Iran poised to ditch dollar in trade with Africa

The Islamic Republic says settlements in local currencies will pave way for a broader cooperation with African nations

Iran has suggested the establishment of a joint bank with African states to help develop cooperation and to promote trade in local currencies.

Speaking on Monday at a conference on scientific and economic cooperation between Iran and West Africa, Iranian Vice President for Economic Affairs Mohsen Rezaei highlighted the importance of multilateral cooperation.

He said that Tehran could give a boost to many advanced industries in West Africa while the creation of a joint bank with settlements in local currencies would facilitate trade.

“In this situation we would be able to conduct commercial deals between the countries… without the necessity of [using] dollars and euros, and all sides will benefit from it,” Rezaei explained.

He noted that African nations have managed to achieve independence after centuries of colonization and now need to build strong economies in order to regain their international status.

Earlier this week, Iranian President Ebrahim Raisi said during a meeting with a group of African officials that the Islamic Republic was willing to share its technological achievements and to facilitate the engagement of private companies in various projects in Africa.

Trade between Iran and African countries reached $992.77 million from March to October 2022, where Tehran’s exports comprised a bulk of the turnover, recent data from Iranian Customs shows. Iran exported just over $933 million worth of goods to the African continent during that period.

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