TEHRAN- During a meeting between the governor of the Central Bank of Iran (CBI) and the Syrian prime minister in Damascus, the two sides explored the ways to expand monetary and banking relations between the two countries.

During the meeting, CBI Governor Mohammad-Reza Farzin announced the development of monetary and banking relations between Iran and Syria and the removal of the dollar from the economic and commercial exchanges of the two countries in the near future.

He said Tehran is ready to promote banking and monetary relations with Syria based on the agreements of the presidents of the two countries, and the establishment of an Iranian bank in Syria, which will be realized soon, will be the basis for the growth of relations and commercial cooperation between the two countries.

Referring to the various fields of monetary and banking cooperation between Iran and Syria, the CBI governor emphasized the readiness of Iran to implement agreements in this field and to replace national currencies in the commercial and economic exchanges of the two countries.

The prime minister of Syria, for his part, expressed hope for the bright future of economic relations between Syria and Iran and emphasized that holding technical-economic meetings between experts and officials of the two countries promises to increase the comprehensive cooperation between Syria and Iran.

Referring to laying the ground for the banking and monetary cooperation between Syria and Iran in order to increase the economic relations between the two countries, during the specialized meeting of the governors of the central banks of Syria and Iran, Hussein Arnous stated the step of setting up an Iranian bank in Syria in the near future is definitely a strong foundation for the next steps in the field of development of economic cooperation between the two countries.

In mid-October, Iranian Finance and Economic Affairs Minister Ehsan Khandouzi said he had held talks with his Syrian counterpart on the sidelines of the annual meeting of the International Monetary Fund (IMF) in Marrakech, to discuss the implementation of the agreements reached between the two countries during President Ebrahim Raisi’s visit to Damascus.

“In this meeting, the latest progress of the economic agreements made during President Raisi's visit to Damascus was discussed,” IRNA quoted Khandouzi as saying.

According to the minister, issues related to joint insurance and joint banks were also among the subjects raised in the meeting and it was decided that the Iranian and Syrian sides should each follow up on these matters.

On August 1, the minister announced the launching of a joint bank and insurance company with Syria.

Khandouzi made the announcement after meeting with Syrian Communications and Technology Minister Iyad Mohammad al-Khatib and the country’s Economy and Foreign Trade Minister Mohammad Samer al-Khalil in Tehran.

According to Khandouzi, the insurance company is a consortium of Iranian and Syrian insurance firms and the joint bank is also shared, with Iran owning 60 percent and Syria 40 percent of the shares.

He noted that the mentioned bank and insurance company have been launched mainly with the aim of facilitating the activities of Iranian businessmen and traders in Syria.

“We hope that with more cooperation between the two countries, especially in the fields of taxation and customs, we will witness a new chapter in economic relations between the two countries,” Khandouzi said.

The Syrian market is a very green market that can provide an excellent opportunity for Iranian companies, manufacturers, investors, and businessmen, he added.

According to the minister, the ease of using investment and trade opportunities in the Syrian market following the agreements made can be attractive to many Iranian companies, since it can increase their export potential and revenues and also deepen their influence in neighboring countries.

“Of course, we are also ready to welcome Syrian investors and businessmen in Iran. It seems that the institutionalization of the financial and insurance sector, as a necessary prelude to advancing business and investment goals, can be considered good news for the economic operators of both sides,” the official said.

Following a visit of Iranian President Ebrahim Raisi to Syria in May, a delegation of the country’s senior officials traveled to Tehran in early August to meet with Iranian counterparts and explore avenues of cooperation, and also follow up on the agreements reached during President Raisi’s visit to the country.

In late July, Tehran hosted a meeting of the heads of the Iran-Syria Joint Economic Committee on Monday during which the two sides discussed previously reached agreements and explored ways of accelerating their implementation.

MA

Photo: CBI Governor Mohammad-Reza Farzin (R) and Syrian Prime Minister Hussein Arnous