Iran- Iraq Chamber Seeking New Channel for Revenue Repatriation

EghtesadOnline: Iran is looking for a new channel to repatriate currency earnings from exports to Iraq, secretary general of the Joint Iran-Iraq Chamber of Commerce said.

News ID: ۷۴۷۴۳۴

26 May 2019

Regarding a directive issued by the Central Bank of Iran, which outlines non-export currency repatriation rules, Hamid Hosseini said the chamber is in talks with the CBI over an alternative channel, different from the one mandated by the CBI, for returning the currency earnings from Iraq.

Sharing details of the plan with Fars News Agency, he said it includes provisions for exporters to sell their earnings in Iraqi dinar and receive the equivalent in rials either from banks or exchange offices in Iraq.

Asked if there is an Iranian bank operating in Iraq, he said negotiations have been held between banking officials from the two sides and the chamber is “awaiting the outcomes of the talks.”

According to Financial Tribune, CBI has obliged exporters of non-petrochemical goods to sell at least 50% of their earnings via  Nima (Integrated Forex Deal System) and 20% in cash to money changers. The balance can be used for importing goods either by the exporting firm or third parties.

Exempting Agro Exports

According to the official, talks are underway with the CBI to exempt exporters of fruit and vegetables to the neighboring country from repatriating their export revenues.

“No decision has been made so far. But in the light of the fact fruits and vegetables are produced in excess of domestic needs, and given the variety of exportable products, it has been proposed that exporters in this group be exempt from currency repatriation,” he noted.

He recalled that despite the high volume of agro exports, their value has not been significant.

“If the government approves the proposal, the problems of small exporters vis-à-vis for exporting these types of products will be solved.”