Iran, Russia finalize deal to trade in local currencies instead of US dollar

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.

In July 2022, Iran and Russia announced plans to use their national currencies instead of the US dollar in mutual trade.

During a meeting that month in Tehran, Iran's leader Ayatollah Ali Khamenei expressed the need to abandon the dollar in global trade.

In response, Russian President Vladimir Putin noted that the US was trying to use the dollar as a pressure tool, adding Iran and Russia were working on ways to use their national currencies in their trade relations.

On Monday, Iran signed a free trade agreement with the Russia-led Eurasian Economic Union (EEU).