US renews sanctions waiver, enabling Iraq to pay for Iran’s electricity
The United States Treasury Department building in Washington, D.C. Photo: Alabama Political Reporter
Baghdad (IraqiNews.com) – The spokesperson of the US State Department, Matthew Miller, said in a press conference on Thursday that the US had extended a 120-day waiver that permits Iraq to pay Iran for electricity supplies.
Last year, Washington started granting exceptions, emphasizing that the funds may only be utilized for non-sanctioned transactions such as the purchase of humanitarian goods, including food and agricultural products.
The governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, disclosed that he had discussions with the US Treasury to reevaluate the sanctions imposed on Iraqi banks, according to the Iraqi News Agency (INA).
Al-Alaq and the Parliamentary Finance Committee talked about a number of topics, including the discrepancy between official and parallel market pricing for the US dollar.
The governor of the CBI explained that the main reason behind the instability of the US dollar exchange rate is the illegal trade carried out by small merchants and some speculators, indicating that this illicit trade is financed by cash money from the parallel market.
The Iraqi official clarified that local currency printing is done in a manner that balances foreign and local currency and avoids inflation, as well as in compliance with the necessary financial cover.
Al-Alaq revealed that there are ongoing meetings with the US Treasury, noting that the two sides agreed to reconsider the sanctions imposed on Iraqi banks.