Iranian-Russian Payment Networks Connected: Boosting Economic Cooperation
Iran and Russia have taken a significant step towards boosting economic cooperation by connecting their national payment networks. This integration marks a milestone in the de-dollarization process, facilitating electronic payments and strengthening tourism & trade relations between the two nations.
Removing Borders of Electronic Payments
According to Central Bank of Iran Governor Mohammad-Reza Farzin, the integration of the two countries’ banking subsystems is a big step towards creating integrated economic cooperation in the region. “The project that we are witnessing its inauguration today, started with the aim of creating integration in the payment networks and facilitating financial transactions between the citizens of the two countries,” Farzin emphasized.
A Three-Phase Project
The project has been divided into three phases. The first phase, launched at the end of September, allows Iranian tourists to withdraw Russian rubles from ATMs in Russia using their Iranian bank cards. “In this way, now Iranian tourists can easily receive ruble notes from Russian ATMs using the riyal balance of their Shetab cards,” Farzin explained.
Facilitating Financial Transactions
The connection of the national payment networks is part of a broader effort to strengthen economic ties between Iran and Russia. In early July, a monetary contract was signed between Tehran and Moscow, enabling bilateral trade exchanges in local currencies. The two countries have also signed a memorandum of understanding (MOU) on joint measures to expand economic and monetary ties.
Boosting Mutual Trade
Russia and Iran are advancing their payment network integration. This development will enable Russian citizens to access Iranian ATMs with their bank cards. Similarly, Iranians will be able to use their cards in Russian stores. As a result, mutual trade between the two nations is set to grow significantly. In fact, trade has already been on the rise in recent years. Furthermore, Iran’s late President Ebrahim Raisi announced in late January that both countries agreed to increase bilateral trade to $10 billion. This integration marks a crucial step in strengthening economic ties between Russia and Iran.
Strengthening Economic Ties
Iran’s Finance Minister Abdolnasser Hemmati and Russia’s Economic Development Minister Maxim Reshetnikov met to discuss strengthening economic ties. They addressed various issues, including customs, Russian investments in Iran’s oil industry, and the Rasht-Astara railway progress. Moreover, the ministers explored the North-South Corridor, truckers’ insurance, and trade currency settlement. They also focused on enhancing the Eurasian Economic Union and other bilateral economic matters. Both sides emphasized the importance of bolstering economic cooperation between Iran and Russia. Consequently, this meeting laid the groundwork for future collaboration in multiple sectors.
A Prime Example of Cooperation
In the same day, Iranian President Masoud Pezeshkian said that an agreement to transform Iran into a regional transit and gas hub is a prime example of cooperation between Tehran and Moscow. “We believe that if important joint projects between Iran and Russia are implemented, they will create significant capacities for both countries to counter cruel sanctions,” Pezeshkian said.
Promoting Sustainable Development
The president emphasized the mutual benefits of Iranian-Russian Payment Networks for both nations. He asserted that this partnership promotes regional sustainable development, economic growth, and integration. Additionally, he highlighted the importance of regional cooperation through international organizations like BRICS and SCO. These alliances, he noted, strengthen independent countries such as Iran, Russia, and China. Consequently, the president’s remarks underscored the strategic significance of these collaborations in fostering regional stability and prosperity. Furthermore, this approach aligns with broader goals of enhancing economic ties and political cooperation. Ultimately, the integration of financial systems and increased Trade will contribute to the overall economic resilience of the participating nations. This collaborative effort sets the stage for a more interconnected and prosperous regional economy.
Enhancing Interactions
In response, the Russian prime minister reiterated Russia’s desire to enhance and expand interactions with Iran, particularly in energy, industry, transportation, agriculture, healthcare, and cultural sectors.
In conclusion, connecting the Iranian-Russian payment networks represents a significant step toward enhancing economic cooperation and promoting de-dollarization. As the project unfolds, it will facilitate electronic payments, strengthen tourism relations, and advance economic and cultural collaboration between the two nations.
Source: Tehran Times