Iran, S. Africa to set up direct banking relations: Envoy

Tehran, May 15, IRNA – The ambassador of South Africa to Iran said on Monday that the two countries intend to create direct banking relations to facilitate commercial and economic exchanges. Referring to the existing trade and economic exchanges between Iran and South Africa, Max Philemon Whitehead said Implementation of Iran nuclear deal, known as the Joint Comprehensive Plan of Action (JCPOA) made it easier for the two countries to maintain ties and safeguard mutual interests. Whitehead said that now the most important problem faced by the two sides is establishment of a mechanism for furthering banking ties. “That is why the two sides are following to establish direct banking relations between Iran and South Africa,” he said. He said that two South African multinational banks, namely Barclays and Standard, cannot cooperate with Iran because banks in the country are still under sanctions. That’s why efforts are underway in the two nations for setting up direct banking ties, Whitehead said. The South African trade and industrial delegation arrived in Iran on May 13. According to the website of the country’s President, the goal of the visit is to fulfill commitments made by President Jacob Zuma during his last year visit to Iran to boost ties with the Islamic Republic in an array of areas, including oil and gas, chemicals, detergents, processed food, airplane electronic parts, steel, urban construction, environmental structures, water and sewage filtration equipment, trailers and diesel tankers, chicken and ostrich meat, medicine and medical equipment. Due to the sanctions the commercial exchanges between South Africa and Iran dropped from more than two billion dollars in 2011 to 583 million dollars in 2016. 1378/IRNA