News ID: 216534
Published: 0209 GMT June 11, 2018

Iran, China to use national currencies in trade

Iran, China to use national currencies in trade

Governor of the Central Bank of Iran said Tehran and Beijing plan to use national currencies in bilateral trade.

Valiollah Seif further said that in an attempt to facilitate trade between the two countries and address challenges in business transactions, Iran and China plan to move towards the use of national currencies in their settlements, reported IRNA.

"China has been one of Iran's most important trade partners in recent years," he added, noting that 25 percent of Iran's oil exports go to China.

The CBI governor added that Chinese banks and insurance companies would continue to cooperate with the Islamic Republic and that new US sanctions cannot harm relations between the countries.

"Chinese officials have repeatedly stated that they would continue to cooperate with the EU to salvage the JCPOA," Seif said.

He added that China is opposed to Washington's unilateral sanctions against Iran.

Also, in a meeting with Iranian President Hassan Rouhani on the sidelines of the Shanghai Cooperation Organization summit in the city of Qingdao on Sunday, Chinese President Xi Jinping highlighted the need to promote banking cooperation between Tehran and Beijing and bilateral trade using national currencies.

"We are determined to cement economic relations with Iran," he said, adding, "China's participation in constructing Tehran-Isfahan express railway is in its implementation phase and we hope that the Tehran-Mashhad route will also start soon."

Jinping reaffirmed China's commitment to the JCPOA and modifications to Iran's Arak heavy water reactor, adding, "Cooperation between the two countries in the fight against terrorism and drugs, as well as in the technical, educational and defense fields will continue."

Describing the JCPOA as a great multilateral achievement that guarantees regional peace and cooperation, the Chinese leader said, "With their unilateral spirit and disregard of commitments and regulations, Americans are seeking to change international order to their own benefit.

"China is definitely against the United States' unilateral move in withdrawing from the JCPOA and imposing new sanctions, and believes that all sides to the agreement must live up to their commitments."

The Iranian president hailed China as Iran's top trade partner in recent years, noting, "Trade in the national currencies of the two countries can help continue this trend and the development of banking cooperation is the greatest support for implementation of agreements between the two countries.

"The two countries have very important projects and strategic cooperation in the fields of energy, transportation and industry and it is essential that these projects and cooperation gain momentum within the framework of the joint commission of the two countries."

Iran welcomes Chinese investment in upstream energy fields, he said, adding, "Cooperation between the two countries in fighting terrorism, extremism and smuggling is effective in boosting regional stability and this cooperation must continue."

On the sidelines of the bilateral meeting, the two countries also signed four memorandums of understanding for cooperation in various fields, including joint research cooperation between the Iranian Vice-Presidency for Science and Technology and China's Ministry of Science and Technology, cooperation in countering illegal production and smuggling of narcotics, psychedelic drugs and their precursors, interaction between Iran's Securities and Exchange Organization and the China Securities Regulatory Commission (CSRC), as well as joint cooperation within the framework of China's Belt and Road Initiative.

Earlier in the day, the Iranian president met Indian Prime Minister Narendra Modi on the sidelines of the SCO summit to discuss closer bilateral and regional relations between the two nations.

Welcoming India's active participation in the development of Iran's Chabahar Port, Rouhani said, "Chabahar Port, as the bridge between India to Afghanistan and Central Asia to Eastern Europe, can strengthen the historical and commercial relations between the two countries and the region more than ever."

The Indian premier voiced his country's determination to develop inclusive relations with Iran, highlighting the importance and special status of Chabahar for the development of regional cooperation.

The SCO was established in Shanghai in 2001, with China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan as founding members.

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