Iran has reached an agreement with the United Arab Emirates (UAE) to facilitate trade movement between their countries using the Emirati currency, the dirham. In another deal with Baghdad, Tehran agreed to a new mechanism for the settlement of payments related to Iraqi energy arrears to Iran.
Agreements with the UAE and Iraq will likely have a positive impact on Iran’s currency, the rial, and foreign currency market, said Secretary of Iran's Supreme National Security Council (SNSC) Ali Shamkhani.
In statements upon his return to Tehran, Shamkhani said his trips to China and the UAE achieved important results and, therefore, it was decided that this process should continue with the trip to Iraq.
Shamkhani explained that the results of his recent visits to Baghdad, Abu Dhabi, and Dubai, had followed his return from Beijing with an agreement with Saudi Arabia to resume diplomatic relations.
On March 10, Iran and Saudi Arabia announced that they were re-establishing ties - severed since 2016 - following surprise negotiations hosted by China over a period of four days. The Kingdom and Iran agreed to restart diplomatic ties within two months.
Regarding the new agreement with Iraq, Shamkhani said new mechanisms will allow Iran to use its arrears, currently frozen in Iraqi banks due to the US sanctions, to purchase essential goods.
Shamkhani was accompanied on his visits by the governor of the Central Bank of Iran and officials from the economic, political and security sectors.
“We were able to reach common and effective solutions regarding removing some of the obstacles in the way of comprehensive cooperation,” he said about intensive talks with Iraqi officials.
