Iran Currency Exchange, known as the regulated forex market, has started trading the Russian ruble from last Tuesday.
The Russian currency is the third being traded in the regulated market after the dollar and euro, according to Mostafa Qamari-Vafa, head of Central Bank of Iran public relations office.
The regulated market is a spot market dealing in wholesale currency banknote. Trade is handled by authorized exchange shops and agent banks are brokers. The CBI as the regulator oversees the trade.
The currency market is seen as a government measure to restore some discipline in the chaotic forex market. It was created in 2020 to organize an open and transparent system where currency is traded electronically.
Observers describe the latest ruble policy in line with efforts by the two sides to promote trade in national currencies and gradually move from than dollar.
According to Qamari-Vafa, the decision further enables exporters to sell their overseas income at the regulated forex market.
“Iranian exporters can henceforth sell their export proceeds to banks and authorized exchanges at negotiated rates in the same way as the dollar and euro,” he said in a note on Twitter.
By selling currency to official moneychangers at “negotiated prices”, the official was referring to measures taken last month by the CBI to encourage export firms to sell their forex earnings to the turbulent market.
In mid-June and amid fresh volatility, the CBI allowed moneychangers to purchase overseas currency from exporters at mutually agreed higher rates.
De-Dollarization
Russia and some other countries, including Iran, have been long pushing for de-dollarization in light of near permanent US policy to use the greenback as a tool to impose economic sanctions whenever it desires.
Citing government officials, Russian media outlets on Monday reiterated the need to eliminate dollar in the Russo-Iran trade.
Russian presidential spokesman Dmitry Peskov on Monday said Moscow and Tehran are working to gradually end the use of the US dollar and improve bilateral trade.
He said that trade between Russia and Iran grew 31% in the last few months. Russia and Iran now have an opportunity to build cooperation to mitigate the effects of the US sanctions, Russia’s Oreanda News Agency said.
The statement came in the run-up to visit to Tehran by Russian President Vladimir Putin this week.
Earlier in the month, the CBI Governor Ali Salehabadi spoke about efforts to eliminate the dollar and euro in Iran-Russia trade.
“Use of non-dollar and non-euro currencies are among priority issues. We hope to see practical results in practice.”
On the de-dollarization issue, Salehabadi pointed to using local banking messaging services instead of SWIFT (Society for Worldwide Interbank Financial Telecommunication).
Russia has a nationwide payment network as Iran, and given the geopolitical significance of closer bilateral ties, expanding banking ties is seen as crucial.
“Iran is currently using local interbank messaging system instead of SWIFT and Russia has its own local messaging systems. These can form a basis for expanding banking cooperation.” the CBI boss said.
