BRICS shock: Russia and Iran throw the dollar out-rubles and rial rule!

BRICS shock: Russia and Iran throw the dollar out-rubles and rial rule!

The news that shakes international financial markets: Russia and Iran, two powerful members of the Brics Alliance, have decided to give up the US dollar in bilateral trade! An unexpected U -turn in the trading world, since 96 % of the transactions between these two countries are now taking place in the local currencies rubles and Rial. This marks a massive increase in the use of local currencies by 12.4 % compared to previous years, a step that puts economic relationships between Moscow and Tehran on a completely new basis. Mohammad Reza Farzin, the governor of the central bank of the Islamic Republic, confirmed: "We agreed with Russia and completely removed the dollar."

The decision of the Brics powers of Russia and Iran has far-reaching consequences, especially in view of the economic sanctions that the United States have imposed. The two countries opted for a new strategy: by a currency agreement and the integration of Russia Mir payment system to eliminate the dominance of the dollar. Even ATMs in Russia now spend rials for Iranian citizens. This is a clear train against the structures of the international financial system, including the US-led Swift system, which is now being avoided. The Kremlin seems determined to avoid the US sanctions by encouraging other countries to also do without the dollar.

The era of de-dollarization: a new trade order

While the United States tried to weaken Russia's economy through sanctions, they now resign with full force by questioning the worldwide use of the US dollar. This de-dollarization strategy increasingly attracts the interest of other developing countries that are willing to take part in the "dollar exodus". This could endanger the demand for the US dollar on the world markets in the long term. What will happen if the export of the dollar stagnates? Increasing inflation and living costs could soon become unmistakable for the US consumer! The possibility of such a scenario asks questions about the stability of the current global economic order.