In a major blow to the US Dollar’s dominance in global trade, Iran and Russia have finalized a deal to use their local currencies for bilateral transactions. The agreement, which was announced by the Iranian central bank governor on Monday, aims to boost trade and economic cooperation between the two countries, while reducing their reliance on the US currency.
The deal is part of a broader strategy by Iran and Russia to counter the US sanctions that have crippled their economies and hampered their access to the international financial system. By using their own currencies, the Iranian rial and the Russian ruble, they hope to avoid the risks and costs associated with exchanging dollars in third-party countries.
The deal also reflects the growing alignment of interests between Iran and Russia, who have been cooperating on various fronts, including the Syrian civil war, the nuclear deal, and the regional security. Both countries view the US as a hostile and destabilizing force in the Middle East and beyond and seek to challenge its hegemony and influence.
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The deal is expected to have significant implications for the global trade and monetary system, as it could encourage other countries to follow suit and diversify their currency reserves away from the dollar. This could undermine the dollar’s status as the world’s reserve currency, which gives the US a unique advantage in international trade and finance. The dollar’s dominance also allows the US to impose sanctions on other countries by cutting off their access to the dollar-based system.
The deal is likely to face opposition and criticism from the US, which has been trying to isolate Iran and Russia from the global economy. The US has imposed several rounds of sanctions on both countries over their nuclear and military activities, as well as their human rights violations and support for terrorism. The US has also warned other countries not to do business with Iran and Russia, threatening them with secondary sanctions if they violate the US rules.
The deal is a clear sign of defiance and resistance by Iran and Russia, who have shown that they are not willing to bow down to the US pressure and demands. The deal is also a testament to their resilience and creativity in finding ways to circumvent the US sanctions and maintain their economic ties. The deal is a historic milestone in their bilateral relations, as well as a challenge to the US Dollar’s supremacy in global trade.
