Iraqi-Turkish talks yield 4 points to regulate trade between both nations

Shafaq News / A spokesperson from the Iraqi government revealed today that comprehensive discussions have occurred with Turkey to orchestrate trade agreements between the nations utilizing legitimate and officially acknowledged legal and financial channels.

These negotiations aimed at structuring the exchange of goods between Iraq and Turkey on more solid foundations, seeking to alleviate the stress on the parallel market and the need for cash in dollars to support certain aspects of trade between the two countries.

Directed by the Prime Minister, these discussions involved a meeting held on November 15, 2023, which included representatives from the Central Bank of Iraq (CBI), advisers to the Prime Minister, as well as a Turkish delegation led by the Turkish Ambassador, representatives of Turkish banks operating in Iraq, and private sector representatives from Turkey.

Outcomes of the discussions highlighted key points such as the significance of Turkish customs authorities aligning transfer documents with goods supplied to Iraq at Turkish customs points, ensuring the stability and interests of trade.

Additionally, linking Turkish exports to banking transfer documents through Turkish border crossings was stressed for its potential to benefit the Iraqi economy by encouraging the use of financial transfers through the banking system instead of relying on parallel market tools and cash dollars to finance trade with Turkey.

CBI also expressed readiness to ease external transfer procedures by strengthening the connection between Iraqi bank branches in Turkey and Turkish bank branches in Iraq, intending to provide foreign currency accounts and facilitate financing for foreign trade between both nations.

Furthermore, discussions touched upon facilitating the use of credit cards in the Turkish banking market for Iraqi residents and tourists. These initiatives aim to regulate and stabilize trade relations between Iraq and Turkey through legitimate and recognized legal and financial avenues.