CBI chief urges Iraq banking deal to unlock funds, boost ties
Head of Central Bank of Iran Abdolnaser Hemmati called for faster implementation of banking mechanisms to allow Iran to use its funds held in Iraq’s banking system and discussed ways to expand technical and economic cooperation with Iraqi officials on Monday, IRNA reported.
On the second day of his visit to Iraq, Hemmati met Iraqi Finance Minister Faleh Sari Abdashi to discuss Iran’s financial claims and technical and economic cooperation, the report added.
The two sides reviewed specific technical proposals submitted by Iran’s central bank to the Iraqi government aimed at speeding up the process of pursuing Iran’s claims. They also stressed strengthening economic ties and making greater use of Iranian contractors’ technical capabilities in Iraqi infrastructure projects.
Hemmati also met Iraqi Central Bank Governor Nizar Nasser Hussein and stressed the need to remove banking obstacles and implement mechanisms for Iran to use its foreign-currency resources held in Iraq’s banking system.
Hemmati called for Iran’s claims against the Iraqi government to be resolved, particularly through establishing mechanisms to allow the Central Bank of Iran to use its funds held in the Iraqi banking system, IRNA reported.
Hemmati did not give a figure for Iran’s outstanding claims during Monday’s meetings. He said in July that the Central Bank of Iran had about $7 billion in Iraq, while the Iranian Oil Ministry was owed more than $3 billion, putting Iran’s total claims against the Iraqi government and banks at about $10 billion to $11 billion.
Hemmati also called for banking procedures to be eased for Iranian private-sector businesses and for obstacles to the transfer of funds and use of shared monetary capacities to be removed.
Hussein welcomed the expansion of economic relations between the two countries and pointed to their abundant natural resources and skilled workforce.
“We believe we must make the best use of these capacities to enhance technical and engineering cooperation and improve financial relations between the two countries,” Hussein said, according to IRNA.
Hemmati invited Hussein to make an official visit to Tehran to continue consultations and finalize banking agreements.
The two officials also reviewed problems facing Iranian traders and exporters in Iraq.
At a separate meeting with Iranian traders, exporters and contractors at Iran’s Embassy in Baghdad, Hemmati said he would pursue their concerns, including obstacles to repatriating export earnings, tariff-related problems, claims by contractors and the need for performance guarantees, ISNA reported.
Hemmati said the issues would be pursued seriously and that the Central Bank of Iran would make every effort to facilitate the activities of Iranian economic operators in the Iraqi market.