Three-Day Visit of the Central Bank Governor of Iran to Germany

The Governor of the Central Bank of Iran stated that negotiations have taken place with the German Minister of Finance to revive bilateral banking and financial relations. According to the official news agency IRNA, Valiollah Seif, the Governor of the Central Bank of Iran, said on Friday at the European Banking Congress at the end of his three-day trip to Germany: 'Germany and Iran intend to normalize their banking relations before the imminent lifting of sanctions.' The Central Bank Governor also participated in the Iran-Europe Economic Cooperation Conference and emphasized the Central Bank's focus on returning Iran's banking system to global financial markets. This two-day conference was held on Wednesday and Thursday (November 18 and 19 / Aban 27 and 28) by the Maleki Group, a financial consulting firm based in Frankfurt, and the Phoenix Economic Consulting Company, with the support of the Islamic Republic's embassy in Frankfurt, Germany. According to Deutsche Welle news network, the Central Bank Governor announced the interest of international companies in investing in Iran and stated that the Central Bank is committed to supporting investors. He added, 'Foreign investors can currently own 100% of bank shares in free zones and 40% of bank shares in other areas of Iran, and Iran intends to increase cooperation for establishing joint and cross-border banks.' According to Mr. Seif, the main focus of the Central Bank is the reintegration of Iranian banks into international financial markets, including restoring relations between Iranian and European banks. During his trip to Frankfurt, on the sidelines of the one-day European Banking Summit, he also met with Mario Draghi, the President of the European Central Bank, and Jens Weidmann, the President of the German Central Bank, and participated in a closed meeting with the leaders of 60 European banks. The Central Bank Governor also reported on banking relations between Iran and 27 German banks and emphasized that the Central Bank of Iran has initiated reforms for financial stability, effective monetary policy, and efficient resource allocation in the banking sector. Seif noted the reduction of inflation in Iran from 40% to 13% and added that the government is committed to more regular and transparent financial and monetary policies to help economic growth and control inflation. The Central Bank Governor predicted that with the implementation of a five-year program, Iran's economy could achieve an annual growth rate of eight percent. His optimism regarding foreign investors' interest in the Iranian market comes as Werner Schulze, the director of joint economic planning with Iran, considers achieving significant deals with Iran to be difficult and requiring creativity. The Iranian ambassador to Germany, who was one of the organizers of the Iran-Europe Economic Cooperation Conference, stated that deepening economic relations with Europe is a priority for the Iranian government. Ali Majidi emphasized, 'Iran seeks long-term and genuine economic relations and cooperation for convergence in the global economy and joining the global network of production, trade, and investment.' He stated, 'Iran's first choice for re-entering the global economy is the European region, especially Germany.'