PM Advisor: The first step to regulate trade relationship between Iraq and Turkey

INA - BAGHDAD

The Prime Minister's Advisor for Financial Affairs, Mudher Muhammed Salih, confirmed on Monday, the beginning of the first step to organize the trade relationship between Iraq and Turkey using the two countries' currencies and with solid mechanisms.

“Turkey is one of the three major trading partners from whose Iraqi markets get imported goods and services. The volume of imports from it reaches $14 billion annually. Iraq currently occupies advanced ranks in Turkey’s exports to the world, where it does not advance only by the United States, Germany, and Italy," said Salih to the Iraqi News Agency - INA.

He added, "Unfortunately, it was noted that the regulation of foreign trade financing and settlements between the two countries was mostly carried out through the parallel exchange markets. This matter has two negative repercussions. The first is the noise caused by this irregular and illegal parallel market on the stability of the exchange rate. Its operations are also rare, subject to the risk of money laundering, which is categorically rejected by law in both countries, due to the unacceptable problems it causes that are rejected by the official authorities.”

"The first step in regulating the relationship between the regular markets of the two neighboring countries began through the desire of both parties to improve the means of commercial and economic transparency in a way that serves opportunities for stability and joint investment, as well as to build vital and important strategic bridges between the two countries, including the start of the Development Road project that was announced by PM Muhammed S. Al-Sudani, which links the economies of Asia and the Gulf with Turkey and Europe together, in addition to what Iraq’s important geostrategic role represents in this major development project," he explained.

Salih stressed, "Based on the desire of the Turkish Exporters Union to find relations of understanding and build stable policies between market organizations in the two countries, the joint Iraqi-Turkish committee concerned with market forces has been formed, which will draw positive milestones on the path to stability and development of long-term economic relations, especially in the areas of contracting, trade and investment."

"The two countries' national currencies will be a tool for direct exchange between the two countries, and via solid and stable mechanisms that the Central Bank of Iraq will draw up measures for, including the draft equal deal that supports the stability of commodity supply in Iraq, which the government statement mentioned in this regard," he highlighted.