Thursday, May 30

Iran and Russia are working on launching payments in digital currencies of central banks

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Tehran maintains an effective trade partnership with Moscow.

Iran and Russia are working on new settlement methods that could simplify trade between the two countries and potentially mitigate the effects of sanctions. Now, when making payments, there are problems in converting national currencies and the discrepancy between the market rate in Iran and the state one.

What new payment methods are being worked out with Iran

Tehran and Moscow are working on innovative solutions for settlements, Mohsen Rahimi, trade attache of the Iranian Embassy in Russia, told Izvestia.
According to him, the states are studying the use of CFA and digital currencies of central banks.
These options can simplify trade between states and potentially mitigate the effects of sanctions, Rahimi stressed.
While difficulties remain, it is necessary to create infrastructure and regulations for new payment methods, he added.
However, Iran intends to cooperate with Russia to bring these decisions to life, the diplomat noted. According to him, Tehran maintains an effective trade partnership with Moscow.

Why partnership with Iran is important for Russia

Russia’s trade turnover with Iran reached $4 billion in 2023. The majority of Russian exports were food products and agricultural raw materials (81%, or $2.2 billion), said Dmitry Antonov, business ambassador of Delovaya Rossiya to Iran. Another 9% was accounted for by machinery, equipment and vehicles.
Iran, in turn, is ready to supply Russia with food (vegetables, fruits, nuts), military and dual-use equipment, as well as cars, construction materials, medicines and medicines.
Moscow and Tehran have already agreed to connect to each other’s national payment systems (SWIFT analogues) – the Russian SPFS and the Iranian Shetab. However, the use of digital currencies by central banks and CFA is the next important step in cooperation.

How will the launch of new solutions for calculations help

It will take time to implement new calculation methods, Nikolai Dudchenko from Finam stressed. First, we need to prepare the infrastructure and provide a regulatory framework, not only in Russia, but also in the contracting countries. In March of this year, the Russian Federation has already adopted a law that allows the use of CFA in international payments.
A full-fledged launch of new payment systems will prevent the occurrence of such difficulties that are now appearing, for example, with China, the expert believes. With the general friendly policy of the country, some Chinese banks stop making payments with Russian companies due to the risk of secondary sanctions.

source:  https://az.sputniknews.ru/20240502/iran-i-rossiya-prorabatyvayut-zapusk-platezhey-v-tsifrovykh-valyutakh-tsentrobankov-464325109.html

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