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In a significant shift away from the US Dollar, Iran and Russia have finalized an agreement to conduct trade using their respective local currencies.

This decision was reached during a meeting between the central bank governors of the two countries in Russia and is seen as a strategic response to the economic challenges posed by US sanctions affecting both nations.


The agreement facilitates banks and economic entities to employ alternative infrastructures, including non-SWIFT interbank systems, to carry out local currency transactions. This development aligns with a broader movement to increase economic cooperation and reduce dependency on the US Dollar, especially significant in the context of the comprehensive free trade agreement signed between the Russian-led Eurasian Economic Union (EEU) and Iran on December 25, which aims to boost economic ties between the EEU countries and Iran.

By opting to transact in their national currencies, Iran and Russia are mitigating the impact of US sanctions, thereby enhancing their ability to engage in international trade more freely. Analysts say that this move not only challenges the power of the US Dollar in global transactions but also represents a concerted effort by both countries to find innovative ways to circumvent restrictive measures imposed by the United States.


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