Iran’s state-run news agency IRNA reported on August 24 that Iran’s Ambassador to the Russian Federation has announced exchange of rial and ruble between Iran and Russia for the first in history to trade.
The currencies were reportedly handled by the Russian Central Bank’s Mir system.
Russia set up Mir in 2014 in response to sanctions over the conflict with Ukraine.
Ambassador Kazem Jalali reportedly underlined that the Islamic Republic pays special attention to Russia.
Touching upon the issue of North-South Transport Corridor whose deal started in 2000, the ambassador said the Russian side has stressed the importance of completing the corridor.
North–South Transport Corridor is a sea, rail, and road route expected to facilitate and boost exchange of goods between Iran, India, Russia, Europe, and the Central Asian states.
In his remarks, the ambassador also referred to good agreements between Iranian and Russian customs administrations, and described it as a big step.
Also about the 25-year document on agreement on cooperation between Tehran and Moscow, Jalali said it is not a secret issue but a strategic agreement whose draft has already been prepared and the two governments will sign it after review; then it will be sent to the Majlis (Iran’s parliament) for approval.
Recall, Iran and Russia have been working toward using their own currencies for business relations for some time.
Speaking at his weekly presser, Iran's Minister of Finance and Economic Affairs Ehsan Khandouzi noted on July 26 that Russian President Putin's visit to Tehran was in line with the implementation of the agreements made during Iranian President Raeisi's visit to Moscow.
Regarding the banking, financial and economic cooperation with Russia, the first step has been taken, the Iranian minister said, adding that the ruble has entered the trade transactions between Iran and Russia.
Earlier on July 9, Governor of the Central Bank of Iran (CBI), Ali Salehabadi said during his meeting with Deputy Prime Minister of Russia Alexander Novak in Moscow that good understandings were reached on using national currencies in economic exchanges between Iran and Russia.
The same month, the Tehran Stock Exchange launched rial-ruble trading. According to the currency converter website Xe, one Russian ruble is worth around 703 rial.
Meanwhile, Al-Monitor reported on August 24 that the US dollar could be losing a small bit of its dominance in the Middle East. Saudi Arabia and China have reportedly also discussed pricing oil deals in yuan instead of the dollar. India also decided last month to allowed rupee payments for imports and exports, which could also boost trade with Iran.
