The Central Bank of Iran is planning to hold an event in Tehran to discuss international monetary relations and de-dollarization, the CBI deputy for international affairs, Mohsen Karimi, said.
"The central bank seeks to curb reliance on the US dollar and create effective monetary transactions and currency swap contracts with other countries," Karimi was quoted as saying by the CBI website.
Elaborating on CBI strategy for expanding bilateral currency exchanges and reducing dependence on the greenback, he said, "Talks are underway with several countries over ditching the USD in bilateral trade…We have made considerable progress in some cases." He did not elaborate nor name the countries.
He recalled the tremendous benefit that the United States has enjoyed as a result of the dollar's international reserve currency status, and the political misuse of it against other countries.
"Independent countries are distancing themselves from the dollar and seeking to de-dollarize their economies to reduce the risk of US sanctions," Karimi concurred.
"The world monetary and banking system has been dollar-centric for the past 7-8 decades, and important markets, especially the energy market, have been based on that currency. However, the use of other currencies or local currencies carries its own risks and uncertainty that central banks need to anticipate and hedge against.”
He emphasized that monetary contracts have no fixed conditions and differ subject to the economic and monetary conditions of countries. "As a country that has been subjected to oppressive sanctions for years, we must engage in bilateral currency exchanges to avoid [further] economic damage," he said.