TEHRAN – Iraq has expressed readiness to establish a joint bank with Iran, Tasnim news agency reported on Monday quoting the secretary general of Iran-Iraq Joint Chamber of Commerce.

“The Issue was discussed during Zarif’s talks with the Iraqi side and the Iraqi Rafidain Bank expressed its readiness to establish branches in Iran.” Hamid Hosseini said.

Mentioning the two countries close economic relations, the official noted that Iran and Iraq’s relation doesn’t completely rely on banking relations.

“We managed to keep our mutual trade during the sanctions and even expand it in some areas.” He said.

Regarding the plans for facilitating export to Iraq, following the recent decision of the Central Bank of Iran (CBI), Hosseini said: "In coordination with CBI plans and according to a framework which will be released soon, our exporters can deliver their dinars to Iranian banks both inside the country or in Iraq and receive its rial equivalent.”

Late last week, the foreign ministers of Iran and Iraq had a phone conversation during which they discussed issues of mutual interest as well as the latest regional and international developments.

During the conversation, Iraqi Foreign Minister Mohammed Ali al-Hakim underlined the need for expansion of cooperation between the two countries in all areas.

Iran is one of the major trading partners of Iraq. Baghdad has resisted pressure by the Trump administration to cut economic ties with Iran since Washington reintroduced sanctions against Iran last May. Iran and Iraq have agreed to trade in euros.

Relations between Iran and Iraq have increased greatly since the fall of Saddam Hussein in Iraq in 2003. Iran was the first country that recognized the governing system in Iraq after the Saddam fall.

EF/MA