Iran's answer to US-imposed sanctions is the grey market. But what is it?

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How grey markets will allow Iran to dodge the US-imposed sanctions

to dodge Washington-imposed trade restrictions and export its oil to foreign buyers. A grey market is an unofficial but not completely illegal trading system, which legally bypasses authorized routes of distribution. Contrary to black markets, grey markets follow legal guidelines and provide an alternate trading platform, in which products are usually sold at lower prices.

Iran, he said, will most probably sell its oil through grey market channels using different cryptocurrencies, and bypass the US sanctions. “We will need to make serious decisions about our financial and economic management, and the government is working on that. We have mobilized all of the country’s resources and are selling oil in the ‘gray market’.”

US President Donald Trump speaks to reporters with National Security Adviser John Bolton looking on in the Oval Office at the White House in Washington on May 3, 2019. In addition to the grey market option, Iran aims to protect its economy against US threats by rearranging its trade relations with its neighbours Iraq, Turkey and Syria.

 

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