Baghdad and Tehran agree to release Iranian funds from Iraq

The Governor of the Central Bank of Iran, Abdel Nasser Hemmati, announced that Baghdad and Tehran have agreed to release Iranian funds in Iraq to buy basic goods, emphasizing that they are not covered by US sanctions.

Abdel Nasser Hemmati did not disclose the size of the amount that was released, but said that “Tehran has large financial income in Iraq as a result of the export of electricity and gas.”

He added that after the agreement, he met with Iraqi Prime Minister Mustafa Al-Kazemi, who in turn promised to monitor the implementation of the agreement on a weekly basis.

He continued: “The operational obstacles that had previously prevented Tehran from obtaining its income have been removed,” expressing optimism about the development of economic and banking relations between Tehran and Baghdad.

For his part, the Governor of the Central Bank of Iraq, Mustafa Ghaleb Makhif, said: “We suggest forming a joint committee in the presence of banking and financial officials from the two countries to find the necessary solution to solve the financial problems.”

The Iran-Iraq deal comes days after Washington imposed sanctions on 18 Iranian banks, with the aim of isolating the Iranian financial system from the world.

Tehran suffers from a shortage of its foreign currency savings, and US sanctions and the outbreak of the Corona virus have contributed to the fall of the national currency to record levels.