Iran announces the start of settling its exports to Iraq in its currency

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Iran announces the start of settling its exports to Iraq in its currency

The Governor of Iran’s Central Bank confirmed a new project to settle the country’s exports in the national currency, the riyal.

Muhammad Reza Farzin announced during the Government and Private Sector Council meeting in Khorasan Razavi Province, located in northeastern Iran, that the Central Bank had studied the possibility of settling Iranian exports outside the country’s borders through the riyal currency. This initiative has been under consideration for several months and, once implemented, will meet the needs of Iranian exporters to Iraq and Afghanistan.

He said, “Mashhad’s merchants have been demanding a resolution to this issue to export to Afghanistan. By implementing the ‘Rial Offshore’ project (riyals outside the borders), merchants will be able to benefit from it instead of using foreign currency.”

“The Central Bank has formulated regulations for the cross-border riyal project, and two banks have started it. Soon, it will be available to all banks in the country,” he said.

Notably, the US central bank, the Federal Reserve Bank, has imposed procedures and restrictions on external financial transfers from Iraq to ensure that they do not reach Tehran.