Iran, Russia to Abandon Dollar, Trade in National Currencies

Russia and Iran have decided to end trading in dollars for their bilateral economic relations. The countries want to use their national currencies instead. They also could use the euro for trade as reported by the Russian ambassador to Iran, Levan Dzhagaryan.

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"We will support the Russian ruble and the Iranian rial, in case of urgent need [we will work] in euros, in the absence of other options, " said Dzhagaryan to TASS, adding that for Moscow, "the transition to mutual calculations" in national currencies with Tehran "is vital."

The ambassador believes that despite the difficulty of the task, the banking institutes of both nations have the ability to implement the initiative.

Various countries are trying to minimize the usage of the dollar. Last August, Turkish President Tayyip Erdogan announced that Turkey was preparing to adopt payments in national currency to Russia, China, Iran, and Ukraine and use euro for European Union.

Rampant sanctions against countries that oppose the United States hegemony have been using alternative currencies to retaliate against the sanctions.

Last year Iran announced the suppression of the U.S. dollar and replaced it with euro, Iraqi dinar, and Iranian rial.

In order to maintain economic security in the country, Russia on Jan. 10 transferred almost US$100 billion to the Chinese yuan, the euro and Japanese yen.

The High Representative of the EU for Foreign Affairs and Security Policy, Federica Mogherini said Thursday that the EU is launching INSTEX (Instrument of Support to Commercial Exchanges) to trade with Iran in order to evade sanctions imposed by the U.S.