Iran and Russia Abandon US Dollar for Trade: BRICS Crypto Shift

Jonathan Stoker Dec 27, 2023, 16:50pm 81 views

Iran and Russia Abandon US Dollar for Trade: BRICS Crypto Shift

Iran and Russia Announce Landmark Agreement to Trade in Local Currencies

In a significant move that will undoubtedly reshape the economic landscape of the BRICS alliance, Iran and Russia have decided to conduct their trade in local currencies, effectively excluding the US dollar from their bilateral agreements. The profound impact of this decision on future trade between the two nations was reported by Reuters.

The agreements were reportedly ratified by the central bank governors of both countries. This advancement sets the stage for Iran's anticipated entry into the BRICS alliance as one of the five new members in 2024.

Landmark Development for BRICS Initiative

The de-dollarization efforts of the BRICS alliance have taken center stage throughout the past year, representing one of the bloc's most critical initiatives along with its expansion. The recent agreement between BRICS nations, Iran and Russia, marks a significant milestone in these initiatives. The agreement stipulates trade in local currencies, effectively bypassing the US dollar in bilateral trade settlements. This is noteworthy as both nations currently face sanctions from the United States, and the decision aligns with the broader BRICS plan for de-dollarization.

Increased Economic and Military Cooperation

The report states that Banks and economic actors can now use infrastructures, including non-SWIFT interbank systems, to deal in local currencies." Furthermore, it indicates an increased level of economic and military cooperation between the two nations following the imposition of sanctions.

Iran Joins BRICS Expansion Plan

Iran was identified as one of the nations in the BRICS expansion plan announced at the 2023 annual summit. Alongside Iran, Saudi Arabia, the United Arab Emirates (UAE), Egypt, and Ethiopia were also included in the expansion plan. These five countries are projected to officially join the alliance at the beginning of the new year, marking a significant enlargement of the BRICS alliance.

Edited by Jonathan Stoker

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