News ID: 231473
Published: 0905 GMT September 16, 2018

Iran, Turkey to establish joint bank to promote trade ties

Iran, Turkey to establish joint bank to promote trade ties

The head of Iran-Turkey Business Council proposed the establishment of a joint bank in line with the agreements on bilateral trade between the two neighboring nations using national currencies.

 Umit Kiler described the establishment of the joint bank following the Tehran trilateral summit ‘a complementary action’ to Iran-Turkey relations, IRNA reported on Sunday.

Using national currencies has been considered before. Implementing a joint financial framework eases the process of replacing national currencies with the dollar or other foreign currencies, Kiler added.

He said that Turkish investors, importers and exporters would support the joint bank.

“Iran and Turkey have centuries-long mutual trade, thus unfair US sanctions affect Turkey more than other countries,” he said.

Kiler stressed that the estimated $30-billion Iran-Turkey trade in the future can be realized through expansion of relations between banks in the two countries.

He also said that an economic delegation comprised of Turkish businessmen and managers of economic sectors are to visit Iran in order to review new means to develop bilateral trade and devise a roadmap to circumvent sanctions.

Currently the trade exchange between Iran and Turkey stands at $11 billion.

Along with Turkey, the European Union is also organizing a special financial system to thwart US sanctions and enable Iran to continue selling oil to Europe as well as continuing business transactions.

The plan under review in Berlin and Brussels would involve establishing a kind of clearing house for all European trade with Iran.

A form of commercial entity known as a “special purpose vehicle” would be established, with European governments as shareholders.


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