Central banks of Iran, Azerbaijan to open checking accounts
By Rashid Shirinov
The central banks of Iran and Azerbaijan will open checking accounts, head of Iran's Central Bank Valiollah Seif told Trend on the sidelines of bilateral meetings between the Presidents of Azerbaijan and Iran in Baku.
He said that checking accounts will open according to a Memorandum of understanding (MoU) signed between the central banks of the two countries.
“Meeting with my Azerbaijani colleague Elman Rustamov [head of the Central Bank of Azerbaijan] was the main purpose of my visit to Azerbaijan. We discussed expansion of bilateral ties during the meeting today. Economic capacities of both countries require us to seriously increase the volume of trade turnover,” Seif said.
He considered banking system as the best and the most secure way for defraying the cost of transactions. A checking account in fact is the main factor which is capable of defraying the cost of transactions, the head of Iran's Central Bank stressed.
Under the MoU, the central banks of Iran and Azerbaijan will encourage their commercial banks to establish bilateral banking ties through opening of correspondent accounts, and conditions for establishing their branches in both countries have been created.
Seif further added that under the terms of the MoU the banking card systems of Iran and Azerbaijan will be switched so that the citizens of the two countries can use their banking cards in both states. Currently, 33 banks operate in Azerbaijan, and 29 in Iran.
Another statement made by Seif was about the intention of Iran and Azerbaijan to establish a joint regional Bank and thereby develop financial cooperation between the two countries.
"The proposal was put forward with the aim of deepening banking relationships and simplifying settlement operations. In the future all necessary steps for the founding of the Bank will be taken," Seif assured. He also stressed the need to ensure the security of financial transactions for tourists and businessmen of the two countries.
A ceremony of signing several documents was held after the expanded meeting of Presidents Aliyev and Rouhani on August 7. The MoUs specified cooperation in industry, banking, transport, science, tourism, culture etc. The two countries signed 11 MoUs after Ilham Aliyev visited Tehran on February 23.
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Rashid Shirinov is AzerNews’ staff journalist, follow him on Twitter: @RashidShirinov
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