Monday, April 1st 11:50 AM IST

Iran's Gold trade with Turkey back on track

# Iran gold coin  # Turkey gold  # gold for oil  

According to reports, Turkey exports $120 million worth of gold in February after a self imposed moratorium in January.

ANKARA(BullionStreet): Circumventing all sanctions,Iran and Turkey continued their gold trade and made $120 million worth deal in February.

According to reports, Turkey exports $120 million worth of gold in February after a self imposed moratorium in January.

Analysts said acute shortage of gas prompted Turkey to resume gold exports to Iran. Turkey, Iran's biggest natural gas customer, has been paying Iran for energy imports with Turkish lira, because sanctions prevent it from paying in dollars or euros.

Turkey is a heavy energy user. And the country they depend upon for gas imports has been Iran. Turkey can only cut it's energy use just so much.

Because of US sanctions which prevent Turkey from paying Iran in dollars or euros, Turkey has been paying Iran in lira, which Iran then uses to buy gold in Turkey and Iranian couriers take the gold back to Iran in carry on luggage or to Dubai where it is sold for foreign currency.

Turkey's total gold exports rose 18 percent to $551.6 million in February from $466 million in January.

Turkey sold $117.9 million worth of gold to Iran in February, while exports to the United Arab Emirates, which has served in the past as a transit route to Tehran, rose to $402.3 million from $371 million in January.

Turkey's monthly gold sales to Iran peaked last July at $1.8 billion, more than 10 times the amount exported to Tehran in February.

Iranians then use those lira, held in Halkbank accounts, to buy gold in Turkey, and couriers carry bullion worth millions of dollars in hand luggage to Dubai, where it can be sold for foreign currency or shipped to Iran.

Turkey, dependent on imported energy and, while it has cut back on oil purchases from Iran, has made clear it cannot simply stop buying Iranian oil and gas.

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