In the face of escalating sanctions imposed by the European Union and the U.S. government, supposedly related to the Iranian nuclear program, officials in Iran announced that the nation would accept gold and currencies other than the dollar in international trade. China, Russia, India, and other major economies have continued to do business with the Islamic Republic despite the growing Western pressure.

"In its trade transactions with other countries, Iran does not limit itself to the U.S. dollar, and the country can pay using its own currency," Iranian central bank governor Mahmoud Bahmani was quoted as saying in state-controlled media. "If a country should so choose, it can pay in gold and we would accept that without any reservation."
 
Analysts said the move, officially announced Tuesday, represents another serious attack on the status of the already-embattled American dollar. While it currently serves as the global reserve currency — due mostly to its use in paying for oil on international markets — the Federal Reserve-issued debt-based currency is facing increasing challenges on several fronts.
 
Unlike most of the world’s nations, which have privately owned monetary authorities, such as the Fed, that are controlled by banking cartels, Iran has a state-owned central bank. More than a few analysts have suggested the Islamic Republic’s relatively unique monetary system is actually one of the reasons Western belligerence toward the nation is growing louder.
 
Prior to the NATO-backed overthrow of strongman Moammar Gadhafi, Libya also had a state-owned central bank. The nation had massive reserves and no foreign debt before “regime change” arrived. But in the early days of the Western-backed rebellion, “rebels” promptly established a new central bank to replace Libya’s existing monetary authority — sparking serious suspicions among analysts.

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