Valiollah Seif, Central Bank governor and Mr. Ali Mohsen Ismail signed the accord in Baghdad on Tuesday. They also discussed possible improvements in Tehran-Baghdad central bank ties.
Mr. Seif is visiting Baghdad to discuss several banking issues including local currency accounts in both banks and other types of cooperation to facilitate trade through providing a host of banking services which include but are not limited to Bank guarantees, letters of credit, and other treasury related exchanges. The accord emphasized also upon connection of National Financial Switch (NFS) of both countries to facilitate pilgrims’ use of credit cards in both sides of the borders.
Parties to the accord agreed that a permanent committee, called ‘Iran and Iraq Joint Banking Commission,’ would be established. Currently, two Iranian banks and a single Iraqi bank are active in Baghdad and Tehran, respectively.