EghtesadOnline: Governor of the Central Bank of Afghanistan Khalil Sediq on Monday called for regulating banking ties to develop trade with the Islamic Republic of Iran.
Sediq made the remarks in a meeting with Governor of Central Bank of Iran Valiollah Seif.
According to IRNA, he said that Iran and Afghanistan enjoy extensive trade relations, but, unfortunately, major portion of transactions are carried outside the banking system causing risk for Iranian and Afghan businessmen.
'Through practical measures, we try to channel trade to the banking course so as to prevent likely risks.'
He noted that Iranian and Afghan central banks share common experience and both sides move towards better regulation of the financial system.
Sediq underlined that Afghan central bank has adopted appropriate and comprehensive regulations to fight terrorism financing and money laundering as well as corporate sovereignty.
Seif said for his part that Iran and Afghanistan have entered a stage in history of their trade that marks highest volume of exchanges but the method of trade they use is in cash and through traditional money exchangers.
Such methods can be improved through the banking system, he added.
'Extensive trade between Iran and Afghanistan should be further promoted through banking ties and we seek expansion of the brokerage ties between banks of the two sides so as to minimize the trade risk.'
He made clear that Iranian and Afghan officials are now discussing appropriate brokerage ties and volume of exchanges will be upgraded through the banking system and opening up Letters of Credit.
'Central Bank of Afghanistan follows highly advanced laws and has managed to have positive record in terms of inflation control and forex stabilization. This has easily made great deal of help to future planning and we can exchange experience with the bank.'
According to statistics released by the Islamic Republic Customs Administration, Iran's exports to Afghanistan stood at $1.16 billion in value in the first half (March 20-September 20) of the current Iranian year of 1395 (started on March 20), while importing $10.66 million worth goods.