Iran says its accumulated financial claims in Iraq reach $11 billion

TEHRAN, Iran — TEHRAN — Iran's central bank governor said the country's accumulated financial claims in Iraq have reached approximately $11 billion, with about $7 billion held in bank accounts and more than $3 billion tied to the Iranian Oil Ministry. Central Bank of Iran chief Abdolnaser Hemmati disclosed the figures in remarks to Iranian state television, noting that the funds represent an important economic resource for Iran. Hemmati said Tehran and Baghdad are discussing mechanisms to use the funds for financing imports or making transfers within existing frameworks. He added that part of the money was previously used to purchase essential goods, but U.S. sanctions on Iran continue to restrict financial transactions, and the Central Bank of Iran is working with the Central Bank of Iraq to overcome these obstacles. The disclosure followed talks between the two central banks during Iraqi Prime Minister Mohammed Shia' al-Sudani's visit to Tehran. Under the bilateral arrangement, payments for Iraqi imports of Iranian gas and electricity are deposited into accounts held at the Central Bank of Iraq and Iraqi commercial banks, but U.S. sanctions imposed since 2018 have limited the transfer of these funds in foreign currency.