TEHRAN - The Central Bank of Iran (CBI) has announced that negotiations have commenced between senior Iranian and Bahraini banking officials to release the frozen foreign resources of the CBI and other Iranian banks in Bahrain.

During a meeting between the Deputy for International Affairs of the Central Bank of Iran and the Deputy Governor of the Central Bank of Bahrain on June 23, both sides emphasized the release of Iran's foreign exchange resources in Bahrain in a technical context and based on mutual respect, IRNA reported citing CBI on Monday.

They discussed the causes of the issue and identified existing obstacles, presenting solutions to address them in hope of achieving results soon.

The two sides agreed to continue specialized talks between the central banks of the two countries after the political talks of the Bahraini Foreign Minister in Tehran.

Specialized talks between the two sides are scheduled to be held in Tehran or Manama in the coming days and it will continue until the results are achieved.

Reportedly, the Central Bank of Iran still has the option of pursuing legal action in international courts, as approved by the parliament in the past few months. However, the parties are hopeful that desired results can be achieved faster through negotiations and by providing technical solutions.

Back in May, Deputy Speaker of the Bahraini Parliament, Abdul Nabi Salman, announced that Bahrain and Iran are on the path to restoring diplomatic relations with the support of Russia, emphasizing the importance of fostering good neighborly ties between the two nations.

In an interview, the Bahraini lawmaker expressed that the process of reestablishing relations with Iran has garnered positive responses from both the Bahraini government and its people, with the Bahraini parliament issuing a statement welcoming this development. Salman underscored the significance of reviving political and commercial connections with Iran, citing the neighboring country's proximity and the mutual support for unity and stability in the region.

Highlighting the long-standing trade exchanges and shared residency of Iranian citizens in Bahrain and vice versa, Salman emphasized the unique closeness between the two countries within the Persian Gulf. He stressed the necessity of Russia's anticipated support as a mediator in facilitating the restoration of relations between Tehran and Manama, given Russia's vested interests in regional stability and robust ties with Persian Gulf nations.

These remarks follow the recent visit of Bahrain's foreign minister to Tehran for the funeral of President Ebrahim Raisi and King Hamad bin Isa Al Khalifa's trip to Moscow, during which he advocated for the reinstatement of diplomatic relations between Bahrain and Iran.

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