Nicosia, Nov 24  - Tahmasb Mazaheri, the Governor of the Central Bank of Iran, is playing down the effect of United States sanctions on Iranian banks, saying they are just “ psychological warfare”. Talking to the press, Mazaheri said that the sanctions would not stop Iran from finding other ways to meet the country’s banking needs.

The US Administration, following the impasse on the question of Tehran’s nuclear programme, is increasing its pressure on Iranian banks and last October added more banks and the Revolutionary Guards to a list of Iranian institutions which are under sanctions.

European banks are under strong pressure from the US to limit their operations in and transactions with Tehran. It is reported that some major German Banks have already complied with the request and asked their Iranian clients to close their accounts.

The Governor of the Central Bank of Iran said that his country’s banking activities would not stop because of “ lack of cooperation with one country”.

Mazaheri said that three foreign banks, the names of which were not disclosed, had received permits to operate in Iran either alone or in cooperation with local investors. He added that foreign banks would not face any restrictions in carrying out banking business in Iran or investing in the country. (ANI)