Governor of the Central Bank of Iran (CBI) Mohammad-Reza Farzin announced that Russia and Iran have abandoned the use of the US dollar in bilateral transactions and switched to the national currencies of the two countries.
The head of the CBI made the remarks at the 11th Conference on Modern Banking and Payment Systems in Tehran, Iran on November 25, Fars News reported. Mr. Farzin said the move was part of a plan to counter "unjust sanctions".
"We have signed a currency agreement with Russia and abandoned the US dollar. Now we only trade in rubles and rials," Fars News quoted Governor Farzin as saying.
He also revealed that the financial authorities of the two countries have agreed on the exchange rate that will be used for foreign trade transactions.
Iran and Russia, both under US sanctions, have announced plans to use national currencies instead of the US dollar in bilateral trade for the first time by July 2022.
Last December, the two countries finalized a deal to trade in rubles and rials. Under the deal, banks and businesses will be allowed to use alternative banking and financial platforms, such as non-SWIFT payment systems.
Earlier this month, Farzin announced that Moscow and Tehran had formally completed the pairing of their national payment systems, allowing visitors from both countries to use domestic debit cards to make purchases in Iran or Russia. He said Tehran could eventually start using Russia’s Mir payment system to make payments with other international partners.
On November 25, the CBI Governor hailed the link between Russia's Mir banking system and Iran's Shetab as another achievement in developing banking relations.
Moscow and Tehran have strengthened ties in the face of Western sanctions, boosting trade and financial cooperation.
The Kremlin said in October that bilateral trade volume increased by 12.4% in the first eight months of this year alone, after reaching more than $4 billion in 2023.
The Islamic Republic has also been working to boost trade and cooperation within the BRICS economic bloc, according to Farzin. In January 2024, Iran officially joined the group – which initially included Brazil, Russia, India, China and South Africa – along with Egypt, Ethiopia and the United Arab Emirates (UAE).
