Iran’s state-run news agency IRNA reported on May 24 that governors of the central banks of Iran and the Russia have emphasized strengthening trade exchanges and using their national currencies in bilateral trade.

During a meeting with Chairperson of the Central Bank of Russia Elvira Nabiullina on May 23, the Central Bank of Iran chief Mohammad Reza Farzin reportedly emphasized the need to increase banking and monetary exchanges between the two countries.

Farzin, in particular, noted that strengthening and accelerating the development of brokerage relations between commercial banks of Iran and Russia tops the two major banks' agenda.

Referring to the vast commercial capacities and potentials that Iran and Russia have, Farzin further emphasized increasing the banking infrastructure cooperation between the two countries.

Referring to the potential of the Asian Clearing Union (ACU) member nations, Farzin invited Russia to participate in the 51st edition of the ACU summit, which started in Tehran on May 22.  

Nabiullina, for her part, stressed the strengthening of monetary and banking exchanges and the maximum use of the banking infrastructure of the two countries in order to develop trade and economic cooperation.

She reportedly also stated that “the exchange of technical and specialized teams of the central banks of the two countries with the aim of developing and deepening monetary and banking relations are considered important in this regard, which has already been done.”

The Central Bank of the Russian Federation (CBR) is the central bank of the Russian Federation. The bank was established on July 13, 1990.  The predecessor of the bank can be traced back to the State Bank of the Russian Empire founded in 1860.  It is an independent entity, with the primary responsibility of protecting the stability of the Russian national currency, the ruble.

Before September 1, 2013, it was the main regulator of the Russian banking industry, responsible for banking licenses, rules of banking operations and accounting standards, serving as a lender of last resort for credit organizations.  After pointed date functions and powers of CBR were significantly expanded and the central bank received the status of a mega-regulator of all financial markets of Russia.

The Central Bank of Iran (CBI), also known as Bank-e Markazi, is the central bank of Iran.  Established under the Iranian Banking and Monetary Act in 1960, it serves as the banker to the Iranian government and has the exclusive right of issuing banknote and coinage.  CBI is tasked with maintaining the value of the Iranian official currency, the rial, and supervision of banks and credit institutions.  It acts as custodian of the National Jewels, as well as foreign exchange and gold reserves of Iran.  It is also a founding member of the Asian Clearing Union, controls gold and capital flows overseas, represents Iran in the International Monetary Fund (IMF) and internationally concludes payment agreements between Iran and other countries.