The agreement between the central banks of Russia and Iran is another step in the process of de-dollarization of the world economy. Under the agreement, 52 Iranian banks will be linked to 106 Russian banks. The use of the Ruble and Rial accounts for more than 60 percent of trade between the two countries, avoiding Western sanctions and solving trade problems between the two countries.
The central banks of the two countries are working to introduce a common trade currency to replace the US dollar. This would be a digital currency backed by gold. With these measures, Russia has become the largest investor in Iran, accounting for 45 percent of total foreign investment. Russia invests in energy projects, railroads, automobile manufacturing and agriculture.
All this is part of the agreement reached by Russian President Vladimir Putin and Chinese President Xi Jinping in Samarkand in September 2022, aimed at strengthening of the multipolar world. Putin’s talks with Iranian President Ebrahim Raisi in Samarkand were based on a deep rooting joint strategy between the two countries.
Russia and Iran’s plans are embedded in the framework of the “Eastern Axis” which privileges the regional states of Russia, China, India, and Central Asia.
The global dimension of this trend is associated with the formation and strengthening of the BRICS. In 2023, they will deepen the development of their mutual financial payment systems and their own reserve currency. There are at least 13 confirmed candidates to join BRICS, including Argentina, Iran, Saudi Arabia and Indonesia.
Brazil’s proposal to create a common South American currency is along the same lines. This currency, called Sur, is intended for trade between the countries of the region, starting with Argentine and Brazil.
A South American central bank is to be established, based on Brazilian reserves.
All of this strengthens the international process of de-dollarization of international trade and weakens US economic dominance on the world stage. The struggle to create a multi-polar world parallels the de-dollarization process of world trade. •
Source: https://www.pagina12.com.ar/525406-la-desdolarizacion-avanza-en-el-mundo of 20 February 2023
(Translation Current Concerns)
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