Iran's exports to Iraq fell by 20 percent
Chairman of the Iran-Iraq Chamber of Commerce: Certainly, if a clean system is set up, some of our problems will be solved, so the Central Bank of Iran, with its good relations, can consult with the Central Bank of Iraq on this issue.
According to the International Iranian Stone Exhibition, Yahya Al-Ishaq said about the trade process between Iran and Iraq: The travel borders between Iran and Iraq have been closed bilaterally due to health issues since the outbreak of Corona virus and it is not a new issue but trade relations are ongoing. Which can be said to be one of the best trade relations of Iran in the world. Of course, the priorities of Iran's trading partner are China, Iraq, UAE, Turkey and Afghanistan, respectively.
He continued: "Unfortunately, the volume of trade in the world has decreased due to special circumstances and regional trade has also been affected by the decline in trade, but the determination of both Iran and Iraq to expand the market."
The head of the Iran-Iraq Chamber added: "It is important that government officials, economic activists and public institutions seek to expand this market." If the international and regional conditions improve, the Iraqi market is a very good market, and Iran-Iraq trade relations, joint ventures, trade services and other issues will improve.
Yahya Al-Ishaq added: "Unfortunately, there are still problems in the field of currency transfers and although this process is ongoing, it is not smooth." In the area of exporters' foreign exchange liabilities, a comprehensive formula must be reached with the central bank so that there is both trade and the demands of the central bank, and this formula does not yet exist. Because the markets of Iraq and Afghanistan are different from other markets and have operational differences, and the central bank must consider its own formula for these two markets.
"Our dealings with Iraq are a little different," he said. Some of them are transactions in Rials and some in the form of luggage, which is no longer possible due to corona issues, and some are returned through exchange offices and private sector institutions, but the type is different and can sometimes be cleared with goods, and sometimes Exchanges in dinars or other currencies.
The head of the Chamber of Commerce, emphasizing the role of the clearing system in the exchanges between the two countries, said: "Certainly, if the clearing system is launched, some of our problems will be solved. Therefore, the Central Bank of Iran can consult with the Central Bank of Iraq on this issue." Because now we need the raw materials of production units and some parts that if the clean system is implemented, there is a possibility that foreign exchange earnings will return faster and better.
Al-Ishaq said about the trend of Iran's exports to Iraq: "Our export revenue in the first six months of the year is about 3.5 billion dollars, while last year it was close to 12 billion dollars." Also, our exports have decreased by almost 20% compared to last year, but this decrease in exports is not only related to our country, and it is a matter of reducing global trade, which has decreased by about 15 to 20%.
* ILNA
