Iran and Russia connected their national payment systems on Monday, an important step to bypass the US dollar in bilateral transactions, Iran's official IRNA news agency reported.
TEHRAN, Nov. 12 (Xinhua) — Iran and Russia connected their national payment systems on Monday, an important step to bypass the U.S. dollar in bilateral transactions, Iran's official IRNA news agency reported.
The connection between the Russian Mir and Iranian Shetab payment systems was established during a ceremony attended by, among others, the Governor of the Central Bank of Iran, Mohammad-Reza Farzin, and the Iranian Ambassador to Moscow, Kazem Jalali.
The first phase of the project was revealed on this occasion: Iranians will be able to use their bank card to withdraw money in rubles from Russian ATMs. During the second phase, Russians will be able to withdraw rials in Iran. Finally, a final phase will allow Iranians to make purchases in Russian stores using point-of-sale devices and their bank cards, according to IRNA.
“Today we are taking a big step towards dedollarization and facilitation of economic relations between Iran and Russia,” Farzin said at the ceremony, quoted by the semi-official Fars news agency.
Four Iranian banks are offering this new service and others are expected to join them as the necessary measures are implemented, he added.
Iran and Russia, both subject to US sanctions, have recently expanded their political and economic relations, particularly in the banking sector, to counter US restrictions.
In December 2023, Mr. Farzin met with his Russian counterpart Elvira Nabioullina to finalize an agreement that would allow bilateral trade in their national currencies rather than dollars.
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