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No more bucks for Iranian-Russian trade
Published: 10 January, 2012, 18:33
TAGS: Russia and the global economy, Finance
The American dollar will no longer be used in trade between Iran and Russia, and will be replaced by their national currencies in bilateral trade.
According to the Iranian Ambassador to Moscow, Seyed Reza Sajjadi, the proposal to switch to the rouble and the rial came from Russian President Dmitry Medvedev at a meeting with Mahmoud Ahmadinejad, during the Shanghai Cooperation Organization summit in Kazakhstan.
The move follows sanctions imposed by the European Union, the U.S. and the United Nations against Iran over its nuclear program. The Islamic Republic has already replaced the dollar with national currencies in its oil trade with India, China and Japan.
“I think it’s relatively positive for the Russian currency, actually as for any currency which is used when bilateral contracts are enumerated in this currency”, says Evgeniy Nadorshin, chief economist of JSFC Sistema.
“This was expected taking into account that the United States can no longer support the stability of its own currency. That’s the major problem… Many countries are switching to more stable currencies, to make it more comfortable for them to fulfil trade obligations. And this trend will continue”, he added.
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2 comments
Russian business pessimistic about prospectsAmong the BRIC countries Russian businessmen are the most pessimistic about the national economic outlook. |
MEJanuary 11, 2012, 01:41 said:
"Kangaroo, I wipe my rear with your Dollar and Pound, everyday, few times a day, matter of fact.and it does a crappy job, worse than cheap paper can do."
Becareful, before wiping check the notes, because a lot of them are fresh from printer and the ink still wet which could cause health hazard.
The future strong currencies are going to be the ones backed by commodities. The only thing backing the dollar is hot air, sad to say. I don't blame Iran for trying to do some business in currencies other than the dollar. They join Russia, China, Japan, and even Brazil. The list of countries will only lengthen, I'm afraid. The b*****s in Washington DC are driving this country straight into a brick wall.
One more reason for US to attack Iran. When Saddam Hussein announced that Iraq will trade on euro base his country was attacked and occupied by in a year time.
US lives on printing money quite well, but it can do it until its money is accepted even when its products aren’t present. Trade and economy cannot be dissected from politics. Russia must help Iran as a partner to keep its integrity and sovereignty.