Iran, Turkey agree to use national currencies

News ID: 4109831 -
TEHRAN, Oct. 10 (MNA) – A draft of MoU for using Iran’s rial and Turkey’s lira was inked by governors of Iranian and Turkish central banks.

Governors of Iranian and Turkish central banks have approved of the draft for Memorandum of Understanding (MoU) to use rial of Iran and lira of Turkey in bilateral trade transactions. The agreement was reached with the aim of facilitating trade with the national currency of the two countries in order to finance trade and direct investment between the two countries.

Under the terms of the MoU, rial of Iran and Turkey’s lira will be easily converted to each other and the issue will reduce cost of currency conversion and transfer for traders of both sides alleviating the need for other currencies.

In other words, the two central banks will be able to use international payment instruments, including credits and negotiable ones, to finance trade in national and local currencies, as envisaged in the agreement.

Additionally, during the one-day visit of Valiollah Seif, Governor of Iran’s Central Bank (CBI), an agreement was inked between Iran’s CBI on behalf of the government and the EBA Economic Development and Trade Bank. The signing ceremony was attended by senior banking officials from both countries.

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