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Iran to ditch using US dollar from trade and economic transactions

The Iranian Deputy Foreign Minister Ali Bagheri Kayani, has confirmed that Iran is planning to abolish the use of the dollar in commercial transactions like other BRICS members.

Economic and financial developments within BRICS have already begun to move in this direction.

During an interview with a Russian “Novosti” correspondent Bagheri Kayani said, “Within this organization, we have many planned tasks and joint work with other members of BRICS.”

“One of the most important actions was to stop using the dollar in commercial and economic transactions and financial cooperation. We hope to strengthen and develop these actions in order to implement this mission as soon as possible,” he added.

Iran and Russia have recently reached an agreement to trade in their local currencies instead of the US dollar, according to Iran’s state media on Wednesday.

“Banks and economic actors can now use infrastructures including non-SWIFT interbank systems to deal in local currencies,” state media reported.

The US dollar value is expected to witness its worst year since the start of the pandemic.

Economists anticipate the Federal Reserve to lower interest rates during 2024, following price controls and tremendous losses against the backdrop of price volatility as a consequence of premature attempts and demands to end the cycle of raising interest rates carried out by the Federal Reserve.

The spot dollar index also fell by about three percent, the largest annual decline for the US currency since 2020.

The dollar is also predicted to continue to decline in 2024 in light of weak US economic data.

The decline, however, will not be large enough to increase demand for safe haven assets, such as the greenback.

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