Iran, Russia's smart move to de-dollarize with a new monetary agreement

Pars Today - The Governor of the Central Bank of Iran announced the signing of the first bilateral monetary agreement for trade exchanges between Iran and Russia.

One of the main tools used by the United States to dominate the global economy is the US dollar, which has been used repeatedly in economic wars against countries that do not align with Washington. Therefore, countries like Iran, Russia, and China are trying to break free from the pressure of the dollar by using various policies and methods.

According to Pars Today, Mohammad Reza Farzin, the Governor of the Central Bank of Iran, said that during a meeting with the Governor of the Central Bank of Russia in St. Petersburg, a bilateral monetary agreement was signed to provide liquidity in national currencies for trade exchanges.

Farzin added that soon, with the launch of the offshore rial trading infrastructure at the Iran Foreign Exchange and Gold Center, the necessary instructions will be sent to the banking network and merchants.

Farzin emphasized that with the monetary agreement, transactions will be based on local currencies, the rial and the ruble, and there will be no need to use other currencies. This is a significant step forward for the country's trade exchanges and eliminates many of the risks associated with currency conversion. Therefore, this is very desirable for Iranian merchants and Russian investors.

Farzin also referred to the monetary and banking relations between Iran and Russia, saying that during a bilateral meeting of the specialized committee, the requirements for connecting the Russian Mir payment card network to the Iranian Shetab payment network were finalized, and the project has entered the operational phase, which will be available to Iranian citizens by the end of next month (early September).

The Governor of the Central Bank of Iran stressed that in this phase, Iranian bank cards in the form of the smart banking card plan (Kahroba) will be usable in all Russian ATMs, and Iranian citizens will be able to withdraw rubles from Russian ATMs using their bank cards.

Farzin explained that the second phase of this connection will be for the benefit of Russian citizens in Iran, and in the third phase, Iranian Shetab cards will be usable in Russia.

MG

Key phrases: US sanctions against Iran, monetary agreement between Iran and Russia, Governor of the Central Bank of Iran, Iranian rial, Russian ruble