10/01/2024

Countries have connected their financial messaging systems. So now banks can carry out transactions directly, without using SWIFT.

 

SWIFT is an international interbank system for transmitting information and making payments. But due to sanctions, it is not available to either Russia or Iran.

So it was necessary to reconfigure banking and foreign economic systems so that payments between countries could proceed quickly and safely.

Now trade turnover will be easier. Exporters will be able to conduct transactions in national currencies. That is, issue an invoice and receive money for it in Iran from Russian banks. Or, conversely, receive money from Iranian banks in Russia. Now it is possible, and, most importantly, simple.

What are the advantages?

You don't have to look at the dollar exchange rate. That is, the risks are reduced that by the time the money arrives, the exchange rate will change significantly. In addition, national currencies are used. It's simple, no additional exchanges required. Naturally, simplification of the settlement system will have a positive effect on trade.

 

What does Russia supply to Iran?

Metals, fertilizers, chemical products, wheat, corn.

 

What does Russia import from Iran?

Cars and their components, fabrics, vegetables, fruits.

 

Conclusion

The simpler the payments, the easier it is for a business to conduct transactions. Considering that by March 2024 Russia and Iran must cancel duties on goods imported from these countries, this will have a positive impact on trade turnover.

In 2023, it exceeded $5 billion. The abolition of SWIFT and the simplification of money transfers will encourage Russian companies involved in logistics and international trade to increase the number of transactions with Iran.
In addition, Iranian products have won the love of buyers in the Russian Federation. And if prices decrease (thanks to fast money transfers without SWIFT and the elimination of duties), then there will be much more buyers.

In addition, the ability of banks in two countries to conduct settlements directly may encourage other countries with which Russia trades to also switch to such a system.