Timeline for answer to How does INSTEX work, and why won't it work? by o.m.
Current License: CC BY-SA 4.0
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| when toggle format | what | by | license | comment | |
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| Jun 30, 2019 at 14:16 | comment | added | einpoklum | Ok, so now I understand why Iran's deputy foreign minister said that INSTEX must include a credit line or there must be oil purchases. I'm guessing right now it doesn't have any of the two, i.e. no buffer in non-Iranian currency. | |
| Jun 30, 2019 at 10:21 | comment | added | o.m. | @einpoklum, on the long run it has to be balanced. It is supposed to be big enough to buffer temporary imbalances. | |
| Jun 30, 2019 at 10:20 | comment | added | einpoklum | 1. "Deals with" != "Operates in"... 2. So currency is exchanged within INSTEX? Hmm. interesting. That's not like SWIFT, right? Anyway, if that's the case, that means that either trade has to be balanced, or the INSTEX includes credit lines for Iran or for the EU , and the same thing for Iranian companies. | |
| Jun 30, 2019 at 9:26 | comment | added | o.m. | @einpoklum, just about any bank deals with the US. Regarding barter clearing, say A in Europe wants to sell machine tools to B in Iran, and C in Iran wants to sell Persian rugs to D in Europe. So A gets EUR from INSTEX in Europe, B gives IRR to INSTEX in Iran, C gets IRR from INSTEX in Iran and D gives EUR to INSTEX in Europe. No money moves from Europe to Iran or back, no EUR or IRR get converted. | |
| Jun 30, 2019 at 7:54 | comment | added | einpoklum | I don't understand your answer... 1. What is a "barter clearinghouse"? How does that look from the perspective of a single company or person who wants to perform some transaction involving Iranian latency? 2. Most banks in the world don't operate in the US - just in a single country or a few countries (IIANM). Why would such banks care about the risk of not being able to operate in the US? | |
| Jun 30, 2019 at 5:07 | history | answered | o.m. | CC BY-SA 4.0 |