Iran's outstanding receivables in Iraq reach $11 billion, central bank chief says

TEHRAN, Iran — TEHRAN — Iran's outstanding financial receivables in Iraq have reached approximately $11 billion, Central Bank of Iran Governor Abdolnaser Hemmati said in remarks carried by Iranian state television. Of the total, around $7 billion is held in bank accounts, while more than $3 billion is linked to Iran's Oil Ministry. Hemmati described the funds as an important economic resource for Iran and said both sides are discussing mechanisms to use them, including for financing imports and transfers within existing frameworks. He noted that part of the money had previously been used to purchase essential goods, but U.S. sanctions on Iran continue to restrict financial transactions. The Central Bank of Iran is working with the Central Bank of Iraq to overcome those obstacles, Hemmati added. His comments followed talks between the two central banks held during Iraqi Prime Minister Adel Abdul-Mahdi's visit to Tehran. Under a bilateral arrangement, payments for Iranian gas and electricity imports by Iraq are deposited into accounts at the Iraqi central bank and commercial banks. However, U.S. sanctions in place since 2018 have limited the transfer of those funds in foreign currency.