Iran, Indonesia sign banking cooperation deal

Iran and Indonesia have signed an agreement to promote their banking cooperation – a move both countries say was necessary to help facilitate trade.   

The agreement was signed between Valiollah Seif, the governor of the Central Bank of Iran (CBI) and Darmin Nasution, the visiting Indonesian coordinating minister for economic affairs.

It envisaged the establishment of mechanisms to ease the enhancement of trade between the two countries, including the establishment of a joint account to settle payments, Iran’s IRNA news agency reported.

“Before proceeding with any step to boost trade, it is necessary to create the appropriate atmosphere for the commercial banks of the two countries,” Seif was quoted as saying.

He added that the agreement signed with Indonesia allows the central banks of the two countries to settle payments through their local currencies.  This, Seif emphasized, could help promote the stability of the economies of both Iran and Indonesia.

Iran’s top banker further emphasized that Tehran and Jakarta were also looking into the prospects of establishing banks in Indonesia and Iran.

This, he emphasized, would specifically help sectors such as tourism.

Nasution, for his part, emphasized that Indonesia welcomed the expansion of banking relations with Iran.

He also added that both countries needed to take measures to promote the trust of traders from both sides.

The Indonesian minister – who is heading a major trade delegation to Iran – has already met several top Iranian officials – including Oil Minister Bijan Zanganeh and Minister of Information and Communication Technology Mahmoud Vaezi as well as President Hassan Rouhani.

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