There was news that Russia and Iran were combining their national payment systems. The incident was announced in response to pressure from Western partners’ sanctions. Russia is “heading east”, thereby making life easier in the current crisis.
The issue was first discussed at a meeting of the joint directorates of the Russian-Iranian Intergovernmental Commission on March 24. Iran’s top diplomatic envoy to Russia said the procedure for integrating domestic payment systems between countries has been launched. In this way, Moscow and Tehran are able to minimize the impact of sanctions by developing mutually beneficial cooperation.
Countries concluded in connection with the disconnection of Mir and Shetab payment systems from the world’s monetary relations system. Visa and MasterCard refused to operate in Iran and Russia. Several banks were sanctioned for transferring information and paying Swift and cutting ties with the international system. Iran faced such a problem 20 years ago, during which time it turned fully to its independent payment system. A new phase in the formation of the domestic economic system between Tehran and Moscow is in the completion phase, the completion of the merger will be informed in addition. Sources claim that we are talking about the last quarter of 2022.
Mir’s payment system was created in 2014 as an alternative financial configuration, exploiting which would remove restrictions if banks disconnected from swift’s international system. Since the beginning of 2015, the company has introduced the “National Payment Card System” in bulk. These cards became compulsory for anyone receiving social payments and working in the budget. The measure aims to protect the interests of the population.
“Shetab” was developed in 2002 in response to the Western boycott policy. The country was interrupted by the international payments system, no bank could work. Camel solved the country’s financial problems without attracting foreign aid. Iran’s banking system unit supports a wide range of transactions such as cash withdrawals, electronic purchases, transfers of funds, bill payments and balance requests at ATMs and terminals. According to Iran international payments website pay98.cash, special attention has been paid to improving security in the system and tracking irregular transactions.
Why do Russia and Iran need to unite national payment systems?
Russia and Iran have decided to merge their national payment systems for a number of reasons. The most important ones are designed to simplify the lives of governments. The insularity of the two countries’ participation is aimed at positively impacting the economies of the two countries. The integration of national payment systems will develop development cooperation that takes into account the characteristics of the two countries and focuses on meeting the needs and requirements of the population.
The practical benefits of unique concrete cooperation in this direction will contribute to achieving the common prosperity and independence of Western partners. Iran and Russia are set to completely switch to settlements in national currencies, thereby abandoning the dollar.
The two self-sufficient and developing countries ensure equal participation in economic affairs. The association will create an open and fair trading system, improve existing banking systems of governments. Sustainable development and integration into Russia and Iran’s national payment systems are aimed at effectively resolving the global task of minimizing the impact of sanctions.
Full-fledged assistance will definitely strengthen cooperation in other areas as well. These countries are actively forming partnerships in the oil industry and announcing the opening of refineries in the near future. Negotiations are underway on replacing imports of European clothing brands. Implementing joint initiatives and increasing investment in supporting the economic growth of the two countries actively promotes the interests of governments and helps strengthen foreign economic ties.