Iran recently faced secondary phase of US sanctions,
which has affected Iranian banking and insurance industry. In order to survive
its trade Iran is coming up with a new banking measures. Recently, The Central
Banks of Iran and Iraq are finalizing negotiations to begin trade in their
national currencies.
According to Mr. Yahya Ale-Es'haq, Chairman of
Iran-Iraq Chamber of Commerce, “Negotiations between the central banks of Iran
and Iraq are underway to reach an agreement on the use of the IRR and Iraqi
Dinar in bilateral trade. Once finalized, the agreement would allow the banks
of the two countries to issue letters of credit on the basis of Iranian Rial
and Iraqi Dinar.”
Iraqi President Mr. Barham Salih said he wants to raise
the bilateral trade level from the current USD 12 Bn to USD 20 Bn in the coming
year.
According to Secretary-General of Iran-Iraq Chamber of
Commerce, Mr. Hamid Hosseini “Iraq is beginning to rebuild the infrastructure
destroyed by terrorists, hence a number of its cities, especially Mosul and
Kirkuk, can be a suitable market for Iranian construction materials.”
Iran Steel Exports to Iraq
Iran, one of the largest steel exporter in MENA region
has exported 0.60 MnT iron ore to Iraq during CY’18 (till Oct’18). During
CY’17, Iran has exported 0.30 MnT iron ore to Iraq. Iran has recently exported
semi-finished steel to Iraq, the nation has exported 0.23 MnT semi-finished
steel to Iraq in CY’18.
Finished steel has also been traded among both the
nations. Iran has exported 0.53 MnT finished long steel to Iraq in CY’18,
during last calendar year of 2017, Iran has exported 0.26 MnT finished long to
Iraq.
Iran has exported 0.14 MnT finished flat steel to Iraq
in 10 months of CY’18 against 0.07 MnT in CY’17.
Inputs from Iran Daily
Source: Steel mint