In the dedollarization move, Russia and Iran have gradually eliminated the US dollar from their bilateral trade settlements.
Russia is a member of the BRICS alliance, which is determined to reduce the dominance of the US currency in international trade.
BRICS also plans to introduce the BRICS currency for shared use as an alternative to the US dollar.
Meanwhile, Iran is a country inspired by the goals of the BRICS alliance and is following in its footsteps to slowly eliminate the US dollar.
According to a report from Bitcoin News, Russian Deputy Prime Minister Alexander Novak stated that his country and Iran have gradually eliminated the US dollar from their bilateral trade settlements.
Novak mentioned that the call for the use of the local currencies, the Russian ruble and the Iranian rial, has been effective, with only a few transactions still using the US dollar.
"We discussed this issue in great detail today, with the presence of the Ministry of Finance and the Russian Central Bank, as well as our Iranian counterparts. I believe that around 80 percent of our joint settlements are done using our national currencies, the rial and the ruble," said Novak after the meeting with Iranian officials.
Furthermore, Novak explained that the two countries are considering adopting other alternative currencies for their bilateral trade settlements, such as the Chinese yuan.
It is worth noting that Russia has frequently used the yuan for foreign trade settlements with China.
Novak also revealed that less than 20 percent of the bilateral trade settlements are conducted using the US dollar and the euro.
Since Russia and Iran have been subjected to economic sanctions by the US, both countries have been striving to find alternatives to the US dollar to continue their international trade.
These sanctions have triggered a total shift in the payment mechanisms in international trade transactions, with Iran and Russia seeking to adopt alternative currencies.
A few days ago, Iranian President Ebrahim Raisi mandated the Iranian central bank to establish a foundation with the goal of completely eliminating the US dollar from trade and transitioning to the rial. [pc]
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