TEHRAN, Jan. 16 (Xinhua) -- Senior officials from the Central Bank of Iran (CBI) and Turkey met in Iran's capital Tehran to discuss new ways of developing banking relations between the two neighboring states, Financial Tribune daily reported on Tuesday.
In the meeting, Ahmad Araqchi, CBI's deputy for foreign exchange affairs, and Murat Uysal, vice governor of the Central Bank of Turkey, called for expanding economic and trade ties for facilitating banking relations.
"The currency swap agreement (signed last year between Iran and Turkey) is one of the measures of the central banks of both countries to increase cooperation and is expected to be implemented soon as the infrastructures are set in place," Araqchi said.
On Oct. 20, Iran and Turkey's central banks announced that both neighbors had signed a currency swap agreement for conducting bilateral trade in local currencies.
Based on the agreement, the two banks allocated a credit of five billion Turkish lira (1.32 billion U.S. dollars) and its equivalent in Iranian rial to their respective agent banks, namely Bank Melli Iran and Ziraat Bank, to be used as letters of credit with a repayment period of one year for both countries' traders.
The currency swap agreement is aimed at reducing costs for both countries' traders, as they will no longer need to use intermediate currencies since the specified agent banks are allowed to finance bilateral trading via international payment tools such as letters of credit and remittances in their local currency.
Iran and Turkey further aim to connect their bank cards in a move that will allow their citizens to benefit from mutual electronic banking services and facilitate tourism.
"The implementation of the currency swap agreement with Iran is an important part of Turkey's plan to expand strategic ties between the two nations," vice governor of the Central Bank of Turkey said in Tehran meeting.
Besides, Huseyin Aydin, CEO of Turkish Ziraat Bank who also heads Turkey's association of state-owned lenders, said at the meeting that his bank welcomes enhanced ties with its Iranian counterparts.
"While a number of Iranian banks have opened accounts with Ziraat, similar negotiations are underway with other banks. Ziraat Bank's account with Bank Melli Iran has also been opened," he said.
Besides, Osman Arslan, chief executive of Turkish Halkbank, sought to outline the current policies of the lender under his months-old leadership, and vowed that as before, the bank will "play its own role in expanding banking ties with Iranian banks."
