The battle against the dollar!


[An IRIB report about Iran-Russia efforts to minimize role of dollar in their transactions.]

The reporter says: Cutting dollar’s share from global transactions will disarm the U.S. This is the view of many economic senior analysts in Russia after the recent meeting of Iran’s supreme leader with the Russian president in Tehran, in which the supreme leader underscored the anti-sanction effect of eliminating dollar from financial transactions.

–Iran and Russia are both under U.S. sanctions, and they can do their transactions with their national currencies with exact planning and signing foreign currency and customs agreement. This monetary treaty can be put into effect on even a larger scale and with the participation of more countries, and will severely weaken the dollar.

The reporter adds: More than 80% of foreign currency transactions within Swift or interbank global system is based on the dollar. And a major part of non-dollar transactions is also impacted by a dollar in their transaction circulation. It is this requirement that is used by U.S. Treasury Department to impose sanctions and put pressure on countries.

–Iran and Russia have done extensive efforts to lessen the impacts of U.S. sanctions. And this joint monetary treaty can accelerate these efforts. But this issue necessitates the creation of a joint bank between the two countries. And the volume of transactions between the two countries must reach to about $10 billion. In that case, reducing the power of the dollar is absolutely possible.

Reporter concludes: Many believe that any effort to reduce the share of the dollar in global transactions is a step towards reducing the dependence of financial institutes on the circulation of the dollar. Analysts of economic affairs consider bilateral or multilateral monetary treaties as an effective measure with the anti-sanctions effect that can reduce the share of the dollar in global transactions, taking away this weapon from Americans.

Ali Darabi, IRIB news agency, Moscow