Iran, Turkey Agree to Use Nat'l Currencies in Trade Transactions

TEHRAN (defapress)- Governor of the Central Bank of Iran (CBI) Valiollah Seif and his Turkish counterpart Murat Cetinkaya in a meeting in Ankara approved the draft of a memorandum of understanding (MoU) to use their national currencies in their transactions.

News ID: 66279

Date: 10 October 2017 - 14:47

Seif and Cetinkaya reached the agreement with the with the aim to facilitate trade with the national currencies of the two countries in order to finance trade and direct investment between the two countries.

Under the terms of the MoU, rial of Iran and Turkey’s lira will be easily converted to each other and the issue will reduce cost of currency conversion and transfer for traders of both sides alleviating the need for other currencies.

In other words, the two central banks will be able to use international payment instruments, including credits and negotiable ones, to finance trade in national and local currencies, as envisaged in the agreement.

Also during the one-day visit of Seif, an agreement was inked between Iran’s CBI on behalf of the government and the EBA Economic Development and Trade Bank. The signing ceremony was attended by senior banking officials from both countries.

In a relevant development in September, Iranian President Hassan Rouhani in a meeting with his Turkish counterpart Recep Tayyip Erdogan in Astana called for developing mutual cooperation, specially in economic and trade fields.

"Facilitating banking transactions is an important platform for developing ties and cooperation between Tehran and Ankara,” President Rouhani said during the meeting in Kazakhstan capital.

President Erdogan, for his part, underlined the need for boosting trade exchanges between Iran and Turkey.