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Sun 25 Dec 2011 10:00 AM

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Iran denies banning trade finance for imports from UAE

Iranian lawmaker said on Friday country banned opening letters of credit for UAE imports

Iran denies banning trade finance for imports from UAE
Dubai in the UAE has a large community of Iranian traders

Iran denied on Saturday reports that the country had prohibited financing for imports of products from the UAE.

"Banking transactions between Iran and UAE are being continued as before and they have not stopped," state TV reported.

An Iranian lawmaker said on Friday the country had banned the opening of letters of credit for importing products from UAE. A letter of credit is a form of financing used in international trade for deals between a supplier in one country and a customer in another.

While some Western countries have imposed tight sanctions on trade with Iran over its disputed nuclear programme, the UAE has served as a conduit for trade between Iran and other countries.

Recent data from the UAE customs authority shows that re-export trade between Iran and the UAE - goods sent to the UAE for on-shipment to Iran and Iranian goods sent to the UAE for on-shipment to other countries - totalled AED19.5bn ($5.3bn) in the first six months of this year, up from AED14.3bn a year earlier.

Dubai in the UAE has a large community of Iranian traders.

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M M Junaid 8 years ago

Well, the UAE and other Arabian states in the area and the
countries around Iran, should keep trade going on as usual
because it is i the interest of all regional countries.

It is not necessary that all countries follow on Americans
steps. All countries should only see their own interest.

Thanks
M.M.Junaid