Iran & the EU sanctions!

While the Iranian Information Minister in a press conference referred to a “psychological war” by the West against Iran, it was also reported that an Iranian bank, Bank-e Sepah- has stopped its dealings in foreign currency. Until further notice this bank would not issue any LC’s and would not conduct any other international activities. The minister had issued threats against the “internal forces” helping the “ enemy”, but did not clarify further. A top official in the Central Bank has stated that his bank had taken the necessary steps to deal with the “threat”, however, he did not spell out what these measures were likely to be. It was, however, revealed that the Central Bank has also stopped using the US dollars in its dealings. In addition to Bank-e Sepah, Bank-e Saderat has also been black listed by the US. What is worrying, however, is the fact that Iran and its financial sector seems to be totally unprepared to deal with the fall outs of the eminent EU sanctions. If the structural weakness of the economy is also considered, I fear that a lot sooner than many people believe, economic sanctions would break the back bone of Iran. As it is always the case, the heavy price at the end would be paid by the people of Iran. This is what really, really angers me.