The deal on the payment mechanism was signed in a meeting between Iran’s Abdolnaser Hemmati and Iraq’s Ali Mohsen al-Allaq in Baghdad on Tuesday night.
Speaking at the meeting, Hemmati described Iraq as Iran’s biggest trade partner and said banking relationship is the factor needed for the durability of bilateral ties between the two countries.
Hemmati further pointed to the US sanctions against Iran and said by waging an economic war against the Islamic Republic, Washington has made extensive efforts to disturb the economic and political conditions of Iran.
However, he added, with the arrangements made by Iran, fortunately, the enemy plots have been thwarted and the Iranian economy has become stable.
In addition to natural gas and electricity, Iraq imports a wide range of goods from Iran including food, agricultural products, home appliances, and air conditioners.
Speaking at a joint press conference with Iraqi President Barham Salih in Tehran in November, Iranian President Hassan Rouhani said the value of trade and economic interaction between Tehran and Baghdad stands at around $12 billion, adding that the two neighbors have the potential for a $20-billion trade target.
Rouhani hoped that cooperation between Tehran and Baghdad would contribute to regional security and stability.