Tehran, Moscow officially ditch dollar in mutual trade
Iran and Russia have officially abandoned the American Greenback for mutual settlements after the two countries finalized an agreement to trade in the ruble and the rial.
MEHR: Iran and Russia have officially abandoned the American Greenback for mutual settlements after the two countries finalized an agreement to trade in the ruble and the rial.
The agreement was sealed during a meeting in Russia between the heads of the central banks of the two countries, RT reported.
The establishment of new financial and banking platforms has opened a ‘new chapter’ in relations between Iran and Russia, the Central Bank of Iran stated.
The arrangement allows banks and entrepreneurs to use alternative financial and banking platforms, such as non-SWIFT money-messaging systems, and also involves the establishment of bilateral brokerage relations in national currencies.
Iran and Russia, both subject to the US sanctions, first announced plans to use their respective national currencies instead of the US dollar in the bilateral trade in July 2022. Earlier this week, members of the Russia-led Eurasian Economic Union (EAEU) signed a full-fledged Free Trade Agreement (FTA) with Iran.
In July, Iranian President Ebrahim Raeisi called for the dollar to be abandoned in international trade, saying that the US currency has been used as an instrument of Western hegemony.
Over the past year, Moscow and Tehran have significantly strengthened their economic cooperation in the face of Western economic sanctions.
Bilateral trade turnover has nearly tripled from $1.6 billion in 2019 to $4.6 billion in 2022, according to official data.
