By John Lee.
Reuters quotes informed sources as saying that the Bank of England (BoE) had recently turned down a request by Tehran to set up special clearing accounts for its banks.
Such accounts, for Iran’s own Central Bank or for the British subsidiaries of Iranian banks, would allow them to make and receive payments in sterling, business so far rejected by commercial banks.
“That would send a huge message to the market. What commercial bank is practically going to stop Bank of England payments? None,” Reuters quoted one Western source as saying.
However, the sources said the BoE seems uninterested in resolving the problem for now.