Governor of the Central Bank of Iran (CBI) Abdolnasser Hemmati, on the sidelines of his Sunday meeting with Iraqi Finance Minister Fuad Mohammed Hussein, said that banking relations between Tehran and Baghdad will be eased to lubricate transactions between the two countries’ businessmen.
Hemmati said today that regarding the ever increasing trade transactions between the two sides and Iran’s exports of gas and oil to Iraq besides Iranian private sector’s exports to the country, the exports volume from Iran to Iraq has increased recently up to $12 billion per year.
He made the remarks on the sidelines of his meeting with the Iraqi Finance Minister in Tehran.
There are some banking difficulties about which negotiations were made with the Iraqi minister today and as accorded, to ease Iranian tradesmen’s activities in Iraq the impediments will be removed soon, CBI governor said.
“Our transactions with Iraq are done using our national currencies,” he said, “The major part of our earned financial resources are in dinar.”
“Iraq has paid one billion of its arrears to CBI,” he added.
In a related front, early in February, Central banks of Iran and Iraq finalized an agreement to establish a bilateral payment mechanism to ease trade and the flow of money between the two neighboring countries.
Hemmati and Governor of the Central Bank of Iraq Ali Mohsen Al-Allaq met on February 05 in Baghdad where they signed an agreement on a payment mechanism which is to facilitate the settlement of Baghdad’s debts to Tehran.
The deal mainly focused on a payment channel aimed at facilitating the settlement of the Arab country’s debts to Tehran over gas and electricity imports, inter alia.