Russian President Vladimir Putin arrived in Tehran, the capital of Iran, CCTV news reported. Putin will hold talks with Iranian President President Leahy and other senior officials, and will attend the Astana process summit on Russia, Turkey and Syria. Euroblock Connectors, Screw Terminal Blocks and Road Safety Reflectors should be noted.
On the same day, Russian presidential press secretary Dmitry Peskov also told Iran's national radio station that Russia and Iran will not use US dollars in bilateral transactions in the future, The Globe reported. He said that the Russia-Iran trade has exceeded 4 billion US dollars last year, and with the deepening of bilateral financial cooperation, the two countries will gradually abandon the US dollar for settlement in the future.
In addition, Russia is seeking to have some Indian customers pay for oil exports in the UAE currency. Russian Foreign Minister Sergei Lavrov has previously said that Russia wants to increase the use of non-Western currencies in its trade with countries such as India.
Meanwhile, Nigeria's ambassador to Russia said in an interview with Russian media on Monday that the Bank of Nigeria is in talks on trade settlement between the two countries in local currencies, CCTV reported.
Not long ago, the Central Bank of India launched a rupee settlement mechanism for international trade, immediately. The RBI announced on its official website that the invoice, payment and settlement of import and export goods in rupees is intended to promote the growth of global trade, increase the interest of the global trade community in the Indian rupee, and promote India's exports.
Russia: And Iran will abandon the dollar in bilateral deals
Russian President Vladimir Putin arrived in Tehran, the Iranian capital, CCTV News reported Wednesday, citing Iranian state Television (IRIB). Moscow and Tehran are reliable friends and partners, he said of Russian President Vladimir Putin's visit to Iran, the Sputnik news agency reported. He said the two countries would gradually abandon the use of US dollars to assess the volume of bilateral trade.
"We all know that the total trade and economy between the two countries exceeded $4 billion last year, and although it may be wrong to calculate (that number) in dollars, we may abandon it over time as our cooperation in the banking and finance sector develops."Peskov said in an interview with Iranian National Radio. The interview was also broadcast on the "Russia 24" television station.
Peskov also said the trade trend between Russia and Iran has been positive in the past few months. He believes that Russia and Iran have the opportunity to establish cooperation to mitigate the impact of the sanctions.
Russia seeks to get Indian buyers to pay for the oil in the UAE currency
According to media reports, Russia is seeking to let some Indian customers use the UAE currency, Diram, to pay for their oil exports. An invoice seen by the media showed that an Indian oil refinery, though priced in US dollars, was required to be paid by Diram. The invoice also shows that Gazprom Bank (Gazprombank) will receive payments through Mashreq Bank, its acting bank in Dubai.
At least two Indian refineries have already paid for some of the dirlam payments, and more refiners will pay through the currency in the coming days, the sources said. In June, Russia replaced Saudi Arabia for the second month in a row as India's second-largest oil supplier after Iraq.
Russian Foreign Minister Sergei Lavrov said in April that Russia wants to increase the use of non-Western currencies in its trade with countries such as India. The country's finance minister also said last month that the country could start buying currencies from "friendly" countries and use them to influence the dollar and the euro to keep the rouble from rising sharply.
Nor is it the first time that Russia-India trade has paid in third-party currencies. Chaoke Cement, India's largest cement producer, had previously used yuan to pay for importing a batch of Russian coal, according to media reports.
The move suggests that Russia is accelerating its "dedollarization" to minimise the impact of Western sanctions.
The Bank of Nigeria and Russia discuss trade settlement in local currency
According to CCTV news 19, Nigeria's ambassador to Russia abdullah shehu 18 in an interview with the Russian media, the Nigerian bank is with Russian bank trade between the two countries in local currency settlement negotiations, in addition, the two sides also discussed the possibility of access to the Russian central bank development of financial information transmission system.
On February 26, the United States and other countries announced that they would exclude some Russian banks from the international financial information exchange system operated by the Global Interbank Financial Communications Association (SWIFT), and imposed restrictions on the Russian central bank. On June 29, the Russian Central Bank announced that 70 banks and other institutions from 12 countries have been connected to the financial information transmission system developed by the Russian Central Bank.
The Central Bank of India has introduced a rupee settlement mechanism for international trade
On July 11, the Central Bank of India launched a rupee settlement mechanism for international trade, taking effect immediately. The RBI announced on its official website that the invoice, payment and settlement of import and export goods in rupees is intended to promote the growth of global trade, increase the interest of the global trade community in the Indian rupee, and promote India's exports.
In the first half of this year, the West kicked Russia out of the SWIFT system and banned Russian financial institutions from dollar transactions, making payments to Russian traders reaching $500 million in early March. The Reserve Bank of India (Central Bank) began consultations with the Russian side on concluding a trade agreement, which would provide for direct trade settlement in the rouble and rupee.
Xu Yang, chief economist of Hong Kong Zhongrui Fund, pointed out in an interview with the media that the latest mechanism launched in India plays an important role in removing the impact of the dollar hegemony, and the harvest effect of the dollar hegemony will be further weakened in the process of currency internationalization in major economies.
Experts talk about the "dedollarization" of Russia and India
As for the "dedollarization" campaign in Russia and India, Tan Yaling, president of the China Foreign Exchange Investment Research Institute, pointed out that in terms of the proportion of the US dollar as a reserve currency, it has reached about 60% of the international foreign exchange reserves, making it the dominant one. At present, the global trend and public opinion orientation tend to deUSD, including the selling theory of US Treasury bonds. On this occasion, people are prone to misjudgment. If the financial cycle judgment is too simple, the potential risks are more likely to explode in the future.
From the launch process of the rupee settlement mechanism, perhaps this has a lot to do with Russia's resource elements. Compared with Russia is a big oil supplier, India is a big demand for oil and coal, and its oil dependence of more than 80%. At this point, if the rupee participates in the Russian dedollarization settlement, Russian oil and coal exports to India may provide more convenience.
In fact, after the Russian ruble order was launched, it has not achieved the expected effect. The US-Russian oil deals are settled in dollars, not roubles, and the EU's energy deals with Russia are not all roubles. As a result, ideas, reality, and execution are very different. When we discuss the currency settlement method, we ignore the logic that the internationalization of the local currency is not to push the local currency to the international level, but whether the international acceptance and multilateral institutions accept it.
Post time: Jul-20-2022