Posted on 03/24/2004 7:37:28 PM PST by Pikamax
Iranian banks open branches in north
Sulaimaniya, Iraq Press, March 25, 2004 – Two Iranian banks have opened branches in this Kurdish city, the seat of the regional government administered by Kurdish leader Jalal Talabani.
It is the first time Iranian banks open branches in Iraq, whose current interim authorities have scrapped the curbs the former regime had imposed on external trade.
Under Saddam Hussein, the Kurds had their own currency, but they swamped it into a unified dinar currently in circulation across the country.
Under a new temporary constitution, the Kurds are to preserve their autonomy but they are not allowed to set their own monetary policies.
The Central Bank in Baghdad is the only financial institution in charge of monetary matters.
It is not clear whether the two Iranian banks had obtained the green light from the Central Bank to operate in northern Iraq.
Iraqi-Iranian relations were strained under Saddam Hussein but they have substantially improved since his downfall about a year ago.
Iran has a long border with Iraq, running for more than 1,000 kilometers.
Iranian and Iraqi businessmen now travel freely and Iranian commodities and pilgrims cross into Iraq without controls.
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