Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of
BRICS while Iran will join in the Jan 2024.
Now
news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?
It will definitely have certain impact on US dollar. The impact will be great on those countries who will be importing oil using their local currency. Honestly I believe, there should not be one single currency to rule the international trade. That gives too much power to a specific country and give them and upper hand to start war at any part of the world. So if two major oil exporters start taking local currency against their oil, it will reduce the dependency on the US dollar. A great first step towards global peace, maybe!
More and more oil exporting countries need to join the band wagon.