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Monetary agreements require equalized trade balances

Tehran, An official of Iran's chamber of commerce said that trading with other countries based on bilateral and multilateral monetary agreements requires roughly equal imports and exports.

Hossein Selahvarzi referred to the removal of dollar from banking operations of Iran, and said, Payments under these agreements are made with national currencies which automatically equalizes the trade balance.

The Vice-chairman of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) noted that signing monetary agreements with China and is possible because the imports from those countries can be counterbalanced with our oil exports.

'Out trade relations with Iraq does not let us make such agreements because Iran-Iraq trade balance is unparallel,' he added.

According to Iran Trade Promotion Organization (ITPO), Iraq's export to Iran is about one percent of the total trade between the two countries ($6.5b), thus a monetary agreement cannot be made easily.

Recently, Chairman of Iran-Iraq Joint Chamber of Commerce Yahya Ale-Es'haq said that Euro, Rial and Dinar are currently used in monetary transactions between the two countries instead of dollar.

Source: Islamic Republic News Agency - IRNA

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