BRICS Plus: Russia and Iran only trade in own currencies

By Rhod Mackenzie

Now the banks of Russia and Iran have the opportunity to carry out transactions directly, both countries have connected their systems for transmitting financial messages, Mohsen Karimi, deputy head of the Central Bank of Iran for international affairs, told the Fars news agency.

"We have connected the transmission systems (financial - ed.) of the two countries. This means that the banks of both countries no longer need SWIFT system to communicate with each other, and the commercial banks of both countries can establish intermediary relations with each other. The exporter can set up an account in rials on the Russian side and receive money from it from Russian banks in Iran," the Fars agency quoted Karimi as saying.

He also emphasised that exporters from both countries can carry out transactions in their national currencies.

Earlier it was reported that Russia and Iran had decided to set up national wealth funds, which will help create joint investment committees to implement projects in the oil and gas, petrochemical, pharmaceutical and a number of other sectors.