Bitcoin News and Finance
Russia and Iran Phasing Out US Dollar in Bilateral Trade Settlements Skip to main content

Russia and Iran Phasing Out US Dollar in Bilateral Trade Settlements

iran russia us dollar

The governments of Russia and Iran are starting to phase out the usage of the U.S. dollar to conduct bilateral trade settlements. Russian Deputy Prime Minister Alexander Novak stated that 80% of Russia-Iran trade transactions are settled using national currencies and that they are considering also the usage of the Chinese yuan.

80% of Russia-Iran Trade Settlements Involve National Currencies

Russian and Iran have started to phase out the usage of the U.S. dollar in their bilateral trade settlements. According to Russian Deputy Prime Minister Alexander Novak, the call to use national currencies, including the Russian ruble and the Iranian rial, has been effective, leaving only a small amount of these transactions still relying on the U.S. dollar.

After meeting with Iranian officials, Novak stated:

We discussed these issues in great detail today, and both the Ministry of Finance and the Bank of Russia were present, as were our Iranian counterparts. I believe approximately 80% of our mutual settlements are in national currencies: rials and rubles.

Furthermore, Novak stated that the two countries were considering the usage of other third-party currencies to settle their bilateral transactions, including the Chinese yuan, a currency already widely used by the Russian Federation.

A Push to Ditch the U.S. Dollar

Novak also referred to the low utilization of traditional settlement currencies, including the U.S. dollar and the euro, stating that less than 20% of transactions involved settlements using them. “The work that was purposefully carried out in order to switch to national currencies has its results,” he stated.

Both Iran and Russia are currently facing economic sanctions enacted by the U.S. government that make difficult the use of the dollar for completing transactions using the traditional finance system. This has resulted in a complete change of the payment mechanics in international trade transactions, with the two countries seeking to adopt alternatives.

Recently, Iranian President Ebrahim Raisi ordered the Central Bank of Iran to lay the groundwork for ditching the U.S. dollar completely from its trade transactions and switching to the Iranian rial and national currencies. In the same way, Russia has supported the shift to using national currencies and the Chinese yuan for this same purpose.

In January, it was reported that both countries were discussing the possibility of the issuance of a gold-backed stablecoin to be used for international settlements, but Russian officials stated this discussion would have to be postponed until the approval of a clear cryptocurrency legal framework.

What do you think about the phasing out of the U.S. dollar in Russia-Iran bilateral trade payments? Tell us in the comments section below.

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory