Iran seeking to enter into payment arrangements with OIC countries

Iran is seeking to set up independent payment systems with Muslim countries to avoid sanctions that hamper regional and international trade.

Iran’s chief banker said on the sidelines of a summit of central bank governors of the Organization of Islamic Cooperation (OIC) in Turkey’s Istanbul on Monday that he had discussed the issue of creating bilateral and multilateral payments systems in talks with counterparts from the OIC.

“This issue has never been raised at a multilateral level ... we are seeking to have it implemented with member countries of the OIC,” said Mohammad Reza Farzin.

Farzin, who is the governor of Central Bank of Iran (CBI), said the creation of payment systems with Muslim countries can facilitate the use of national currencies in trade.

He also held talks with the governor of the Central Bank of Turley, a key member of the OIC with which Iran has considerable economic and trade ties.

During the meeting, Farzin and Fatih Karahan discussed infinitives for expansion of monetary, financial and economic cooperation between Iran and Turkey, according to a report by Iran’s official IRNA news agency.

Iran has managed to enter into bilateral financial arrangements, including independent payment systems, with members of the BRICS grouping of developing countries, including Russia.

That has helped the country lessen the impacts of US sanctions targeting its access to the dollar-based international banking system.

Iran is seeking to replicate the experience in its dealings with the OIC, an organization which has 57 members.

Iran’s customs office figures show the country’s non-oil trade with members of the OIC rose by 14% year on year in the six months to late September to reach some $32.2 billion.

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