Iran-Turkey to establish joint bank to promote trade ties

IRNA – The head of Iran-Turkey business council proposed the establishment of a joint bank in line with the agreements on bilateral trading between the two neighboring nations using national currencies.

Ümit Kiler described the establishment of the joint bank following the Tehran trilateral summit ‘a complementary action’ to Iran-Turkey relations.

‘Using national currencies have also been negotiated before. Implementing a joint financial framework eases the process of replacing national currencies with dollar or other foreign currencies,’ Kiler added.

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

‘Iran and Turkey have centuries-long mutual trade, thus US unfair sections affect Turkey more than the other countries,’ he said.

Kiler stressed that the estimated 30 billion dollars of 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 planned to visit Iran in order to review new means to develop bilateral trade and devise a roadmap to circumvent sanctions.

Currently the trade exchanges between Iran and Turkey stands at 11 billion dollars, which is planned to reach 30 billion dollars in the future.

Along with Turkey, 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 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.