Iranian, Turkish banks to use national currencies in bilateral trade
July 30, 2018 - Tehran and Ankara have reached an agreement on exchanging Turkish lira with Iranian rial in bilateral banking transactions, said Iran's deputy minister of industry, mine and trade.
Exchanging the lira with the rial in Iran-Turkey bilateral trade has been approved, Sadeq Najafi told reporters on the sidelines of the 24th Electronic, Computer and E-Commerce Exhibition (ELECOMP 2018) in Tehran on Monday, Tasnim News Agency reported.
He added the banks of the two countries will pursue the implementation of this agreement. "Although some private banks may not assent to this (use of national currencies), there are various ways in which the two countries can trade, and there are companies and individuals that can create conditions (for it)."
Commenting on the possibility of using digital currencies in bilateral transactions, he said in case the required infrastructure is established, the two countries can use cryptocurrency for trade.
Trade between Iran and Turkey grew three percent in the first five months of 2018 to stand at $4.57 billion. The figure was $4.44 billion during the same period last year.
Turkish exports to Iran during January-May 2018 witnessed an 11-percent decrease to reach $1.14 billion from $1.286 billion during the same period last year.
Turkish imports from Iran in the same time-span, however, posted a nine-percent growth, year-on-year, to reach $3.43 billion. The figure for the first five months of 2017 was $3.15 billion.
During January-May, 2018, Iran was the 19th biggest importer of Turkish products and the 7th major source of imports to Turkey.
Iran and Turkey have set a $30-billion annual trade target, signing several agreements to enhance cooperation in various areas.
Earlier, Turkish President Recep Tayyip Erdogan said Ankara will continue will continue to meet its gas requirements from Iran despite Washington's intentions to reintroduce sanctions against Tehran.
"They imposed sanctions to Iran. What happened? Did Iran collapse? When [the former US president Barack] Obama told us back then, I said 'I am sorry, but we are purchasing natural gas from Iran. How else will I supply natural gas if I cannot buy it'?" President Erdogan stressed.
"If the US does not change this attitude they should not forget they will lose a sincere and strong partner like Turkey," Hurriyet Daily News quoted him as saying.