Russia and Iran will soon be able to trade without using the dollar.
Posted on 1.9.2022
Sanctioned by the United States, Russia and Iran are on the way to recognizing their Mir and Shetab payment systems. This approach will allow these countries to carry out transactions in their national currencies without using the dollar.
“The central banks of the two countries are negotiating the terms of mutual recognition of Mir and Shetab. We have agreed on the roadmap that should lead us to this result. I’m sure it will happen soon enough,” Russian Foreign Minister Sergey Lavrov said on August 31 during a conference with his Iranian counterpart.
“Good agreements” have been reached on the technical aspects,” added Iranian Foreign Minister Hossein Amir Abdullahian.
In August, Iran said it had the necessary infrastructure to connect the two systems within “a few months”.
The intention to abandon the dollar in Russian-Iranian trade has been repeatedly mentioned by the Russian and Iranian authorities.
It is also with India that Russia expects mutual recognition of payment systems and increased transactions in national currencies.
Where does Mir work?
Mir cards, outside of Russia, can now be used in different countries: Abkhazia, Armenia, Belarus, Bulgaria, Cyprus, United Arab Emirates, Kazakhstan, Kyrgyzstan, South Ossetia, Uzbekistan, Tajikistan, Turkey and Vietnam.
Negotiations are also underway with several countries, including Azerbaijan, Bahrain, China, Cuba, Egypt, Indonesia, Maldives, Nigeria and Thailand.
As part of Western sanctions, major Russian banks have been disconnected from the network SWIFT and Visa and Mastercard payment systems. This approach has made international transactions more complicated.
Holders of Visa and Mastercard cards issued in Russia cannot use them abroad.
Source : With Sputnik