Economy, Business And Markets

Russia, Iran May Agree on Deals in National Currency

Russia, Iran May Agree on Deals in National CurrencyRussia, Iran May Agree on Deals in National Currency

Russia and Iran could reach an official agreement on the transition to mutual payment in local currencies.

The statement was made Friday by Hossein Yaghoubi Miab, director general of the international affairs department of the Central Bank of Iran on the sidelines of the St. Petersburg International Economic Forum, reported Ria Novosti.

Shifting trading to local currencies aims at reducing the dependence of both countries on the US dollar.

The CBI has already proposed the relevant mechanism to the Russian Central Bank regarding how to make the best use of national currencies in mutual payments.

The Russian side is studying the proposal and will announce their assessment. Once the Russian side agrees, the central banks of the two countries will conclude an agreement, he said by emphasizing that it is expected to take place soon.

Miab further said that Moscow is looking forward for signing this deal, as soon as they finalize studying the proposal submitted by Iran.

Iran also aspires to this agreement, Miab said, and noted that both countries will benefit from the arrangement as it entails lower currency risks.

Economic and political relations between Russia and Iran date back centuries. Ties cover fields such as trade, energy sector, military, agriculture, telecommunications, transportation, nuclear and many others.

Currently, the two countries are keen to expand cooperation in various fields including nanotechnologies, power plants and investment projects.

Russia exported $420 million worth of goods to Tehran during the first two months of current Iranian fiscal year that began in March. Iran’s imports from Russia recorded a rise by 494% year on year.

Tehran and Moscow have similar positions on some regional issues including the crisis in Syria.