Iran Says Banking Barriers with Iraq Removed
Iran's Central Bank governor says banking obstacles between Tehran and Baghdad have been removed, though implementation of cash agreements remains pending.
ERBIL (Kurdistan24) - Abdolnasser Hemmati, governor of the Central Bank of Iran, said on Thursday, obstacles to banking exchange between Iran and Iraq have been removed following recent negotiations with senior Iraqi officials, opening the way for Tehran to benefit from financial resources held in Iraqi banks in the coming weeks.
According to Iran's Mehr News Agency, Hemmati stressed the importance of recovering Iran's frozen financial assets and accelerating economic exchange between the two countries. He said that during his recent visit to Baghdad, the Iraqi prime minister agreed to issue financial guarantees for Iranian contractors, backed by Iranian funds held in Iraqi banks, and that executive guidelines on the matter have since been issued.
Hemmati said the positive stance and readiness of Iraq's new administrative team has opened a new horizon for developing economic and trade cooperation between Tehran and Baghdad.
On the status of financial agreements, Hemmati said implementation of any cash arrangements depends on approval from Iran's top leadership. He said a draft memorandum on releasing Iran's frozen assets has been prepared, but its implementation remains on hold, noting that all economic steps must be based on national interest and require approval from the country's leadership and the Supreme National Security Council of Iran.
Addressing the decline in oil revenues, Hemmati described it as a broader regional problem that has also affected neighboring countries, including Qatar and Iraq. He said the key difference for Iran is that, due to US sanctions and the blocking of its foreign currency reserves, Tehran cannot easily access its assets held abroad.
The announcement comes as the United States has escalated economic pressure on Iran, with President Donald Trump this week announcing a sweeping new sanctions campaign targeting Iran's oil trade, currency exchange networks, and military procurement channels, and warning countries against providing Tehran any financial lifeline.