Business And Markets

Iran, Russia Trade in Own Currencies

Iran, Russia Trade in Own Currencies
Iran, Russia Trade in Own Currencies

A plan for replacing the US dollar and the euro in Iran-Russia trade exchanges is being devised by the Central Bank of Iran, said Head of Iran-Russia Joint Chamber of Commerce on Tuesday.

In the 46th meeting of the representatives of Tehran Chamber of Commerce, Industries, Mines and Agriculture, Asadollah Asgaroladi referred to western sanctions against Tehran and Moscow, and said that the use of national currencies instead of the American dollar in reciprocal trade exchanges can boost economic cooperation between the two countries .

A Russian bank has opened a branch in Iran, which will deliver the export money to Iranian exporters in 3-5 days, according to Asgaroladi. Iran’s Bank Melli has partnered with the Russian bank in the project, he added.  

“The Russian bank is also going to establish overseas branches in all Caspian Sea neighboring countries,” said Asgaroladi, adding that the Russian bank will perform transactions with the Iranian currency rial and the Russian currency ruble.

CBI governor Valiollah Seif has promised to examine the issue and announce the results within the next two months, Asgaroladi added. “In case their assessment concludes that the time is ripe, the CBI will replace the euro, the dollar and the yen with the ruble and the rial.”

The proposal to switch to the ruble and the rial for Iran-Russia trade was raised by the presidents of the two countries on the sidelines of the 11th meeting of the Shanghai Cooperation Organization (SCO), which was held in June 2012 in Astana, Kazakhstan.