While Iran is calling for the release of its frozen funds in Iraq, which is the value of purchases of gas supplied to Iraqi power stations for years in dollars, Baghdad believes that it can pay in Iraqi dinars in light of the US sanctions imposed on Tehran, and that it pays these dues in exchange for humanitarian needs such as food and medicine.
Last Saturday, Iranian President Hassan Rouhani called on Iraqi Prime Minister Mustafa Al-Kazemi to release the funds frozen in Iraq.
Rouhani (right) demanded in a phone call with Al-Kazemi to release the funds frozen in Iraq (agencies)
Dues accrue
The economic advisor to the Iraqi Prime Minister, Dr. Mazhar Muhammad Salih, says that the accumulated funds of Iranian companies are the value of Iraq's purchases of gas supplied to Iraq's power stations, as well as the price of supplying live electricity to some provinces, and these rights accumulate daily with the value of the supply.
Saleh explained in an interview with Al-Jazeera Net that there is a complete ban from the United States on any dealings in dollars or foreign currencies in the form of bank transfers with Iran, indicating that there are humanitarian exceptions represented by the possibility of paying those accumulated rights in cash in favor of Tehran for needs such as food, medicine and some expenses for tourists coming to Iraq, and it shall be paid from the accumulator for those sums and dues and are subject to standards acceptable to all parties.
While the Iranian side affirms that the volume of frozen funds in Iraq is estimated at $ 5 billion, Saleh stressed that the balance is variable and may increase with daily gas and electricity consumption and decrease upon payment.
Saleh indicated that the accumulated funds from Iran are the value of Iraq's purchases of gas supplied to power stations (Al-Jazeera)
Funds are not frozen
Member of the Finance Committee in the Iraqi Parliament, Faisal Al-Issawi, confirmed to Al-Jazeera Net, that Iran's money owed by Iraq is the value of electricity and gas imports, and that the amount is not fixed because it is constantly increasing, considering that it is not frozen, but Iraq cannot transfer it to Iran due to US sanctions.
He added, "If Tehran wishes to receive the money in Iraqi currency, it is possible that it will receive it today, but it wants the amounts in dollars, and this is not in Baghdad's hands, but is subject to Washington's approval.
America is blocking
Financial expert Dr. Mahmoud Dagher emphasized that "all this is taking place with the agreement and knowledge of the US Treasury, as it is forbidden to deal in dollars with Iran, and Iraq can pay in dinars to pay the requirements of the Iranian embassy in Baghdad, and to buy some pharmaceutical and foodstuffs if Tehran so desires."
Dagher - a former general manager of debt at the Central Bank of Iraq, told Al-Jazeera Net that there is a tendency for the payment to be made in the form of payments and in the Iraqi currency, and it cannot be paid in one payment.
It is noteworthy that a member of the governing body in the Iranian-Iraqi Chamber of Commerce, Hamid Hosseini, confirmed, last Sunday, that he had received reliable information related to the release of assets belonging to Tehran, amounting to a total of 3 billion dollars in Iraq, the Sultanate of Oman and South Korea.
Hosseini said, in a press interview, that the information received from Lebanese, Iraqi and Western sources confirms that the United States agreed two days ago to release the frozen Iranian assets in Iraq, and some transactions in this regard have been completed, pointing out that part of the released funds will be used to provide basic commodities. Iran needs.