Iraqi and Irani central banks’ heads Abdolnasser Hemmati and Ali Mohsen Al-Allaq, signed an agreement on the launch of a payment mechanism between the countries in Baghdad, PressTV reported. 

The main objective of the deal is to eliminate obstacles to the payment by the Iraqi side of electricity and gas imported from Iran.

The agreement was signed after the talks of еру delegations at the Ar-Rashid Hotel in the Iraqi capital.

“Currently, we’re witnessing a considerable volume of exports [from Iran to Iraq] in both public and private sectors, but there are shortcomings in banking and monetary exchanges, which have created problems for [Iranian] exporters,” Hemmati said.

After US President Donald Trump unilaterally withdrew from the nuclear deal with Tehran in May 2018 and resumed US sanctions, the Iran’s economy faced serious problems in the banking sector. Thus, Tehran was disconnected from the SWIFT system, which seriously hampered the financial relations of the Iranian business with foreign partners.