Iran and Russia plan to trade in local currency instead of dollars, 28 DEC

 Iran and Russia plan to trade in local currency instead of dollars

Economy News-Follow-up

Iranian state media reported that Iran and Russia have reached an agreement on trade in their local currencies instead of the US dollar.

She added that the agreement was signed during a meeting between the governors of the central banks of the two countries in Russia.

Both Iran and Russia are under U.S. sanctions.

"Banks and economic actors can now use infrastructures including internal interbank banking systems, without having to use the Universal Interbank Financial Communication Association (SWIFT) system to deal in local currencies," the media said.

Members of the Russian-led Eurasian Economic Union signed a full free trade agreement with Iran on December 25.

Iran's importance to the Kremlin has grown after Western sanctions imposed on Moscow over Moscow's conflict in Ukraine limited Russia's foreign trade routes and forced it to seek markets outside Europe.

Iranian authorities have stated that military cooperation with Russia is expanding. Iran said in November it had finalized arrangements for Su-35 fighter jets, Mi-28 attack helicopters and Yak-130 military training aircraft from Russia.