Two countries under US sanctions announced they have "erased" the USD, trading only in local currencies.

On November 25, Governor of the Central Bank of Iran (CBI) Mohammad-Reza Farzin announced that his country and Russia have abandoned the use of the US dollar in bilateral transactions and switched to the two countries' local currencies.

Iran and Russia have announced plans to use national currencies instead of the US dollar in bilateral trade for the first time in July 2022. (Source: african.business)

The CBI chief made the remarks at the 11th Conference on Modern Banking and Payment Systems in Tehran, Iran.

Mr. Farzin informed that the above move is part of a plan to counter "unjust sanctions" by the West.

"We have signed a currency agreement with Russia and abandoned the US dollar. Now we only trade in rubles and rials. Besides, the financial authorities of the two countries have agreed on the exchange rate that will be used for foreign trade transactions," the CBI Governor revealed.

Iran and Russia - both countries subject to US sanctions - have announced plans to use national currencies instead of the US dollar in bilateral trade for the first time in July 2022.

In December 2023, the two countries completed an agreement to trade in Rubles and Rials.

Under the agreement, banks and businesses are allowed to use alternative banking and financial platforms, such as non-SWIFT payment systems.

Earlier this November, Moscow and Tehran officially completed the pairing of their national payment systems, allowing tourists from both countries to use domestic debit cards to make purchases in Iran or Russia.

Iran may start using the Russian payment system Mir to settle payments with other international partners.

The CBI governor hailed the link between Russia's Mir banking system and Iran's Shetab as another achievement in developing banking relations.

“By connecting the two countries’ national payment networks, the boundaries of electronic payments will be erased and a new chapter will begin in the economic and cultural cooperation of the two countries,” the official stressed.

In October 2024, Russia said that bilateral trade volume increased by 12.4% in just the first eight months of this year, after reaching more than $4 billion in 2023.

Source: https://baoquocte.vn/hai-nuoc-chiu-lenh-trung-phat-cua-my-tuyen-bo-da-xoa-so-usd-chi-giao-dich-bang-noi-te-295189.html