Iran’s top security official, Ali Shamkhani, has said that the country’s bilateral cooperation with Russia is rendering US-imposed sanctions useless on a global scale. Shamkhani noted that many other countries are also abandoning the US dollar, which is contributing to the de-dollarization movement. Speaking to Russian officials, Shamkhani explained that recent monetary and banking advancements between Iran and Russia are crucial in “dooming the illegal Western sanctions to failure.” He also referred to other de-dollarization movements around the world, indicating that many other countries have started to follow this path.
Iran has been facing US sanctions since 1979, which were lifted between 1981 and 1987, only to be re-enacted and maintained ever since. The US has imposed sanctions on Iran to pressure the country to abandon its nuclear programme. The two countries, which are two of the most sanctioned nations by the US in the world, are on the verge of finalizing a comprehensive strategic agreement that would further advance the integration between their economic systems, turning aside from the Western influence and the clout of the US dollar in their trading operations.
The continued enactment of sanctions, as well as the need to trade for goods that cannot be imported due to restrictions, has brought Iran and Russia closer together. There are not many companies or entities willing to risk facing secondary economic sanctions, so they choose to cut ties with Russia and Iran, even abandoning lucrative deals. The latest round of sanctions applied to Iran on March 2 is directed at several international companies accused of being involved in the transport or sale of Iranian oil and petrochemicals.
To facilitate trade between Russia, Azerbaijan, Iran, and India, and to open up possibilities of accessing Central Europe, the two nations are working to establish the International North-South Transport Corridor, a multilateral corridor consisting of more than 7,200 km of roads, rail, and sea communication links.
The establishment of sanctions and the weaponisation of the US currency have been recently criticised for their negative effect on the status of the US dollar as a reserve currency. Renowned economist Jeffrey Sachs recently stated that other countries fear the confiscation of their dollars if they get into a policy disagreement with the US. Economist and author of “Currency Wars,” Jim Rickards, has also called out the behaviour of the US Treasury in this regard, stating it was the greatest enemy of the dollar as a reserve currency.
The de-dollarization movement has been gaining momentum in recent years, with many countries seeking to reduce their dependence on the US dollar. The movement has been driven by a number of factors, including concerns over the US’s use of sanctions as a foreign policy tool and the desire to reduce exposure to the US economy. The use of the US dollar as a reserve currency has also been criticised for contributing to global economic imbalances.
In conclusion, Iran’s ongoing de-dollarization efforts and bilateral agreements with Russia are contributing to rendering US-imposed sanctions useless on a global scale. The two countries are working towards establishing the International North-South Transport Corridor to facilitate trade and reduce their dependence on the US dollar. The de-dollarization movement is gaining momentum around the world, with many countries seeking to reduce their exposure to the US economy and reduce their dependence on the US dollar as a reserve currency.