Iran and Russia have united their interbank systems — Reuters
[ad_1]
Iran and Russia are connecting interbank communication and transfer systems to help increase trade and financial operations, a high-ranking Iranian official said, as Western sanctions hit Tehran and Moscow. Reuters writes about this.
1
►Read the Telegram channel “Ministry of Finance”: the main financial news
Sanctions
After the USA renewed sanctions against Iran in 2018, Iran was disconnected from the SWIFT international money transfer system, which is a key international system for accessing banking services.
Similar restrictions were imposed on some Russian banks after the beginning of the Russian invasion of Ukraine in 2022.
“Iranian banks no longer need to use SWIFT… with Russian banks to open letters of credit, transfers or guarantees,” Deputy Governor of the Central Bank of Iran Mohsen Karimi said in an interview with the local Fars news agency.
Read: Russia and Iran are building a new $25 billion trade route to bypass sanctions
Although the Russian Central Bank refused to comment on the agreement signed on Sunday, Karimy said that “about 700 Russian banks and 106 non-Russian banks from 13 different countries will be connected to this system”, without specifying the names of the foreign banks.
The head of the Central Bank of Iran, Mohammad Farzin, welcomed this step. “The financial channel between Iran and the world is renewed,” he wrote on Twitter.
Since the beginning of the war in Ukraine, Tehran and Moscow have been making efforts to establish close bilateral ties, as both capitals are trying to build new economic and diplomatic partnerships.
“With deepening economic problems, largely due to US sanctions against Tehran’s nuclear activities, many Iranians are experiencing the pain of galloping inflation and rising unemployment.
Inflation soared to more than 50%, which is the highest level in recent decades. The youth unemployment rate remains high, and more than 50% of Iranians are below the poverty line,” writes Reuters.
Read: Trade turnover between Russia and Iran increased to $4.6 billion in 2022
Faced with a crisis against the backdrop of months-long anti-government protests, the Iranian authorities fear that economic isolation and the lack of economic improvement may lead to new unrest.
“In the modern world, a country’s status is largely linked to its economic power… We need economic growth to maintain our regional and global position,” said Iran’s Supreme Leader Ali Khamenei.
Author: 
News feed editor Anna Nedogybchenko. She writes on the following topics: Finance, banks, economy, investments
Source: Ministry of Finance
Views: 5
[ad_2]
Original Source Link
