Iraq Iraq develop new platform for trade to avoid using the US dollar
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Rather than using the dollar to finance private sector trade, Iraq and Iran have adopted a new platform called Isiomer.
It has been several months since the Central Bank of Iran examined the issue of settling Iranian exports with the riyal currency outside its borders, and its entry into force will address the needs of exporters to Iraq and Afghanistan, according to Mohammad Reza Farzin, the governor of the Central Bank of Iran.
This is one of the demands of Mashhad traders to export to Afghanistan, and by implementing the riyal F-shore project (riyal outside the borders), traders will benefit instead of paying foreign currency," he said.
It was pointed out by the Governor of the Central Bank of Iran that "the list of the cross-border rial project has been drafted by the Central Bank, and practically two banks have started this project, and it will soon be circulated to all banks in Iran."
Due to Western economic sanctions against Tehran, Prime Minister Muhammad Shia Al-Sudani revealed that Iran offered Iraq to deal in currencies other than the dollar, including the Chinese yuan, in trade transactions between the two countries.
Traders in the private sector rely on buying dollars from the parallel market to finance their imports from Iran after the rise in the dollar exchange rate in the parallel market.
Iraq and Iran are discussing ways to finance private-sector trade away from the dollar, through the Asian Clearing Union, which is headed by Iran and includes China, India, Afghanistan, Pakistan, Bangladesh, and others.
In addition to the Indian rupee or the Chinese yuan, he noted that the Iraqi trader will pay and receive in dinars, while the Iranian trader will pay and receive in riyals.
Asian Clearing Union (ACU) confirmed the adoption of the yuan, ruble, and rupee currencies as well as the development of an electronic platform for trading between member countries without the use of the dollar or SWIFT.
During an interview with Iranian television station "Jam Jam" TV, Farhad Mursali, Secretary General of the Asian Clearing Federation (ACU), pointed out that 12 resolutions were adopted during the recent Asian Clearing Union meeting in Tehran, as officials of the Indian and Pakistani central banks confirmed that these decisions favor Iran and its traders over the rest of the members.
Iranian traders can now open accounts in rupees in specific banks, knowing that the decision will take effect next month, as one of the most important decisions taken is that of exchange between Iranian traders and the rest of the traders of member states using the rupee currency.
According to him, Iranian traders will be able to obtain financing in rupees, yuan, and rubles, as well as other national currencies of member states, and the SWIFT platform will be removed. (This information has been reported, bu not yet been confirmed by the blog editor)
