Iran, Pakistan central banks sign agreement for bilateral banking transactions

SBP deputy governor Riaz Riazuddin and vice governor of Iran’s central bank signed the agreement on behalf of their central banks, said a statement released by SBP.

“The objective of this banking and payment arrangement is to provide a trade settlement mechanism to promote trade between Pakistan and Iran,” said the statement.

According to ISNA, the agreement will be used for payment of trade conducted via letter of credit in accordance with international law and regulations.

“In the next step, both the central banks will invite banks in their respective jurisdiction to act as authorized banks for undertaking trade transactions under this banking and payment arrangement, added the statement.

 “The State Bank of Pakistan expects that this agreement will help in strengthening trade links between the two countries.”