Tehran, Iran, Jan. 16
By Milad Fashtami - Trend:
Iran and Russia need to sign a monetary convention, said Mohammad Hossein Barkhordar, a member of Iran Chamber of Commerce, Industries and Mines.
Barkhordar said that by signing the convention, the two countries can decide about the exchange rate of ruble and rial against the US dollar, Iran's ISNA News Agency reported on Jan. 16.
"The western sanctions imposed on Russia have decreased the value of ruble. This discourages Iranian merchants to export goods to Russia," he explained, adding that the falling trend of ruble's value has confused the Central Bank of Iran, which can't decide on a stable exchange rate for the Russian currency.
"Several countries like China, Turkey, and India are using the same conventions," he noted.
Head of Iran-Russia Joint Chamber of Commerce Assadollah Asgaroladi said on September 30 that the chamber is studying a plan to replace US dollar with the two country's national currencies - rial and ruble - in bilateral trades.
"A Russian bank is supposed to establish a branch in Tehran, transferring the money to businesspersons at the exchange rate of free market," he explained.
"Bank Melli of Iran's branch in Moscow will also help transfer money between the two countries' businesspersons," he noted.
The official, however, said in October that the plan to use the two country's national currencies instead of the US dollar for bilateral trades has not been finalized yet.
"The central banks of the two countries are studying the plan," he said, Iran's ISNA News Agency reported on October 22.
He went on to note that if the two countries approve the plan, bilateral trades would boost significantly.
Head of Tehran Chamber of Commerce Yahya Al-e Es'haq said on September 22 that Tehran and Moscow plan to launch a joint bank in near future.
Following the western sanctions imposed on Russia, Moscow voluntarily banned importing certain items from the western countries.
During an official visit to Tehran by a high-ranking Russian delegation, the country officially requested Iran to increase its agricultural products and food stuff exports to Moscow in order to meet the country's domestic demands.
Analysts believe that the western sanctions imposed on Russia, and Moscow's self-imposed bans on importing western goods have created a great opportunity for Iranian goods to enter Russian market.
Tehran has already started exporting fisheries to Moscow.
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