Upbeat Prospects for Iran-Australia Ties

Recent improvements in the Iranian banking system such as the adoption of Financial Action Task Force regulations, positive forecasts by the International Monetary Fund and the gradual implementation of Basel accord standards are promising a better economic future for Iran, said the Australian ambassador to Tehran during a meeting with the Central Bank of Iran’s Governor Valiollah Seif.

“I have been in Iran for 10 months and now I see that conditions are right for expanding bilateral economic relations,” Ian Biggs was also quoted as saying by CBI’s website.

The two discussed the development of banking relations and fostering bilateral economic relations.

Australia’s ambassador added that his priority in Iran is to strengthen economic and business relations while encouraging the Australian finance sector to become active in Iran’s market.

“Establishing strong banking ties is necessary to achieve better economic connections,” he added.

Seif said the reason for international banks’ caution in cooperating with their Iranian peers is their lack of information about Iran and suggested a banking delegation, headed by the governor of the Reserve Bank of Australia, visit Iran and witness the significant progress of the banking system and acquire more information about it.

“Exchange of banking delegations prepares the ground for further negotiations and will also inform foreign banks of Iran’s efforts to comply with the international banking standards and their high priority for our banking system,” Seif added.

Iran’s top banking official pointed to the establishment of correspondent banking relations with international banks and reconnection with SWIFT–the international interbank messaging network.

The CBI chief noted that currently negotiations are underway to integrate Iran’s bank card system with a number of countries, namely Russia, Oman, Pakistan and Azerbaijan, and a couple of those talks are in their final stages. He noted that Iran and Australia could also discuss the issue in a meeting between the governors of CBI and RBA.

Seif, who also heads the Money and Credit Council, emphasized the necessity of stabilizing foreign exchange market, adding that this policy was started four years ago and will continue since it kept the economy steady even in the face of volatility.