Iran to use own rial in int'l transactions

Iran has started discussions with other countries concerning the use of its national currency in international transactions, an Iranian official says.

According to the head of Iran's Bank Melli (BMI), Iran's Central Bank and BMI have entered into negotiations with some countries and international banks regarding the use of the Iranian rial, the official currency of Iran, in international transactions and operations.

"Some countries have agreed to use the Iranian rial for payment in some transactions," said Mahmoud Reza Khavari, President and CEO of Bank Melli Iran, who also heads a coordination council between the CEOs of Iranian banks, in an interview with Mehr news agency published on Sunday.

The move comes as the country reduces the US dollar in its currency basket, replacing it with other currencies such as the euro.

Since October 2007, Iran has received 85 percent of its oil revenues in currencies other than the US dollar. The country continues to express its determination to find a substitute for the US dollar for the remaining 15 percent of its oil revenues.

The declining value of the dollar and persisting economic crisis in the US has forced many countries to drop the currency in favor of a currency which is more stable.

Saudi Arabia, South Korea, China, Venezuela, Sudan and Russia have taken steps to replace the US dollar in their foreign exchange reserves.