Iran and Russia Abandon Dollar, Shift to National Currencies for Trade

The Kremlin reported on October 21 that the use of national currencies in mutual settlements between Iran and Russia was up 12.4% in 2024, making up 96% of all transactions.

Photo: Tasnim News

Iran and Russia have officially eliminated the dollar from their trade transactions, opting instead for their respective national currencies, as part of agreements made in the financial sector, according to Mohammad Reza Farzin, Governor of the Central Bank of Iran.

"We have entered into a currency agreement with Russia and fully removed the dollar. Now we only trade in rubles and rials," he told a conference, The Caspian Post reports, citing Russian media.

He also mentioned that the financial authorities of the two countries have agreed on the exchange rate to be used for foreign trade transactions.

The Kremlin reported on October 21 that the use of national currencies in mutual settlements between Iran and Russia was up 12.4% in 2024, making up 96% of all transactions.

In July, a currency swap agreement between the two countries was signed by the Russian and Iranian central banks along with the completed integration of Russia’s Mir payment system with Iran’s Shetab. On November 11, the official ceremony to launch the first stage of the project on the integration of the Iranian and Russian payment systems was held in Tehran, during which Farzin announced that it would now be possible for Iranian citizens to withdraw cash from ATMs on Russian territory using their Iranian bank cards.