A Member of the Chamber of Commerce: The Key to Developing Trade with Iraq is Iran's Exit from the FATF Blacklist

A member of the Iran-Iraq Joint Chamber of Commerce emphasized that Iraq could serve as an intermediary for Iran's trade with global markets under the current sanctions. Mohammad Mahdi Raeeszadeh identified the 'master key' to developing trade between Iran and Iraq as the Islamic Republic's exit from the 'FATF blacklist.' According to ILNA news agency, Raeeszadeh stated that since last year, 'American influence in the economy and market of Iraq has intensified, significantly increasing the cost of trade for Iranians with Iraqis.' He referred to a directive from the Central Bank of Iraq to the Islamic Republic in 2023, which prohibited official currency exchanges with five countries, including Iran, making it impossible for the Islamic Republic to obtain dollars through legal channels in Iraq. Raeeszadeh noted that prior to this legal prohibition, 'Iranians could circumvent sanctions and obtain dollars in exchange for goods they exported,' but with American dominance over the Iraqi market, Iraqis have become cautious in trading with Iranians, making the conversion of dinars to dollars more difficult and costly for Iranians. This Chamber of Commerce member explained that 'the gap in the conversion of dinars to dollars has widened, and the profit margin for Iranian traders active in Iraq is not high enough to cover the difference between the official dollar rate in Iraq and the free market rate.' Raeeszadeh considered the dollar rate in Iraqi markets a 'threat to the export of Iranian goods to Iraq and a barrier to export growth,' adding that 'the cost of currency exchange can sometimes account for up to 20 percent of the total export value.' He pointed out the ineffectiveness of the 'barter system' in trade with Iraq, stating that 'the scope of barter has now been reduced to a limited number of food and pharmaceutical products,' and added that 'the barter system is effective when both countries have the necessary goods for each other and there is a balance in the value of the exchanged items.' Raeeszadeh further emphasized that even Iranian industries based in Iraq have been affected by 'the consequences of Iran being on the FATF blacklist,' thus linking any threat to Iran's economic relations with its western neighbor to the FATF issue. The resistance of the Islamic Republic's officials to remove existing obstacles for Iran's exit from the FATF blacklist is among the issues challenging Iran's economy. Alongside this issue, international sanctions imposed due to the lack of transparency in Iran's nuclear program in recent decades have limited the Islamic Republic's access to foreign currency resources. Speculation is increasing regarding the collective resignation of ten members of the Tehran City Council; the possibility of 'dissolution' of the council if Zakhani does not step down. The exemption for Baghdad to purchase electricity from Iran has been extended; the U.S. says it helps maintain stability in Iraq. Open data from Iran: the budget for five 'religious-propaganda universities' in Iran exceeds 600 billion tomans.