Moscow: Iran plans to launch a ruble trading board at its currency and gold exchange center as part of efforts to deepen banking and monetary ties with Russia, Iran's semi-official Fars news agency reported Tuesday. Mohammad Reza Farzin, governor of the Central Bank of Iran, stated that the ruble board would be launched at the Iran Center for Exchange of Currency and Gold following discussions with Russian officials.
According to Anadolu Agency, Farzin mentioned that Iran would also define an 'offshore rial-ruble' and collaborate with Mir Business to establish a separate ruble rate based on trader agreements. He hinted that Iranian businesses could expect positive developments within one or two weeks regarding payment-related issues in trade with Russia. Currently, Iranian bank cards work at ATMs in Russia, facilitating financial transactions.
Farzin revealed that Tehran deposited 1 billion rubles ($13.9 million) into an account held by Russia's second-largest lender, VTB, at the Russian central bank to alleviate a ruble shortage. Iran's Bank Saderat is acting as the agent bank for the project, with Bank Melli expected to join the initiative. Russian cards are anticipated to work in Iran soon, and a third phase planned for next year aims to enable Russian and Iranian point-of-sale terminals to operate in both countries.
Additionally, Farzin noted that Iran and Russia had reached agreements on central bank digital currencies (CBDCs), with Tehran planning to utilize digital currencies in exchange operations. Separately, it was reported that Farzin traveled to Moscow for talks on facilitating monetary exchanges and enhancing cooperation with Russia's central bank.
The report highlights that a planned ruble-denominated loan from Russia to Iran is awaiting Iranian approval. Meysam Zohourian, a member of the Iranian parliament's Economic Commission, stated that Russia would provide a $20 billion loan in rubles at a 6% interest rate. Despite Russia's intention to pay the first $1 billion installment during the war, Iranian officials are still evaluating the benefits of receiving the loan in rubles.
The planned loan surpasses Iran's annual imports of essential goods, valued at $14 billion. Both Russia and Iran are seeking to deepen economic and financial cooperation as they face Western sanctions. Talks on US sanctions relief are anticipated in the coming months, with the planned signing of a US-Iran memorandum of understanding on Friday.