Iran and Russia finalize deal to trade in local currencies


Iran and Russia have finalized an agreement under which they will trade in their local currencies instead of the US dollar, Iran’s state-run news agency IRNA reported Wednesday. 

“The establishment of new financial and banking platforms has opened a ‘new chapter’ in banking relations between Iran and Russia, with the two countries agreeing to ditch the US dollar and instead trade in local currencies,” said IRNA, citing information from the Central Bank of Iran.

The deal was finalized at a meeting held in Russia between the central bank governors of the two nations, it said.

Platforms such as non-SWIFT messaging systems and establishing bilateral brokerage relations using national currencies are now being used by banks and businesses in Iran and Russia, it added.

Iran and Russia ditch US dollar for trade

The global de-dollarization drive has been going on for years with BRIC countries and the so-called pariah states trying to ditch the American dollar in favor of other currencies

Earlier in the current year, Russia paid dividends from the Sakhalin 1 and 2 oil projects in Chinese yuan instead of the dollar. Last year, Russia was cut off from the US dollar-dominated global payments systems following sweeping sanctions off the Ukraine war. 

Russia has declared it will no longer accept the American currency as payment for its energy commodities but will instead switch to Chinese and Emirati currencies. 

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