Iraq to stop using U.S. dollars in trade with Iran due to sanctions – official

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Iraq to stop using U.S. dollars in trade with Iran due to sanctions – official

Iraq to stop using U.S. dollars in trade with Iran due to sanctions – official

Iraq will have to stop using the U.S. dollars in its financial transactions with Iran over Washington’s sanctions against Tehran, Iraqi Government Spokesman, Saad al-Hadithi, said on Thursday.

On Tuesday, the first package of U.S. sanctions against Iran, previously lifted under the Iran nuclear deal, was reinstated following the U.S. withdrawal from the agreement.

The sanctions target Iran’s acquisition of dollar bank notes, trade in gold and other metals, transactions related to the Iranian rial, as well as the other countries’ transactions and trade activities with Iran.

“The sanctions will influence, first of all, money transfers and banking operations in the U.S. dollar.

The sides will not use the U.S. dollar,” al-Hadithi said, adding that the move would result in a decline in trade between the two countries and, thus, affect the consumers.

He stressed that the Iraqi government would try to find ” a new mechanism” in order to support trade relations with Iran.

“In any case, the government will seek to solve all the problems related to this issue, it will look for corresponding mechanisms to neutralise the [sanctions’] influence on the Iraqi market and also prevent the damage caused to the Iraqi citizens’ interests,” al-Hadithi said,

According to the estimates of the Iranian daily Financial Tribute, Iran exported 5.57 billion dollars worth of non-oil goods to Iraq from March 2017 to February 2018, with food and construction materials topping the list of exported commodities.

Iran also supplies vehicles and spare car parts, electronics to Iraq.

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