Talks Underway for Iran’s Frozen Assets in Iraq
IRAN NEWS ECONOMIC DESK
TEHRAN – Chairman of the Iran-Iraq Chamber of Commerce Yahya Ale-Ishaq says some $5b of Iran’s money has been blocked in Iraq and talks are underway that the money is used in the best way.
Al-e Eshaq said that Iran’s rivals in Iraq are on the rise and Turkey and China are more active in Iraq market, and some Arab countries like Jordan, Saudi Arabia and Egypt will be Iran’s rivals in Iraq’s market in the future. He noted that the more the condition in Iraq becomes normal and safe, the more condition will be competitive in its market.
On the devaluation of Iraq national currency dinar and its effect on trade between Iran and Iraq, he said devaluation of dinar is a domestic affair as the Iraqi officials believe it will be to the benefit of the budget and other issues in the country, and it has no significant effect on Iran-Iraq trade. He noted but there will be better maneuver regarding imports of Iraqi goods, and suppose Iranians trade with Iraq with dinar, it will be to their benefit and it will also provide more opportunity for Iranian travelers and pilgrims.
He said but it will have no major effect on Iran’s exports and Iranian will get more dinars with lesser value and since the country has no significant imports from Iraq and it is mainly exporter, the devaluation of dinar will not have major effect on bilateral trade.
On the presence of other countries especially Arab ones in Iraq market, Al-e Eshaq said Saudi Arabia and Egypt have started process for their presence in Iraq market and there is not competition between them and Iran, however the number of Iran’s rivals in Iraq market is on the rise and in the future they will turn into Iran’s major rivals. He reiterated that as the condition in Iraq is getting normal and safe, the condition is getting more competitive and Europeans may also enter Iraq market and Iranians will have to improve the quality of their services and the after sale services in order to consolidate their position in the Iraq market.
Reacting to Iran’s frozen assets in Iraq, he said currently the amount of Iran’s frozen assets in Iraq is around $5b and the country is planning to use it in its best way possible, and by some part of it, the country is to import goods which are not under sanctions and the talks are underway.