Plans for Mutual Commercial Transactions Using Local Currencies Unveiled Last Year.
Iran and Russia Seal the Deal: Mutual Commercial Transactions to Shift from US Dollars to Local Currencies as Agreement Finalized. (PHOTO: NDTV)
According to an AA report, Iran and Russia have agreed to trade using their own money instead of the US dollar, a move recently finalized in a meeting between their central bank leaders. This decision, reported by Iran’s state-run news agency, IRNA, signifies a new era in banking relations between the two countries. The deal includes using non-SWIFT messaging systems and establishing direct currency exchanges, making transactions smoother for businesses in Iran and Russia.
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This shift away from the US dollar was announced in July 2022, with both nations expressing their intention to use their local currencies in mutual trade. The recent meeting in Russia confirmed and solidified this decision, showcasing a commitment to economic collaboration independent of the US dollar. The implementation of new financial platforms is expected to streamline financial transactions and bolster economic ties between the two countries.
Amid global discussions on reducing dependence on the US dollar in international trade, Iran and Russia’s move is a notable step toward greater financial independence. Last year, Iran’s leader, Ayatollah Ali Khamenei, emphasized the need to abandon the dollar in global trade during a meeting in Tehran. Russian President Vladimir Putin also acknowledged the US’s attempts to use the dollar as a pressure tool and expressed ongoing efforts by Iran and Russia to use their national currencies in trade relations. This decision aligns with a broader trend of nations seeking alternatives to the traditional dominance of the US dollar in international transactions.
