Tehran, Baku to Revitalize Banking Ties

In the latest measure to gradually revitalize Iran’s banking relations with other countries following the lifting of international sanctions, the governor of Central Bank of Iran, Valiollah Seif, met with top economic officials of neighboring Azerbaijan.

Seif met with Azerbaijani Minister of Economy Shahin Mustafayev, Governor of Central Bank of Azerbaijan Elman Rustamov, Rufat Aslanli, chairman of the Board of Directors of Financial Markets Supervision Authority, and Mohammad Reza Hosseinzadeh, CEO of Bank Melli Iran–the country’s biggest lender. 

“Because the presidents of Iran and Azerbaijan have stressed expansion of economic and business relations between the two countries, we held negotiations about developing banking relations,” Seif reminisced about his previous visit to Azerbaijan, reports Banker.ir.

Last August, Iranian President Hassan Rouhani visited Baku where the two sides agreed to expand financial cooperation and signed several documents.

According to Seif, the Monday’s meeting consisted of talks in the same vein.

“It was agreed that an expert team from Azerbaijan travel to Iran in order for us to finalize the negotiations and create the various prerequisites needed for suitable banking collaboration in line with the economic needs of both countries,” he said.

  Areas of Collaboration 

Seif noted that the talks were centered on expanding cooperation between commercial banks of both countries to ease trade, and creating a banking account designed to work with the currencies of both countries, which would “create better conditions for Iranian and Azerbaijani merchants so that they can transfer money with greater ease”.

Noting that integration of bank cards systems of the two countries was another talking point, he said if this goal is achieved, travelers from both countries can use their cards during their visits.

The negotiations held in the Azerbaijani capital also pertained to Bank Melli Iran, which has a branch in Baku.

According to Seif, the way the branch would continue its operations in the future were also discussed. 

One of the proposals that would probably be implemented is for the bank “turning into an independent Azerbaijani bank with shares 100% owned by Bank Melli Iran”, he added.

Seif said this will allow the branch to operate with better efficiency and play an active role in improving business ties with Iran.

“The Azerbaijani side was completely ready to collaborate with Iran for making mutual ties reach their true potential,” he concluded.