Dumping the dollar: Iran & South Korea agree cross-currency trade
South Korea and Iran have agreed to switch to national currencies in trade exchanges as the sides aim to strengthen relations despite the US sanctions on Tehran.
The agreement is of great importance to both countries, Yonhap News Agency reported, explaining that the deal indicated Korea’s concerns about relations with Iran.
The countries also agreed to make payments and settle their financial and banking accounts using the South Korean national currency, the won. That will allow South Korean and Iranian companies to continue their extensive exchanges in various fields.
The volume of bilateral trade surpassed the $12-billion benchmark last year, according to Iran’s ambassador to Seoul Saeid Badamchi Shabestari, who told Press TV that the Iranian and Korean economies complement one another.
The fact that Tehran-Seoul relations had been founded on “reality” would keep the countries determined to deepen the ties in the face of America’s “hostile and illegal unilateral actions,” the ambassador said.
Earlier, South Korean Ambassador to Tehran Ryu Jeong-hyun said that despite many European companies leaving Iran under the pressure of US sanctions, South Korean firms understand the significance of the Iranian market and have chosen to stay.
READ MORE: US dollar dominance ‘idiotically’ outsized – economist Jim O’Neill
In response to US sanctions, Iran and its trade partners have been negotiating the reduction of the US dollar's share in mutual trade.
Russia, Turkey, India, Iraq, Qatar, China and others have been actively making steps to switch to national currencies in settlements in order to bypass Washington’s pressure.
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