Iran begins settling exports to Iraq in rials

BAGHDAD, December 30 — The Governor of the Central Bank of Iran, Mohammad Reza Farzin, announced on Saturday that Tehran had initiated a plan to receive payment for exports to Iraq in Iranian rials.

According to Iran’s Fars News Agency, Farzin made the announcement on the sidelines of a government and private sector council meeting.

“The issue of settling Iranian exports in [rials] outside the country’s borders has been studied by the Central Bank for several months. Its implementation will address the requirements of exporters to Iraq and Afghanistan.

This project is one of the prominent demands of merchants in the Mashhad region involved in export operations to Afghanistan. The project, named ‘Rial Offshore,’ will allow traders to benefit from the plan instead of using foreign currencies.

Regulations for the cross-border rial project have been formulated by the Central Bank, and two banks have already started implementing the project. It is expected to be extended to all banks in the country soon.”