Economy, Business And Markets

Currency Agreement Eases Iran-Russia Banking Ties

Currency Agreement Eases Iran-Russia Banking Ties Currency Agreement Eases Iran-Russia Banking Ties

The Central Bank of Russia sees no obstacle to using local currencies in its dealings with Iranian banks, the bank’s deputy governor said.

“It is always possible to open new bank branches in both countries and the implementation of it depends on the banks themselves,” Dmitry Skobelkin told Exim News.

“We express our willingness and see no problem with the establishment of Iranian bank branches in Russia. It is actually our belief that this will happen soon.”

Since Iran and Russia have high potential in undertaking bilateral banking deals, Skobelkin noted that the decision to use local currencies in dealings between the two countries could help expand joint trade ventures and boost their economies.

“Agreements have been reached that could prove to be a step forward in cooperation between the two countries,” he said.

In a statement on Friday, the Central Bank of Russia announced that the commercial banks of Russia and Iran have agreed to pay for bilateral supplies of products in national currencies.

The agreement was signed on Thursday in the course of the Fourth Plenary Session of the Permanent Russian-Iranian Commission on Trade and Economic Cooperation’s working group on financial and banking cooperation in Iran.

“Owing to the general atmosphere of the region and the problems caused by money laundering for the monetary system of both countries, Russia is ready to share its experiences on the issue with Iran,” Skobelkin said.

 Anti-Money Laundering Efforts

The Russian official was referring to another agreement to expand bilateral relations, particularly in areas related to anti-money laundering efforts and countering the financing of terrorism.

“If some money suspected of being unclean or used for the purpose of financing terrorism find its way into a country, they can have a devastating effect on the banking system and subsequently the economy of the country. Joint collaborations will prove useful in controlling this dilemma,” he said.

The deputy governor also said that beyond the economy, money laundering will also threaten the social and political ethos of a country, adding that for the same reason, the analysis of negative effects of this phenomenon and how to combat it have been on the agenda of economic policymakers and the country’s judiciary system.

Skobelkin noted that although great efforts have been made to battle this problem, not much had been achieved so far.

“That is because money laundering operations and their negative repercussions are extremely complicated on the one hand and on the other, not enough research and studies have been conducted to better recognize the issue,” he said.

Because Iran is situated in a unique and strategic place, it has become a hotbed of underground networks seeking to use it for their illegal activities.

“This has made Iran one of the countries exposed to money laundering and that is why it is necessary to combat this with full force by implementing new policies regarding the issue,” the Russian official concluded.

 EDBI Expanding Russia Ties

The Export Development Bank of Iran is also ready to cooperate with all Russian banks, announced the bank’s chief executive.

“We are ready to work with all Russian banks in export development,” Ali Salehabadi was quoted as saying by Shana.

“Banking deals are now underway with Russian banks on a good and acceptable level and with the signing of complementary agreements, we will be ready for further joint efforts.”

According to the bank official, EDBI has been chosen by the Central Bank of Iran as the country’s representative in dealings with Russia.

“Our bank has been tasked with developing economic relations between Iran and Russia,” he said.

Salehabadi also said a deal has been finalized with one of the biggest chain stores in Russia for Iranian goods to be sold in Russian markets.