TEHRAN (Iran News) –Secretary of Iran-Iraq Chamber of Commerce says although Iran’s blocked money in Iraq has been unfrozen but Iran needs the U.S. license for changing the sources into dollar.
Jahanbakhsh Sanjabi told ILNA that Iraq has approved its budget for next year and the figure shows 70% growth comparing to the preceding year and over $150b has been allocated to the developmental and construction sector in this budget which shows multiple rise in this sector in the budget.
He then pointed to the oil revenues and economic stability of the country as well as deployment of strong central government in Iraq, adding that Iraq has now come out of the statelessness condition and the central government is determined to provide the process for reconstruction of the country. He noted that if we put the figures beside each other we find that over 85% of the goods and services for materializing the goals of the budget should be provided beyond the borders and it means now there is a good a suitable market in front of the sectors which export goods and services, skillful work power, transfer of technology and knowhow and business activists can take advantage of it.
Sanjabi added that it seems Iran will not be the supplier of the early needs of Iraq and Iran’s exporting pattern to Iraq should be changed and good capacities should be provided for export of ironware, home appliances, construction materials and equipment. He reiterated that increase in the budget of Iraq will have three impacts on its trade with Iran: First, it will lead to growth in goods trade, secondly, in case of removing some obstacles because of sanctions, Iran can have colorful presence in Iraq’s engineering and technical markets like the past decade, and thirdly it will pave the ground for using Iranian workforce and knowhow in Iraq’s market.
Touching upon the exit of Iranian workforce and going to Iraq, he said that if the skillful forces of Iran go to Iraq for short time it will be a good opportunity because the local workforce turns into international one and it is not a threat but if they migrate which we fear it will be a serious threat for Iran because billions of dollars have been spent for training those forces and exit of each skillful force means exit of billions of wealth from the country.
On paying Iran’s gas and electricity debts by Iraq, he said that the money is in Iraq’s national currency which is in an account in TBI Bank of Iraq that Iraq government has paid its debt into this account but Iranians are not able to turn it into dollars unless they get the U.S. license and since the dominant foreign currency in Iraq’s market is dollar, it will be difficult for Iran to change its money into dollar.
Jahanbakhsh added that this unfrozen money should be used for humanitarian and non-sanctioned goods and services but it will have positive impact on Iran’s forex market, reiterating tha the money is around $10b in dinars in Iraqi bank.
