Iraq Cancels Dealing In Dollar With Iran To Avoid US Sanctions

BAGHDAD, IRAQ (NINA) - Iraq will have to give up the dollar in trade accounts with Iran under US sanctions against Tehran, the official spokesman for Prime Minister, Haider al-Abadi, Saad al-Hadithi said on Tuesday. Al-Hadithi said in a press statement that "the sanctions will affect, in the first class, on remittances and transactions denominated in US dollars, as the two parties agreed to move away from the dollar." He predicted that "the abandonment of the US currency negatively will affect the trade between the two countries," noting that" it will be difficult to maintain the level of trade under the sanctions imposed on Tehran. " He stressed that the government will develop "a new mechanism to strengthen trade relations between the two sides to reduce the impact of sanctions on the trade of the two countries." The first package of new US sanctions on Iran entered into force last Tuesday and the second package of sanctions is to be implemented in November. The first package includes freezing financial transactions and imports of raw materials, and targeting the automotive and commercial aviation sectors. The sanctions also prohibit the Iranian government from buying or possessing US currency, Tehran's trade in precious metals, commercial transactions in Iranian rials, and activities related to Iran's sovereign debt issuance./ End