Japan Considers Using Central Bank To Get Around Iran Oil Embargo

Less than a day after the largest bank in Japan agreed to comply with a U.S. District Court order barring it from doing business with Iran, a move that precipitously cut off some 80 percent of all oil transactions between the two countries, bankers and government officials in Tokyo are reportedly trying to find a way to circumvent the commercial embargo.

According to Japanese newspaper Nikkei, a proposed solution involves using the Bank of Japan, the countrys sovereign central bank, to handle cash-for-oil transactions.

Concerns are growing among Japans leadership that oil imports to the energy-scarce archipelago nation may be interrupted after the Bank of Tokyo-Mitsubishi UFJ NYSE: MTU froze some $2.6 billion it held in Tehran in response to a May 2 order from a U.S. federal court in New York.

Read the rest of the story: Japan Considers Using Central Bank To Circumvent Iran Oil Payment Embargo.

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