TEHRAN: Iran and Russia have signed an agreement to trade in their local currencies instead of the US dollar, Iran’s state media reported on Wednesday.
Governor of the Central Bank of Iran Mohammad-Reza Farzin and his Russian counterpart reached an agreement to use local currencies in bilateral trade in a recent meeting.
It is pertinent to mention that both Iran and Russia are facing the US sanctions.
Iranian state media said the banks and economic actors can now use infrastructures including non-SWIFT interbank systems to trade in local currencies.
Members of the Russian-led Eurasian Economic Union (EEU) signed the free trade agreement with Iran on December 25.
Tehran has become increasingly important for Moscow after Western sanctions over Russia limit its foreign trade routes and forced it to look for markets outside Europe.
Iranian authorities have said military collaboration with Russia is expanding. Iran in November said it had finalized arrangements for Russia to provide it with Mi-28 attack helicopters, Su-35 fighter jets and Yak-130 pilot training aircraft.