Why not recommended the Iran market?

The main reasons are as follows:

First, there is a huge difference between official and private exchange rates.

Compared with last year, the civilian exchange rate in Iran in May was as high as 6,200, but the official exchange rate of the Iranian government was only 4,200, which directly led to the refusal of the Kunlun bank to exchange letters of credit with Iranian buyers at Iran’s official exchange rate.

Kunlun Bank is currently the only legal channel that can receive Iranian remittances. In this way, even this channel has been blocked.

Earlier, the Iranian bank had the business to exchange US dollars. It has completely disappeared since April and May. In other words, in Iran, all US dollars are controlled by the government and individuals cannot use US dollars to import products. Unless the government approves them, nobody can get any money.

Second, since the United States announced the re-sanctions on Iran in August 2017, relations between the United States and Iran have been deteriorating.

In May, Trump announced that the United States has withdrawn from Iran’s nuclear agreement. Thus, the oversea banks that had previously maintained oil trade relations with Iran were forced to withdraw gradually due to US sanctions cause Iran’s economy suffered heavy losses.

On June 26, a U.S. official stated that the U.S. requires other countries to stop importing oil from Iran from November and will not exempt any countries that violate the U.S. sanctions ban.

All this means that cooperation with Iranian buyers is almost in desperation. However, the above two points are not the most critical, and the most critical point is that the United States and Iran are very open to war in the near future.