Iran to launch ruble trading board as central bank chief visits Moscow

Iran plans to launch a ruble trading board at its currency and gold exchange center as part of efforts to deepen banking and monetary ties with Russia, Iran's semi-official Fars news agency reported Tuesday.

Mohammad Reza Farzin, governor of the Central Bank of Iran, said the ruble board would be launched at the Iran Center for Exchange of Currency and Gold following talks with Russian officials, according to the report.

Farzin said Iran would also define an “offshore rial-ruble” and work with Mir Business to establish a separate ruble rate based on agreements among traders.

He said Iranian businesses could hear “good news” within one or two weeks on resolving payment-related issues in trade with Russia.

The central bank chief said Iranian bank cards currently work at ATMs in Russia

He added that Tehran deposited 1 billion rubles ($13.9 million) into an account held by Russia’s second-largest lender, VTB, at the Russian central bank to help ease a shortage of rubles.

Farzin said Iran’s Bank Saderat is serving as the agent bank for the project, while Bank Melli is also expected to join the initiative.

He added that Russian cards would later work in Iran, while a third phase planned for next year would allow Russian and Iranian point-of-sale terminals to operate in both countries.

Farzin also said Iran and Russia had recently reached agreements on central bank digital currencies, or CBDCs, adding that Tehran would seek to use digital currencies in exchange operations.

Separately, Fars reported that Farzin traveled to Moscow on Tuesday for talks on facilitating monetary exchanges and strengthening cooperation with Russia’s central bank.

The report came as Russia’s planned ruble-denominated loan to Iran had been awaiting approval from the Iranian side, Fars said.

Meysam Zohourian, a member of the Iranian parliament’s Economic Commission, told Fars that Russia would provide Iran with a $20 billion loan in rubles at a 6% interest rate.

According to Zohourian, Russia had sought to pay the first $1 billion installment of the loan during the war, but Iranian officials were still assessing whether receiving the loan in rubles would be beneficial.

Fars said the planned loan would exceed Iran’s annual imports of essential goods, which it put at $14 billion.

Russia and Iran have moved to deepen economic and financial cooperation as both countries face Western sanctions.

Talks on US sanctions relief are expected in the coming months, following the planned signing of a US-Iran memorandum of understanding on Friday.