Introduction
Have you ever wondered why more and more countries are beginning to 'de-dollarize'? The cooperation between Russia and Iran is a perfect example! They not only successfully achieved mutual access to their currencies but also stirred up quite a wave in the international economy. Want to know the deeper reasons and impacts behind this? Keep reading to explore!
De-dollarization of Russia-Iran cooperation
As early as 2022, Russia and Iran began discussing economic cooperation. Both sides realized that continuing to use the dollar for international settlements under Western sanctions posed significant risks, so they decided to switch to using their own currencies for mutual settlements and signed a series of financial cooperation agreements. After a year of adaptation, the banking networks of Russia and Iran have officially connected, allowing users to not only use Russian bank cards within Iran but also to use Iranian bank cards at ATMs in Russia to receive funds in rubles.
All these events undoubtedly bring new changes to the world economy. Although the current economic scale of the two countries cannot truly confront the dollar economy, their cooperation holds significant promoting meaning and may have far-reaching effects. The cooperation between Russia and Iran demonstrates the necessity of 'de-dollarization'. Previously, countries used the dollar for international trade settlements, effectively handing over their economic fate to the United States. By settling in their own currencies, countries can gain more autonomy in controlling their economic fate, reducing the impact of external shocks, and achieving stable development.
The financial cooperation between Russia and Iran provides a reference for other countries. Many nations have gradually realized during their confrontation with the United States that abandoning the dollar is the best choice for maintaining their own security and economic interests. For example, the continuous warming of China-Russia relations in recent years is closely related to the two countries' cooperation in 'de-dollarization' in the economic field. The Eastern powers and Russia have repeatedly stated their intention to reduce dependence on the dollar in bilateral trade, and oil transactions between China and Russia have quietly shifted to settlement in RMB.
Moreover, as a major power in the world economy, if the Eastern powers can take the lead in advancing the pace of 'de-dollarization' and weaken the dollar's hegemonic status in the international economy as much as possible, it will not only maintain their own security and economic interests but also set an example for other countries, encouraging more nations to participate and jointly promote the diversified development of the global economy.
Clearly, this financial cooperation between Russia and Iran is developing in this direction. According to the Governor of the Central Bank of Iran, the connection of the two countries' banking networks is an important step in the economic cooperation of 'de-dollarization', which not only promotes economic trade between the two countries but is also conducive to the development of regional economic integration.
Potentially far-reaching impact
As more and more countries join the 'de-dollarization' movement, the dollar's status in the world economy may face unprecedented challenges. Although it is currently hard to imagine what the world economy would look like without the dollar, it is certain that it would be a fairer and more diverse world. In the past, the U.S. could sanction anyone it wanted, using the dollar as a weapon to hit its opponents. Now, this approach may backfire; as more countries choose to abandon the dollar, the U.S. will no longer be able to maintain its hegemonic status in this way.
For Russia and Iran, abandoning the dollar for settlements is an effective means of jointly resisting sanctions from the Western countries. For years, the U.S. has imposed severe economic sanctions on Iran, attempting to collapse its economy through sanctions to achieve regime change, while the sanctions on Russia are mainly focused on its financial and energy sectors. However, it is clear that the U.S. plan has not succeeded. On the contrary, after facing sanctions, Iran and Russia chose to band together, and their deepening financial cooperation is the best proof of this. The connection of their banking networks is an important step in the 'de-dollarization' process, but it is clearly not the endpoint. In the future, the two countries are likely to engage in deeper cooperation across multiple fields, including economics and military.
Conclusion
The financial cooperation between Russia and Iran indeed brings new speculations to the world economy. In the face of the challenge of dollar hegemony, more and more countries realize the importance of independently controlling their economies. This trend may change the global economic landscape. What do you think about the future of 'de-dollarization'? Feel free to share your views in the comments section, and don't forget to like and support us!