“Immature decision”… Iran questions the possibility of Iraq implementing foreign currency restrictions

“Immature decision”… Iran questions the possibility of Iraq implementing foreign currency restrictions

Shaaban Foroutan, a member of the Board of Directors of the Joint Iranian-Iraqi Chamber of Commerce, criticized the Iraqi government’s recent decision to limit the buying and selling of foreign currency within the country. He described the restrictions as immature and impractical.

Shaaban Fortoun issued a statement, which was reported by Fars News Agency, regarding the new Iraqi government law that restricts the purchase and sale of currency in the country. Fortoun believes this law is not a mature decision by Iraq because the country’s political, governmental, and administrative system needs to allow the buying and selling of currency in this way.

After implementing the law, he mentioned that exporting may pose some initial challenges for Iran. However, he also stated that these problems could be resolved with a suitable solution and that they are manageable.

“Froten said that there is no doubt that currency conversion solutions will soon be found in Iraq, considering the country’s governmental and administrative system. However, he also mentioned that Iraqis have a low desire to use the banking system due to their tribal and ethnic beliefs and lifestyle.”

“He praised the Iranian government’s good diplomacy and the Central Bank’s positive international and diplomatic efforts. He expressed confidence in the potential of the 13th government’s performance and the Central Bank’s consultations, stating that they have taken valuable measures in discussing facilitating currency exchanges with countries in the region. He believes that these measures can help establish a suitable platform for currency relations by engaging in this issue.”

Fortin criticized the new law passed by the Iraqi government and considered it to be immature and poorly thought-out. He suggested that a delegation consisting of experienced and capable employees from the Ministry of Foreign Affairs and the Central Bank should be sent to Iraq in order to interact with the neighboring country and reduce the imposed restrictions.

He said that Iranian officials have always been skilled at diplomacy and can once again facilitate exports to Iraq.

The Central Bank of Iraq has specified the entities eligible to receive external cash transfers in US dollars, effective January 2, 2024.

“Please provide a list of all diplomatic missions, organizations, and international agencies that are currently operating in Iraq.”

Registered NGOs with the General Secretariat of the Council of Ministers must pay foreign transfers in dollars if required by the donor.

Government contracts for grants, loans, foreign agreements are priced in US dollars.

Iraqi exporters receive 40% of the remittances resulting from their exports made to foreign countries.

The Central Bank of Iraq has emphasized the need to implement the Council of Ministers’ decisions to prevent internal foreign currency transactions and boost confidence in the Iraqi dinar, according to a statement.