Iran has devised a scheme to maintain some fiscal normalcy amid international tensions related to its nuclear programme after the U.S. and the eurozone imposed sanctions affecting the country's trade and financial transactions, by accepting physical gold as payment for trade, along with the U.S. dollar and other agreed currencies of other nations.

Mahmoud Bahmani, the governor of Iran's central bank, as reported by domestic Iranian news agencies, made the pronouncement on Tuesday.

"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," Mr Bahmani was quoted as saying. "If a country should so choose, it can pay in gold and we would accept that without any reservation."

The Financial Times reported that local businesses in Iran have started accepting national currencies from Turkey, South Korea and Japan as payment.

"We have managed to find new methods and ways in our exchanges with other countries to, first of all, get rid of the dollar, and then to use local currencies, exchange methods and direct bartering and other means to get around the sanctions," Abbas Araqchi, a deputy foreign minister, told the Fars news agency.

Iran's decision to accept gold is a true testament to the metal's purchasing power and its safe haven appeal.

"This is a confirmation of gold's status as a store of value, a universal currency," Michael Cuggino, a fund manager, said in Bloomberg News. "It transcends national borders."

For 11 years now, gold has rallied to act as hedge against inflation and a falling dollar. It has risen by 13 per cent to $1,780.00 an ounce so far this year. Its last record holding high was in September 2011, when it hit $1,923.70 an ounce in September.

But investors of the precious yellow metal gold may have to hold on to their horses, yet, as analysts don't see any massive gold swapping between Iran and the other nations that might warrant a shake-up in the gold bullion market.

"When Iran sells oil and receives gold, it will have to use the gold to do something else. If this became an established practice, which I would be very surprised by, yes there would probably be a positive impact on the price," Nikos Kavalis, RBS analyst, said in Reuters News. "But it's not the same thing as there being an actual end-use for gold."

"It's down to the sanctions in place on currency transactions in and out of Iran ... That is probably the main motivation. You can't transfer dollars, but at least you can put a boat in the water and send some gold," said Ole Hansen, Saxo Bank senior manager.

In addition, Iran is also open to accepting goods from its trading partner countries, such as China and India, instead of the hard currency. "This will face no problem," Mr Bahmani said.

Earlier, both emerging market economies China and India, also largest consumers of Iranian oil, have said they will continue imports. Japan and Korea, other Asian economic leaders, have announced cuts to quotas following pressure from the United States.

The U.S. and the Eurozone enforced the trade sanctions to protest oil-rich Iran's nuclear programme, to which until now it denies, flatly saying it is being used for civilian purposes only. The trade sanctions was a last ditch effort by the global market leaders to force Iran to give up its nuclear programme, along with its parallel outcomes.