TEHRAN: The US dollar will be gradually eliminated from Iranian-Russian economic transactions, Iran's chief banker said, citing the country's official news report.
Iran's top banker reportedly stated that US dollars will eventually be phased out of Iranian-Russian trade, according to the nation's official news agency. Governor of the Central Bank of Iran (CBI) Ali Salehabadi said, trade between Iran and Russia was valued at $4 billion and could be performed using both the rial and the ruble, as per reports.
To use their respective national currencies in small-scale economic operations, the two nations have exchanged a memorandum of understanding, he said.Iran's Supreme Leader Ayatollah Ali Khamenei urged for the gradual abolition of the dollar in bilateral interactions during a meeting with Russian President Vladimir Putin on Tuesday. On the same day, Iran's foreign exchange market also opened for rial-ruble trade.
US-led Western sanctions are in place on both Iran and Russia.
Increased trade with Russia might help Iran's economy, which has been struggling under US oil and banking sanctions for years, despite its growing political isolation. Russia, on the other hand, views Iran as a potential source of armaments since it provides a trading conduit, knowledge of how to bypass sanctions, and experience with oil exports.
Although Iranian leaders, particularly the conservative hardliners who currently control the nation, have long aspired to strengthen ties with Russia, the conflict in Ukraine has suddenly elevated Iran to a more prominent position in Putin's diplomacy.
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