Islam Times - Iran-Russia Trade Drops Dollar, SWIFT: CBI

Islam Times - Iran has fully eliminated the US dollar from its trade transactions with Russia, according to its central bank chief, as economic cooperation grows between the two countries under Western sanctions.

On Monday, Mohammad Reza Farzin, Governor of the Central Bank of Iran (CBI), announced that Iran and Russia had established financial settlement arrangements to bypass the dollar-based SWIFT banking system.

“We have a monetary agreement with Russia, and we no longer use the dollar in our relations,” Farzin stated after a ceremony marking the integration of Iranian and Russian payment systems.

Both countries face sanctions from the US and Western allies, restricting access to international banking services. To circumvent SWIFT, Iran and Russia already use Iran's Sepam financial messaging service.

The integration of payment systems, which took place on Monday, now enables Iranian bank card holders to withdraw cash from ATMs in Russia. Reports indicate that a second phase will provide similar access for Russian card holders in Iran, with a third phase allowing Iranians to use point-of-sale machines in Russia for purchases and services.

Farzin added that Iran is working to link its Shetab system to payment services in other countries, although he did not specify which nations at this time due to current circumstances.