Iran will open its first bank in Syria and coordinate to link payment systems
On a visit to Damascus, the Governor of the Central Bank of Iran, Mohammad Reza Farzin, announced the imminent opening of the first branch of an Iranian bank in Syria.
Farzin stressed that strengthening banking and commercial relations and joint investments are among the priorities of work between the two countries.
He explained that replacing national currencies in monetary relations and increasing the volume of trade and economic exchange constitutes part of Iran’s strategies to develop trade cooperation with neighboring countries.
For his part, the Governor of the Central Bank of Syria, Muhammad Issam Hazima, welcomed the idea of abandoning the US dollar in economic and commercial exchange, considering that this will enhance the trade balance and the national economy and benefit citizens.
Also, the Central Bank of Syria announced coordination with Iran to link the electronic payment systems between the two countries, allowing the use of payment cards issued by either country in both.
The bank’s statement indicated that this step will facilitate commercial and tourism operations between Syria and Iran.
An agreement was also reached on the exchange of local currencies between the two countries to facilitate commercial and financial operations, and to eliminate the use of the euro and the dollar in transactions between them.
Recent years have witnessed the signing of many agreements between the Syrian government and its Iranian ally in various fields such as energy, industry, agriculture, communications, banking, reconstruction, increasing joint investments, and facilitating the entry of the Iranian private sector to work in the Syrian market.
The study of the draft agreement on dealing in local currencies, barter and transit, and everything that would push bilateral relations forward, has already begun, according to the head of the Syrian-Iranian Chamber of Commerce, Fahd Darwish
Last August, the Iranian Minister of Economy, Ehsan Khandouzi, announced the establishment of the Iranian-Syrian Joint Bank, in addition to the establishment of a consortium in the field of insurance.
