Dinar updates bgg

They were headed for another Shia dominated government with even less accountability than in the past. The end of the CBI currency auctions, which is the main door through which Iran transports US dollars into their economy, means the beginning of economic and currency reform in Iraq. The Central Bank of Iraq file … an employee reveals the hidden:. Dinar Recaps. Nov 29, News , BGG. Iraqi News Sunday AM Jul 24, Mar 6, Jan 17, This term has been used since the s 19th century AD.

These pressures include using the Iraqi dinar and Iranian rial in the trade exchange between the two countries. This comes despite reservations expressed by some Shiites who recently set the Iranian Consulate ablaze in the city of Basra. During demonstrations against the rampant financial and administrative corruption, protesters chanted slogans calling on Iran to stop its interference in Iraqi affairs.

The Central Bank of Iran is struggling to reach an agreement with Iraq on the use of the dinar or the Iranian rial for trade with Iraq, but Iraq needs the approval of the United States, which is still determined to allow Iraq to only import natural gas from Iran for electricity supply for only a short time. The government pledged to do so and opened an account for the Iranian company at a government bank in the dinar currency.

This exception may include electricity in the coming period because the United States considers Iraq as an economic lifeline for Iran. While the US dollar is still used for trade between Iraq and Iran, all transfers are made outside the Iraqi banking sector through foreign brokers or banks in Syria and Lebanon. The dollar is also being smuggled through primitive ways in southern governorates.

The vast majority of trade between the two countries is comprised of Iranian exports to Iraq, so Tehran would likely prefer euro or rial-based transactions. If the Iraqi government makes any decisions related to trade with Iran, then the Iraqi private sector will abide by such official decisions. Following the latest amendment to the draft budget of , which is being discussed by the Iraqi parliament, the Iraqi government reduced allocations for the import of electricity from This means that Iraq will no longer buy electricity from Tehran, and this may spark popular protests similar to the ones that erupted in several provinces after Iran cut off its electricity supplies to Iraq last summer.

Hence the US rejection it will face. The private sector pays for these Iranian goods either through dollar transfers made by exchange companies or through means not accredited by the Central Bank, or by simply transferring cash by car. It is also very difficult for Iraq to ban the dollar due to the Iranian hegemony over the authorities.

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