Iran, Malaysia Integrating Banking Transactions

After negotiations between the officials of Iranian and Malaysian central banks, the two countries agreed to integrate their bank card systems and discussed conducting business in local currencies.

“Iranian banks are now connected to TARGET 2 and trade with Europe is underway. Iran is also eager to expand its banking ties with Malaysian banks,” said Gholamali Kamyab, the deputy governor for foreign exchange affairs at the Central Bank of Iran, as reported by IBENA.

TARGET2 is an interbank payment system for the real-time processing of cross-border transfers throughout the European Union.

An Iranian banking delegation is in Kuala Lumpur, the capital of Malaysia, meeting with the senior managers of Malaysian commercial banks and officials of the Malaysian central bank (Bank Negara Malaysia).

The Iranian delegation is headed by Kamyab who held a meeting with the Assistant Governor of the Central Bank of Malaysia Adnan Zaylani Zahed. 

The deputy governor of CBI explained the situation of Iran’s economy after the sanctions were lifted and assessed ways of boosting bilateral trade relations.

Kamyab noted that the Central Bank of Iran’s policies are aimed at easing business ties with other nations and using local currencies for trade.

“In line with the aforementioned policy, we welcome the interest of Malaysian banks to open accounts in Iranian commercial banks in local currencies. Malaysian banks can also transfer money in the currencies of other countries, if the Iranian side approves,” he added.

Adnan Zaylani Zahed also expressed Malaysia’s interest in transferring money in Japanese yen and Chinese yuan.

“Currently Malaysia is using yen and yuan for business and transfer of cash. Trade ties between the two countries looks promising under this framework,” he said.         

The delegation also included representatives from Iranian banks, Melli, Mellat, Pasargad, Keshavarzi and Middle East. They had back-to-back meetings with the officials of Malaysian banks like Islam Bank, Exim Bank, Me Bank and CIMB on boosting bilateral relations.