An economist criticizes the step to export Iranian goods to Iraq in riyals: It has question marks

An economist criticizes the step to export Iranian goods to Iraq in riyals It has question marks

On Saturday, December 30, 2023, economic expert Nabil criticized the decision to export Iranian goods to Iraq in Iranian riyals.

“He said, “This will raise a significant doubt about how Iraqi traders can purchase Iranian currency. It requires either the US dollar or the Iraqi dollar, which will be returned to Iraq for exchanging it with the dollar. However, since the Iraqi exports to Iran are very low, the volume of Iraqi dinar is quite limited”.”

The Governor of the Central Bank of Iran, Mohammad Reza Farzin, confirmed that Iran will now settle its exports abroad in the national currency, the riyal.

Muhammad Reza Farzin, on the sidelines of the Government and Private Sector Council meeting in Khorasan Razavi Province (northeast), stated that the Central Bank has been studying the possibility of settling Iranian exports through the riyal currency outside the country for several months. If implemented, this move will cater to the needs of exporters to Iraq and Afghanistan.

He said, “The export of goods to Afghanistan is one of the demands of Mashhad’s merchants. By implementing the ‘riyal offshore’ project, merchants will be able to benefit from it by using riyals outside the borders instead of foreign currency.”

According to him, the Central Bank has formulated regulations for the cross-border riyal project, two banks have already started the project and soon all the banks in the country will follow suit.