Iran, Turkey implement currency swap deal

According to a press release published by the Central Bank of Iran, the first letter of credit (LC) has been opened for financing bilateral trade between Turkey and Iran in local currencies instead of the US dollar or euro.

The agreement is aimed at facilitating bilateral trade and investment by reducing costs for both countries’ traders, the media reported.

As part of the currency swap agreement, which was first initiated in 2017, the central banks of Iran and Turkey allocated TRY5 billion ($1.4 billion) and its equivalent in Iranian rial to be used to facilitate banking and business between the two countries without a third-party currency.

According to statistics released by the Turkish Statistical Institute, trade turnover between Iran and Turkey reached $1.67 billion in January-February 2018 with exports of Turkey to Iran valuing at about $527 million during the same period of time