Central Bank of Iraq supports the exemption from the implementation of sanctions imposed on Iran
04/02/2012 13:16

Baghdad, February 4 (Rn) - The Central Bank of Iraq, Saturday, that Iraq can not join the international community in implementing the terms of international economic sanctions imposed on Iran because it will have a negative impact on the Iraqi economy, which remains under Chapter VII.

And signed the U.S. government in December last December a law imposing sanctions on financial institutions that deal with the Central Bank of Iran's main conduit for Iran's oil revenues, while also the European Union announced a ban on shipments of Iranian oil to be implemented starting from July next.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that "Iraq's participation in the implementation of the economic sanctions on Iran will cause him damage, significant economic, because of dependence on Iran greatly in securing electric power as well as securing his goods essential."

The Iraqi government announced, on Friday, a determination to obtain an exemption from the United States on sanctions imposed on Iran because of the large volume of trade with its neighbor and to protect foreign reserves of the penalties that may be located on the countries that do not implement U.S. sanctions.

The volume of trade exchange between Baghdad and Tehran as well as $ 4 billion that Iraq imported electrical energy by 200 MW from Iran. With regard to Iraq's position on the principle of imposing sanctions, Jawad said that "Iraq can not be involved in imposing sanctions on a country which is under Chapter VII." Jawad added that "the Iraqi government's request from the United States with the exception of Iraq, the implementation of the sanctions comes in the right direction because it would hurt Iraq's economic policy as a private, and that Iraqi society has a real need for the market of Iran."

Under U.S. law, the White House could exempt institutions in the State if such State has reduced its dealings with Iran or in cases where the exemption servant to the interests of U.S. national security or necessary to stabilize the oil market.

Jawad concluded his speech by saying that "Iraq's position comes on the basis of international laws do not prevent civilian trade in accordance with Article 50 of the international law."

Iraq has foreign currency reserves worth $ 60 billion, mostly caused by oil revenues. And facing the countries and companies dealing with Iran to prevent the risk of dealing with the U.S. financial system under the new sanctions.

Iraq seeks to open up areas of multiple investment with regional countries that have participants economical with him, including Iran, Saudi Arabia, Syria, Kuwait, Egypt and other countries, where the volume of trade with Turkey about $ 10 billion while the total volume of trade with Jordan, $ 1 billion and with Syria 2 billion dollars.