Global News

Iran has negotiated Iraq to use local currencies instead of the dollar

Monday 17 December 2018 03:01 PM

Iran has negotiated Iraq to use local currencies instead of the dollarThe head of the Iran-Iraq Joint Chamber of Commerce Yahya al-Ishaq said on Monday that the Central Bank of Iran has begun negotiating with its Iraqi counterpart to open bank accounts in order to use local currencies (the Iranian riyal) and the Iraqi dinar in commercial transactions between the two countries Instead of the US dollar.

“Negotiations between the Central Bank of Iran and the Iraqi government have made great strides in the use of local currencies in trade exchanges between the two countries,” he said, adding that there was no problem exporting to Iraq.

He said that “Iran has no problem for export to Iraq” and that “these negotiations between the central banks of Iran and Iraq intended to provide facilities for traders.”

“The financial transactions between the two countries are currently being conducted through a currency exchange facility through one or two banks,” the official said.

According to statistics provided by the head of Iran-Iraq Joint Chamber of Commerce, Iran’s exports to Iraq in the first eight months of the year were worth “eight billion dollars.”

US Energy Secretary Rick Perry flew to Iraq last week and spoke to Baghdad officials about US sanctions against Iran, calling on Baghdad to reduce its dependence on energy imports (gas and electricity) from Iran.

For his part, Iranian Ambassador to Baghdad Iraj Masjedi said on Sunday that trade exchanges with Iraq could reach 20 billion dollars, adding that “the two countries have the ability to raise exchanges in the coming years.”

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