Why Iraq stopped dealing in U.S dollar with Iran?

The office of the Iraqi Prime Minister Haider Al-Abadi issued a statement that Iraq will have to give up the U.S dollar in trade accounts with Iran following the U.S sanctions imposed on Iran. The spokesman of the agency, Saad Al-Hadithi informed Russian news agency RIA Novosti that sanctions might have a massive impact on money transferring and U.S dollar dominated transactions. It is important that both sides have shown their agreement to move away from the dealing in U.S dollar. Al-Hadithi predicted that the rejection of the U.S dollar negatively affects the trade between Iraq and Iran. He pointed out that it might be difficult to manage the trade level following the U.S sanctions imposed on Iran.

Iraq cancels dollar deal with Iran

Al-Hadithi also stressed that the Iraqi government is looking to develop a new mechanism to empower trade relations between Baghdad and Tehran in order to decrease the impact of U.S sanctions on the trade between the two countries. Point to be noted that first package of new U.S sanctions on Iran imposed into force last Tuesday. The second package of U.S sanctions will be imposed in the month of November 2018. The first package of sanctions includes the stoppage of financial transactions and imports of raw materials. It also targets the automotive and commercial aviation sectors. New sanctions will stop the government of Iran from buying or carrying the U.S currency. Trade of Iran in precious metals and commercial transactions will be made in Iranian riyals.

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