25 Apr 2024
Sunday 9 December 2018 - 12:53
Story Code : 329862

Iran, China resume banking ties: source

MNA - An informed source at the Iran-China Chamber of Commerce said Sat. that Tehran and Beijing have resumed banking ties after an Iranian bank started to broker money transfer between the two countries.

Last week, Asadulla Asgar Ovladi, chairman of the Iran-China Chamber of Commerce, said China's Bank of Kunlun would resume financial transactions with Iran in early December.

The Chinese bank, affiliated with China National Petroleum Corporation and in charge of processing payments to Iran, suspended financial transactions between the two sides as Iran stopped selling oil to China last month.

Meanwhile, there are speculations that an Iranian bank has been introduced to work with economic agents for financial transactions with China, which may cost less for the Iranian side than working with other banks.

Speaking to Mehr News correspondent on Saturday, an informed source, who wished to remain anonymous, said banking ties have resumed between Iran and China.

The source said cases are being reviewed with scrutiny due to strict rules affecting Chinese banks because of the US sanctions, and as such, the process is slow but it has not stopped.

Given Chinas exemption from US sanctions on Irans oil sales for at least three months, China's Bank of Kunlun and other Chinese banks have a little more leeway with doing financial transactions with Iran, said the source, adding that despite this, Irans financial transactions are under the US Treasury spotlight, and for this reason, foreign banks, fearing stricter penalties, are treading even more cautiously now than they did during the previous period of sanctions against Iran.
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