The two countries have completely shifted to trade in their national currencies, according to the Iranian government lender

Russia and Iran have abandoned the use of the US dollar in bilateral trade, shifting to their national currencies, Central Bank of Iran (CBI) Governor Mohammad-Reza Farzin has stated, according to local media reports.

The CBI chief made the remarks at the 11th Conference on Modern Banking and Payment Systems in Tehran on Monday. He said the move was part of a plan to counter “unjust sanctions.”

“We have entered into a currency agreement with Russia and abandoned the dollar. Now we only trade in rubles and rials,” Farzin was quoted as saying by Fars News. 

He also revealed that the two nations’ financial authorities have agreed on the exchange rate to be used for foreign trade transactions.

Iran and Russia, both subject to US sanctions, first announced plans to use their respective national currencies instead of the greenback in mutual trade in July 2022. 

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Russia and Iran connect national payment networks – media

Last December, they finalized an agreement to trade in the ruble and the rial. As part of the arrangement, banks and entrepreneurs are allowed to use alternative financial and banking platforms, such as non-SWIFT money-messaging systems.

Farzin announced earlier this month that Moscow and Tehran had officially finalized the pairing of their national payment systems, which will allow travelers from the two countries to use their domestic debit cards for purchases in either Iran or Russia. Tehran could eventually start using Russia’s Mir payment system for settlements with other international partners, he said.

On Monday, the CBI chief praised the connection between Russia’s Mir and Iran’s Shetab banking systems as another achievement for developing banking interactions.

Moscow and Tehran have strengthened relations in the face of Western sanctions, boosting trade and financial cooperation.

The Kremlin said in October that bilateral trade volume grew by 12.4% in the first eight months of this year alone, after amounting to more than $4 billion in 2023.

According to Farzin, the Islamic Republic has also been making efforts to boost trade and cooperation within the BRICS economic bloc. In January, Iran officially joined the group – initially comprised of Brazil, Russia, India, China, and South Africa – along with Egypt, Ethiopia, and the United Arab Emirates.