A former rival of the United States will no longer use its currency in international trade.
The recent decision by Russia and Iran to dispense with the use of the US dollar in their bilateral transactions marks a significant milestone in the field of international trade.
This strategic move not only challenges the pre-eminence of the US currency, but also highlights a growing trend towards de-dollarization in various economies at a global level.
Instead of using the US currency, both countries have opted for an exchange system based exclusively on national currencies, specifically rubles and rials.
This agreement not only redefines the trade relations between these two nations, but could also set a significant precedent for others seeking to reduce their dependence on the dollar.
The recent decision by Russia and Iran to dispense with the use of the US dollar in their bilateral transactions marks an important milestone in the field of international trade. Photo: Archive.
De-dollarization: what does saying goodbye to the dollar mean for the world economy?
De-dollarization refers to the process by which nations seek to reduce their dependence on the US dollar in various financial transactions, including international trade, foreign exchange reserves and banking operations.
This phenomenon has acquired notable importance in a global context marked by economic sanctions and growing geopolitical tensions.
In this context, Russia and Iran have implemented a system that establishes a specific exchange rate for their international commercial transactions.
According to Mohamed Reza Farzin, director of the Iranian Central Bank, “we have formalized a monetary agreement with Russia and have completely eliminated the use of the dollar. Currently, our transactions are carried out exclusively in rials and rubles.”
This phenomenon has acquired notable importance in a global context marked by economic sanctions and growing geopolitical tensions. Photo: Archive.
Goodbye to dollar transactions: drastic transformation in the commercial landscape
The notable shift in relations between Russia and Iran not only strengthens their bilateral trade, but could also establish a model for other nations seeking to diversify their international transactions.
This phenomenon could inspire other countries to explore alternatives that allow them to reduce their dependence on traditional currencies.
The elimination of the dollar in interbank transactions between Russia and Iran removes the dependence on the SWIFT system, a global messaging network that facilitates international financial operations.
This change not only optimizes their commercial exchanges, but also represents a significant advance towards economic autonomy.
