Worthy Christian News > World News > Russia and Iran Sign Bilateral Trade Agreement, Ditches the Dollar

Russia and Iran Sign Bilateral Trade Agreement, Ditches the Dollar

by Emmitt Barry, Worthy News Correspondent

(Worthy News) – Iran and Russia have finalized an agreement to use their respective national currencies for bilateral trade, ditching the U.S. dollar in the process, as reported by Iran’s state media on Wednesday.

The governors of the central banks from both countries finalized the agreement at a recent meeting, as stated in a report by Iran’s state media.

The agreement facilitates Russian and Iranian banks and companies to conduct transactions in rubles and rials using non-SWIFT systems and bilateral links, enabling financial dealings despite U.S. sanctions.

Russia and Iran’s decision forms part of a broader initiative by BRICS countries to reduce their dependence on the U.S. dollar for international payments and investments.

This agreement comes on the heels of another trade agreement signed this week with Iran. The Eurasian Economic Union, consisting of Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, signed a free trade agreement with Iran on Christmas Day.

The Iranian agreement with the Eurasian Economic Union will permanently replace a similar provisional pact established in 2019. The previous arrangement boosted mutual trade with Iran, raising it from $2.4 billion in 2019 to $6.2 billion in 2022.