October 19, 2017 / 12:47 PM / a year ago

Turkey-Iran central banks agree to trade in local currencies - Turkish PM

ISTANBUL, Oct 19 (Reuters) - Turkey and Iran’s central banks have formally agreed to trade in their local currencies, Prime Minister Binali Yildirim said on Thursday, a move aimed at increasing bilateral trade.

Under the deal, the Iranian rial and Turkish lira will be easily converted to help reduce the costs of currency conversion and transfer for traders. The countries had been using euros.

“Trading with local currencies is the most significant step to improving economic ties. The central banks of both countries agreed on this issue and they will inform other banks about how the deal will be applied,” Yildirim told a joint news conference with Iran’s First Vice President Eshaq Jahangiri.

“Trading in local currencies will be encouraged and this will contribute to making trading easier and increase the trade volume and diversity,” Yildirim added.

Earlier this month, Turkish President Tayyip Erdogan said the deal was aimed at raising Turkish-Iranian trade volume to $30 billion from current $10 billion.

Writing by Ezgi Erkoyun; Editing by Ece Toksabay and Alison Williams

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