FX.co ★ Russia and Iran to make deals in rubles and rials

Russia and Iran aim to make business transactions in the national currencies. Currently, both parties are preparing the legal framework. Aleksey Ulyukaev, Russia’s Minister of economic development, unveiled the plans at a press conference.
The Russian minister noted that deadlines of switching to payments in the national currencies have not been discussed so far. However, he highlighted that central banks of these countries should take charge of it. They are taking action and have already reached an accord on principal points.
Aiming to delink the ruble and the U.S. dollar, the Russian and Iranian five-year memorandum sets out the following mechanisms: lending and making commercial deals in the national currencies.
However, the Russian policymaker warns that difficulty with business payments in rubles and Iranian rials is caused by the fact that the Iranian currency is pegged to the U.S. dollar. Besides, the other problem is that Iranian banks are still being under the U.S. sanctions.