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In what may well be a massive development for the BRICS alliance, both Iran and Russia have agreed to trade in local currencies, ditching the US dollar. Indeed, Reuters reported that the two nations have finalized a deal that will have a massive impact on their trade dealings.
According to reports, both nations have agreed to abandon the greenback within bilateral trade agreements. Moreover, the agreement was reportedly finalized by the governors of both nations’ respective central banks. Conversely, Iran is set to become one of the BRICS’ five new members in 2024.
Iran & Russia Agree to Trade in Local Currencies, Not US Dollar
Throughout this last year, the de-dollarization efforts of the BRICS bloc have been front and center. Moreover, the alliance has made it one of its most important initiatives, alongside expansion. Now, both of those endeavors have coincided with what may be a landmark development.
Specifically, BRICS countries Iran and Russia have finalized an agreement to trade in local currencies, thereby ditching the US dollar. The countries would be abandoning the greenback in bilateral trade settlements for both nations, which are currently under United States sanctions. Coinciding with greater BRICS de-dollarization plans.
“Banks and economic actors can now use infrastructures, including non-SWIFT interbank systems, to deal in local currencies,” the report stated. Additionally, the report notes that both countries have increased economic and military cooperation following the imposed sanctions on each.
Iran was one of the nations included in the BRICS expansion plan announced at its 2023 annual summit. Specifically, it joined Saudi Arabia, the United Arab Emirates (UAE), Egypt, and Ethiopia. Moreover, the five countries are set to officially join the alliance at the start of the new year.
