Iran and Russia have successfully bypassed SWIFT by connecting their financial messaging systems, enabling direct transactions between their banks, announced Mohsen Karimi, Deputy Head of the Central Bank of Iran for International Affairs.
"We have integrated the financial messaging systems of the two countries. This means that the banks from both nations no longer require Switzerland as an intermediary for communication, allowing commercial banks on both sides to establish direct relations with each other," Karimi explained.
He emphasized that this development enables exporters from both nations to conduct transactions in their national currencies. For example, an Iranian exporter can issue an invoice in rials to the Russian side, and Russian banks in Iran can make the corresponding payment.
This strategic move comes as part of an effort to strengthen economic ties between Iran and Russia. Recently, Hosein Ayvazlu, a member of the executive board of the National Development Fund of Iran, disclosed plans for joint investment committees between the sovereign wealth funds of Russia and Iran. These committees aim to implement projects across various sectors, including oil and gas, petrochemicals, pharmaceuticals, and more.
In late December, Mohammad Farzin, Head of Iran's Central Bank, announced plans to sign a currency agreement with Russia in the first quarter of 2024. The agreement would facilitate trade in rubles and rials. During a meeting with the Head of the Bank of Russia, Elvira Nabiullina, in Moscow, it was agreed to open a credit line worth 6.5 billion rubles for Iran to import necessary goods from Russia. This move came after the US Department of Justice reinstated sanctions against Iran, and the Central Bank of Iran reported that Iranian bank Sepah had opened the first foreign letter of credit for importing goods from Russia.
GSV "Russia - Islamic World"
Photo: Federation Council
Based on materials from RIA Novosti