BAKU, Azerbaijan, November 25. Iran and Russia have completely canceled the use of the US dollar in trade turnover, the director general of Iran's Central Bank Mohammad Reza Farzin said on November 25 at the 11th Annual Conference on Modern Banking and Payment Systems in Tehran, Trend reports.
According to him, the rial (Iranian currency) and ruble (Russian currency) are currently used in trade turnover between Iran and Russia. Iran hopes to apply this model to trade turnover with other countries.
Farzin noted that tapping into the Russian payment network was one of the programs of Iran's Central Bank. Recently, the Iranian system 'Shetab' and several banks have hooked up in the Russian ‘Mir’. This system is currently working. However, since it is the beginning, there is slowness. More and more work will be done on this system as time goes by.
The director general of Iran's Central Bank noted that the second phase of using local currency between Iran and Russia is to allow Russian tourists to use Iranian commercial and public facilities. This phase is expected to be implemented in the coming months. Whereas on the third stage, Iranian tourists will be able to use Russian post-terminals, and it is expected to be introduced next year.
Commenting on Iran's international banking relations, Farzin stated that due to the sanctions against Iran, there are many problems in this field. However, several positive steps have been taken over the years. One such step was joining the Asian Clearing Union. In managing sanctions, Iran seeks to maximize the use of this instrument. Iran cooperates with India, Pakistan, and other member countries of this union. Iran uses this system instead of SWIFT.
To note, with the imposition of US sanctions against Iran in November 2018, the World Society for Interbank Financial Telecommunication (SWIFT), which is an international interbank data transmission and payment system, severed ties with Iranian banks.