Economy, Business And Markets

Iran, Turkey Sign Currency Swap Deal

Iran, Turkey Sign Currency Swap Deal
Iran, Turkey Sign Currency Swap Deal

Shortly after Iran and Turkey signed a draft of currency swap agreement, Governor of the Central Bank of Iran Valiollah Seif hailed the fact that the country has managed to reverse its banking stature as a result of the nuclear accord.

"After the Joint Comprehensive Plan of Action [the formal name of the nuclear accord], our banking relations can't be compared to the past, as we have suitable banking ties across the world and are able to meet our needs with regard to clearing banking transactions," Valiollah Seif told IRNA in Ankara.

However, he conceded that a number of banks, mainly major European lenders, remain wary of working with Iran, adding that expectations from JCPOA must not be unreasonably high.

Late Monday, as part of a CBI mission to Ankara headed by Seif, the central banks of Iran and Turkey signed a draft of the rial-lira currency swap agreement with the goal of preparing the ground for expanding economic and trade ties.

Seif and his counterpart Murat ?etinkaya signed the draft for "facilitating trade using the national currencies of both countries to finance trade and boost direct investment".

Hours earlier, CBI had signed a cooperation agreement with ECO Trade and Development Bank, based on which conditions and regulations for the activities of the bank's representative office in Iran will be devised.

In his latest remark, the CBI chief downplayed the effects of what US President Donald Trump has said in the past few days, saying "at its highest, Trump's talks will have temporary effects on banking affairs that might affect the currency market as well, but will not prevail in the long run".

Pointing to other manifestations of such remarks in the past five years that created temporary fluctuations in the market, Seif advised market players not to be swayed and consider the long-term perspective.

On Turkey, Seif said the draft agreement on currency swap will be finalized in the First Iran-Turkey Economic Commission that is to be held soon, adding that because of conditions created as a result of the agreement, "traders of both sides can engage in transactions with complete safety and the least cost".  

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