Iraq to pay for imports from Turkey in Iraqi dinar

Iraq and Turkey have solidified their commitment to the recent agreement on financing foreign trade, as announced by Wadee Al-Handal, the president of the Iraqi Private Banks League (IPBL).

In a statement to the Iraqi News Agency (INA), Al-Handal confirmed ongoing communication between the two nations to implement the agreement under the Iraqi government’s guidance.

During a recent visit to Turkey by a delegation of senior Iraqi officials, an Iraqi-Turkish committee was established to enhance financial cooperation and facilitate trade financing. Al-Handal commended Turkey’s flexibility in funding commerce, allowing Iraqi importers to pay in Iraqi dinar while Turkish exporters receive payments in Turkish lira.

Anticipating a positive impact on the exchange rate, Al-Handal believes that agreements to finance international commerce in local currencies could lead to a decrease in the US dollar exchange rate in the parallel market. He disclosed that small-scale merchants importing goods from Turkey will now have the option to finance their transactions in Iraqi dinars through private banks in Iraq.

Highlighting recent initiatives by the Central Bank of Iraq (CBI) and the government, Al-Handal emphasized that utilizing currencies like the euro, UAE dirham, Chinese yuan, and Indian rupee in trade financing signifies a strategic move to mitigate the US dollar’s exchange rate in the parallel market. Iraq’s private banks continue to forge international partnerships, expanding relations with banks worldwide to facilitate trade financing with various countries.