Iran, Russia officially link national payment systems to bypass USD transactions
Date
11/12/2024 4:43:58 AM
(MENAFN) On Monday, Iran and Russia officially linked their national payment systems in a significant move aimed at bypassing the US dollar in bilateral transactions, according to Iran's official news agency IRNA. The linkage connects Russia's Mir payment system with Iran's Shetab system, a step that both countries hope will facilitate smoother economic exchanges and reduce reliance on the US dollar.
The announcement was made during a ceremony attended by Mohammad-Reza Farzin, the Governor of the Central bank of Iran (CBI), and Kazem Jalali, Iran's Ambassador to Moscow. This event marked the unveiling of the first phase of the project, which allows Iranian citizens to withdraw rubles from Russian ATMs using their bank cards. The second phase will enable Russian nationals to withdraw cash in Iran, while the final phase will enable Iranians to make purchases at Russian stores using their bank cards at point-of-sale devices.
Farzin emphasized the importance of this move in advancing de-dollarization efforts and improving economic relations between Iran and Russia. He noted that the new system would make transactions more efficient and help both nations circumvent US sanctions that have long targeted their economies. Currently, four Iranian banks are participating in this new system, with more expected to join as the necessary infrastructure is implemented.
The decision to link the two countries' payment systems follows a broader pattern of strengthening political and economic ties between Iran and Russia, especially in response to US sanctions. Last December, Farzin and his Russian counterpart, Elvira Nabiullina, finalized an agreement that would allow the two nations to conduct trade using their respective currencies instead of relying on the US dollar. This agreement is part of a broader strategy to reduce the impact of external financial pressures on both countries.
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