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Iran and Turkey agree to expand trade and banking cooperation
Iran’s exports to EEU up 17% y/y since start of PTA
Iran and Turkey have agreed to expand trade and banking cooperation, the chief of staff of Iranian President Hassan Roughani said on September 9.
The neighbouring countries—Turkey with a GDP of around $770bn and population of 83mn and Iran with a GDP of $460bn and a population roughly the same size as that of Turkey—signed "very good" business cooperation documents and needed to "develop their relations in the banking sector as soon as possible," Mahmoud Vaezi was reported as saying by Xinhua.
He spoke after the sixth meeting of the Turkey-Iran High-Level Cooperation Council.
"It was decided that the two countries give priority to purchasing each other's domestic products. It was also decided that Iran and Turkey talk about bartering goods," Vaezi noted.
"We discussed the formation of a joint committee to support Iranian and Turkish companies and mutual investments. We weighed in on rail and road transportation and transit," Vaezi added, also saying that "we reached good agreements on cooperation at borders as well as increasing the number of trucks" permitted to cross the borders.
The meeting also reviewed exports of Iran's natural gas and petrochemical products to Turkey, Vaezi said.
Iran’s gas exports to Turkey were hindered for several months earlier this year after an explosion hit a pipeline. Tehran accused Ankara of being slow to fix the damage to enable the restoration of gas flows. Observers felt Turkey might be using the situation to gain leverage in gas price negotiations.
Earlier, Turkish and Iranian officials announced that they had agreed to joint military operations against Kurdish terrorist militia.
Iran’s exports to the Moscow-led Eurasian Economic Union (EEU)—grouping Russia, Belarus, Kazakhstan, Kyrgyzstan and
Armenia—have increased 17% y/y since the Islamic Republic and the bloc launched a temporary two-year preferential trade agreement (PTA) on October 21 last year, IFP reported on August 5.
Hamid Zadboom, Iranian deputy minister of industry, mines and trade said that Iran’s exports to the former Soviet countries stood at a value of $681mn, with the near one-fifth gain achieved despite the onset of the coronavirus (COVID-19) pandemic early this year. Bilateral trade between Iran and the EEU member states had reached $2.4bn, up 14% y/y, since the PTA kicked off, Zadboom added.
Tehran has hopes of expanding its relations with the EEU after the two-year PTA expires.
Iran had a $459bn economy in 2019 according to the International Monetary Fund (IMF).
5.1.3 Gross international reserves
Iran’s gold prices skyrocket in Iran
Iran’s gold market has skyrocketed, following suit with the dollar, euro and sterling prices on Iran’s so-called “free” market. In the gold sovereign market, the Azadi gold coin retailed for IRR117mn on September 14 while the slightly weightier Emami coin sold for IRR129mn, reflecting the pressures in the currency market.
According to the IMF in its Regional Economic Outlook on May 4, the value of Iran’s gross official reserves was estimated to reach $108.4bn in 2018. The country’s gross official reserves will experience a $13.3bn jump in
26 IRAN Country Report October 2020 www.intellinews.com
