Iran, Azerbaijan explore banking relations
By Fatma Babayeva
Iran and Azerbaijan discussed the possible ways to enhance bilateral cooperation between their banking systems, the press service of the Central Bank of Iran told Trend on May 16.
The issue was mulled as Elman Rustamov, head of the Central Bank of Azerbaijan met his Iranian counterpart Valiollah Seif in Tehran.
Seif reiterated Iran's proposal to launch a joint monetary and banking committee to render closer bilateral cooperation.
The Iranian side also offered both sides to introduce some of their banks to each other in order to open branches in each country.
"Opening accounts in each other country's central bank and using it for trade transactions with a regular clearing timetable could also be a great help to bilateral trade," Seif also proposed.
Rustamov, for his part, said that establishing an independent bank will be a good idea to boost Iran-Azerbaijan ties, adding the joint committee will investigate the grounds for doing so.
The main purpose is to expand economic and banking ties, and then in the next step to open branches of Azerbaijani banks in Iran, he said, adding that the CBA also welcomes the idea of opening joint accounts, but through the International Bank of Azerbaijan.
Several private banks of Iran are interested in entering the banking market of Azerbaijan.
There is also a branch of Iranian Bank Melli in Azerbaijan, which was opened in 1993. However, it is not active.
It is worth mentioning that after sanctions imposed on Iran for Tehran’s nuclear energy program were lifted, new opportunities emerged to develop ties with Iran for all countries in the region.
Trade turnover between Azerbaijan and Iran- which amounted to $ 123.786 million in 2015- increased by 30 percent in the first quarter of 2016.
Currently, Iran and Azerbaijan are focused on expanding economic ties in various fields including industry, agriculture, energy, alternative energy, and transportation.
In the meantime, the increase in the trade transactions between the Islamic republic and Russia also strengthens Azerbaijan’s position as a transit country.
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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva
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