Dec 14, 2016, 9:42 AM

Tehran, Moscow agree to retire dollar in mutual trade

Tehran, Moscow agree to retire dollar in mutual trade

TEHRAN, Dec. 14 (MNA) – Iran’s ICT Minister Vaezi announced that Iran and Russia have reached primary agreement on replacing dollar with their local currencies in bilateral trade transactions.

Iranian Minister of Communications and IT Mahmoud Vaezi, who is the Iranian head of Iran-Russia Joint Economic Commission, said recent day meetings in various trade sections were the best of their own type adding “holding similar sessions is an indication of serious determination on the part of both sides to resolve existing issues in trade cooperation.”

He recalled that several commission meetings had been conducted over recent days noting “barriers were dealt with and future plans were talked over and good agreements were fortunately reached as evidenced by two banking documents which were inked.”

The official, while stressing that 10 cooperation agreement have been signed between the two countries, stated that one major issue faced by traders was absence of broker relations between Tehran and Moscow in addition to the fact that banks of each side had no branches in the other country; “on the basis of new accords, foreign branches of banks will be established in both states.”

In response to a question on the envisaged date for replacement of dollar with rial and ruble, Vaezi said Russian have agreed to mull over the issue and a meeting will soon be held between central banks of both parties.”

The Iranian ICT minister went on to emphasize that the currency replacement initiative demands certain mechanisms though the overall agreement has been reached and the process will continue until it becomes finalized.

On tariff obstacles in exports of goods to Russia faced by Iranian businessmen, he commented that tariffs will be abolished once free trade agreement between the Eurasian Economic Union and Iran becomes finalized.

Presently, export tariffs for 24 types of commodities have been removed, said Vaezi underlining that process of exports to Russia will become facilitated accordingly.

He underscored that the volume of trade turnover between Iran and Russia have been planned to rise from the current 1.5 billion dollars to 10 billion dollars.

It is worth mentioning that the Eurasian Economic Union comprises the Republic Armenia, the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation.

HA/3849869

News ID 122004

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