May 10, 2024
Tehran and Moscow have signed an agreement to totally eliminate the US dollar from their bilateral trade, the Central Bank of Iran announced. The two countries have made numerous announcements in recent years about reducing their use of the dollar, but this announcement is supposed to lead to the complete elimination of the dollar.
Iran has presented the development as a great triumph by the Islamic Republic over the United States and as inflicting a great defeat on the dollar. Actually, however, the US has for years sought to deny the Islamic Republic all access to the dollar. And by virtue of sanctions imposed on Russia after its invasion of Ukraine, Washington has also tried to deny Russia access to the dollar.
So, the new agreement actually shows the two countries bowing to US policy. The Central Bank of Iran did not say if private traders would have any option to use other currencies if they wished.