Tehran and Baghdad say no to dollar in bilateral trade

A limit of 10 thousand euros imposed on European currency or other foreign currency; US currency is prohibited. Necessary to strengthen the banking system to support trade between the two countries. Iranian vice-president: US sanctions are "very effective, difficult and delicate moment".

Teheran (AsiaNews / Agencies) - The Iraqi authorities have decided to officially remove the US dollar as the reference currency in bilateral trade with Iran. At the same time, businessmen and visitors to the Islamic Republic will be required to have a legal limit of 10 thousand Euros - used in place of the US currency - that they can take with them.

The Iranian media reported the move announced in a note issued by the Iraqi Customs Authorities, according to which passengers may carry a maximum of 10 thousand euros or the corresponding value of another foreign currency. Compared to the past, when a maximum limit had been set, the introduction of the green back into Iran is now prohibited.

In addition to shifting from the US dollar to alternative currencies, Iranian and Iraqi traders have pledged to strengthen exchange transactions. However, the banking system needs further improvements because only a small slice of the trade balance between the two nations passes through the banking system. "Solving this problem - says the head of the Iran-Iraq Chamber of Commerce - must be a priority".

Iraq is Iran's second largest trading partner, after Beijing. However, Chinese exports are largely petrochemical products, while Baghdad buys a large variety of goods from Iran, helping to support their employment rate.

The Islamic Republic does not recognize Israel and threatens to attack targets of Israel and the United States in the event of an American offensive against Tehran Last May,  Washington decided to impose new sanctions on Iran, the toughest sanctions in history , after pulling out (the JCPOA). Hence the significant decline in the Iranian economy after years of marked growth; at the expense of it, it was primarily the weakest and most vulnerable part of the population.

The confirmation comes from the first Iranian vice-president Es'haq Jahangiri, who admitted yesterday that the US sanctions have turned out to be "very effective". This is why the country, he adds, is going through "a difficult and delicate moment", even if it has not yet reached a "stall". "The United States - concluded the vice-president - declared an economic war against us. Meanwhile, they are triggering a political and media attack to influence public opinion in Iran."

• iran
• iraq
• economy
• sanctions
• trade
• dollar
• euro
• poverty