Iran's Tehran Stock Exchange launched Tuesday trading in the Iranian rial and Russian ruble, Iranian state-run news agency IRNA reported.

According to the agency, some two million rubles were traded in the Iranian stock market on Tuesday with a ratio of 5,390 rials per ruble.

Iranian Central Bank Governor, Ali Saleh Abadi, indicated that trading with domestic currencies in the foreign exchange market will further strengthen economic relations with Moscow.

Saleh Abadi explained that this move would exclude the role of other foreign currencies such as the US dollar and euro in the Iranian market.

This comes after Russian President Vladimir Putin visited Iran on Tuesday.

During his meeting with Iranian President Ebrahim Raisi, Putin said the relations between the two countries have been developing at a good pace while making significant contributions to peace settlements in Syria, in addition to bilateral trade being at record highs. 

"We can boast of record figures in terms of trade growth. We are strengthening our cooperation on international security, making a significant contribution to the settlement of the Syrian crisis," Putin said during the meeting.

Peskov: Russia, Iran will eventually abandon US dollar

Earlier, Russian Presidential Spokesperson Dmitry Peskov said Russia and Iran will with time abandon the use of US dollars as they contemplate bilateral trade. 

"We all know that trade and economic relations between the two countries slightly exceeded four billion US dollars last year, although it may be wrong to count it in US dollars, and over time, we will probably move away from this practice as we develop our cooperation in the banking financial sector," Peskov said while addressing Putin's visit to Iran. 

Peskov noted that Moscow and Tehran are friends and reliable partners. 

Furthermore, the official said net trade between Russia and Iran grew 31% over the last few months, describing an upward trend in sales.

Similarly, Kremlin aide Yury Ushakov had said in a statement that "Iran is an important partner of Russia, relations are of a friendly nature, have a long history, and are developing very effectively in the widest range of areas. Both sides have plans to bring bilateral cooperation to a new level — the level of strategic partnership. A new interstate agreement is being prepared.”