Iran, Russia and Turkey Likely to Eliminate USD in Trilateral Trade

Iran, one of the largest steel producer in MENA region is currently facing sanctions imposed by US. Post US Sanctions, Iranian economy continues to hit adversely which resulted into depreciation of IRR. Owing to US Sanctions many countries suspended their trade with Iran which resulted to sudden downfall in trade. According to IMIDRO, export by Major Iranian witnessed a downfall of 32% M-o-M.

Recently, Turkey and Russia along with Iran discussed about a possible replacement of the USD by national currencies. It is to be noted that all the three countries are involved into steel trade with each other. Iran is one of the major exporter of billet to Turkey. Whereas both Iran and Turkey are one of the key importers of Russian finished flat steel.

Leaders of all the three countries are bullish about the positive outcome from this discussion. According to Iranian Central Bank Governor Abdolnasser Hemmati, "we have decided to proceed with further work in light of the agreements reached at a meeting with the Russian Central Bank governor in Moscow".

Mr. Hadai Tizhoosh Taban, the president of Iran-Russia Chamber of Commerce, described the trilateral agreement as a "good catalyst" for the businesspeople of the three countries. He said that agreement between Iran, Russia and Turkey can give Iran access to the Eurasian markets with lower tariffs.

According to a trader from Iran, "Currently, a barter agreement is underway with few countries and there is no problem, as long as there is no surplus. Second wave of US Sanctions is likely to hit Iran in November and it is expected to affect banking in Iran. If this trade agreement between these three countries happens then it will definitely ease the dependency on USD for trading.