Speaking to IBENA, Yahya Al-e Es’haq said the bank would function under regulations of central banks of the two countries.
According to data from the Islamic Republic of Iran Customs Administration, Iran-Iraq trade during the first half of the current fiscal (March 21-September 22) amounted to $4.56 billion, 20% of which belonged to Iranian exports to the neighboring Arab country.
There have been reports at regular intervals of hurdles in trade between the two sides. Observers say one of the hurdles hindering mutual trade pertains to money transfer. Establishment of a joint bank and must create trust and reassurance in financial exchanges, according to Financial Tribune.
Al-e Es’haq said two-way trade during H1 witnessed 31% growth. Bilateral trade stands at $8 billion annually, but money transfers between the two sides is low. The problem of money transactions were visibly ignored in his remarks.
“The groundwork for establishing a bank is ready. Despite the limitations, establishing a joint bank is possible,” the senior official said.
The head of the Federation of Iraqi Chambers of Commerce Jafar Alrasoul Alhamedani told IBENA that easing money transfers is one of the most important factors in boosting economic relations. Both sides should make more efforts to realize this key objective, he added.
Alhamedani said Iraqi banks are willing to establish joint banks in collaboration with their Iranian peers.