Iran, Russia Agree to Ditch US Dollar, Trade in National Currencies
- September, 03, 2016 - 10:55
- Economy news
TEHRAN (Tasnim) – The Central Bank of Russia said Tehran and Moscow have agreed to end the use of the US dollar in bilateral trade, switching to national currencies instead.
Iran and Russia have signed an agreement whereby the two countries will switch to national currencies in their mutual trade, the Central Bank of Russia said in a statement, according to a report by Sputnik on Friday.
The deal was inked during the 4th plenary session of the permanent Russian-Iranian commission on trade-economic cooperation in Tehran on Thursday attended by Gholamali Kamyab, the vice governor of the Central Bank of Iran (CBI), and Bank of Russia Deputy Governor Dmitry Skobelki.
"During the meeting, agreements were signed between the commercial banks on the financing of mutual supplies of products using in the (respective) national currencies," the statement said.
In March, Iran and Russia signed a basic agreement to create a joint regulatory body to oversee interbank financial transactions between the two countries.
The agreement - that was signed between the Iranian and Russian central banks – took both countries one step closer toward the establishment of the promised joint bank - which is believed to have been specifically designed to help dodge the effects of US-led sanctions on the two countries.