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

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

2024-01-03 12:59

Immature decision... Iran questions the possibility of Iraq implementing foreign currency restrictionsShafaq News/ Member of the Board of Directors of the Joint Iranian-Iraqi Chamber of Commerce, Shaaban Foroutan, said on Tuesday that the Baghdad government’s decision to restrict the buying and selling of foreign currency in the country, and the restrictions that have been put in place, are immature and impractical.

Shaaban Fortoun said in a statement reported by Fars News Agency, and translated by Shafaq News Agency, regarding the approval of the new Iraqi government law regarding restrictions on the purchase and sale of currency in this country, this law is not considered a mature decision by Iraq because the political, governmental and administrative system in this country The country cannot limit the buying and selling of currency in this way.

He added: Of course, Iran may also face some problems in the export process at the beginning of implementing this law, but this problem can be solved with an appropriate solution, and it is not impossible.

Froten added, “There is no doubt that, given the governmental and administrative system in Iraq, solutions will soon be found for currency conversion because Iraqis do not have a great desire to use the banking system due to their tribal and ethnic beliefs and lifestyle.”

He referred to the good diplomacy of the (Iranian) government and the Central Bank, and said: Given the performance of the 13 (Iranian) government, we have always seen positive international and diplomatic movements and consultations by the Central Bank, and this time we can rely on this potential. The (Iranian) Central Bank has so far taken valuable measures in discussing facilitating currency exchanges with countries in the region, which I believe can provide a suitable platform for currency relations by engaging in this issue.”

Fortin saw the Iraqi government’s new law as “immature and ill-considered,” and said: “While we are witnessing such an immature decision by the Iraqis, we must send our experienced and capable employees in the Ministry of Foreign Affairs and the Central Bank, to this country in the form of a delegation,” So they can reduce restrictions and interact with the neighboring country.

He continued, of course, Iranian representatives have always shown that they have great strength in the field of diplomacy and can facilitate the export process to Iraq this time as well.

The Central Bank of Iraq specified the entities covered by receiving its external transfers in cash in the US dollar, as of January 2, 2024, and this included:

– All diplomatic missions, organizations and international agencies operating in Iraq.

– Non-governmental civil society organizations registered in the General Secretariat of the Council of Ministers, in the event that the foreign donor party stipulates that the amounts of incoming foreign transfers be paid in the dollar currency inside Iraq.

– Government contracts in effect in the US dollar, and ongoing contracts for grants, loans, and foreign agreements.

– 40% of the remittances received by Iraqi exporters resulting from their exports abroad.

The Central Bank of Iraq, according to a statement, stresses the implementation of the decisions of the Council of Ministers to prevent internal transactions in foreign currency and to enhance confidence in the Iraqi dinar.