Turkey urges Iran to trade in local currencies

Local currency trade would eliminate trade barriers between the two countries and help manage difficulties in banking.

Turkey urges Iran to trade in local currencies

World Bulletin/News Desk

Turkey and Iran should conduct trade in their local currencies to eliminate economic barriers and avoid difficulties in banking transactions, Economy Minister of Turkey Nihat Zeybekci said on Wednesdday.

“In order to eliminate trade barriers between the two countries and to tackle current difficulties in bilateral banking transactions, Turkey and Iran have to trade in their local currencies,” Zeybekci said.

Trade volume between the two countries is now declining, after peaking at $22 billon dollars in 2012.  Zeybekci said that the recently signed trade agreement should intercept this gradual decline in trade volume. 

“Now we should put an end to this slide. We signed the preferential trade agreement, which has a historical importance for both countries, at the beginning of the year. As of Thursday, the preferential trade agreement between two countries will come into force,” Zeybekci said.

The transit fee for trucks has lately become a sticking point between Turkey and Iran. Zeybekci said that he expect this problem to be solved during the visit of Iranian Minister of Communications and Information Technology, Mahmoud Vaizi in January.

“Both countries know by heart that we should not waste time with this kind of topic,” Zeybekci said.

When Iran hiked its rates for Turkish trucks crossing the border, Turkey retaliated with increasing transit fees for Iranian trucks.

On Dec. 1, Iran started sealing the fuel tanks of Turkish trucks at border checkpoints. Fuel prices are much lower in Iran than in Turkey because of state subsidies.

Iran ceased the practice once discussions began to negotiate transit fees.


Güncelleme Tarihi: 31 Aralık 2014, 15:53

Muhammed Öylek