BRICS: Iran and Russia Push for Non-Dollar Trade Amid Sanctions

Iran and Russia are committed to reducing their dependence on the US dollar by promoting the use of their national currencies in bilateral trade, stated Mohammad Reza Farzin during a speech to Russian economic activists in St. Petersburg.

The governor of the Central Bank of Iran highlighted the importance of enhancing banking cooperation between the two countries and leveraging regional financial institutions to circumvent harsh sanctions and diminish the dollar’s dominance in financial transactions.

Farzin proposed the establishment of a financial institution akin to the Financial Action Task Force (FATF) among BRICS nations, underscoring Iran’s readiness to support Russia’s accession to the Asian Clearing Union (ACU) with necessary technical assistance.

He emphasized that utilizing currencies like the ruble, yuan, dirham, and rial in transactions between Russia, Iran, China, and other partners could significantly ease banking obstacles in bilateral trade.

Describing the ACU as an effective platform for reducing reliance on the US dollar in transactions among its member states, Farzin noted that India, Pakistan, and recently Belarus are current members, with Iran extending an invitation to Russia to join the union.