Iraq Activating Iran Payment Mechanism

Iran and Iraq will invoke past agreements to expedite settlement of Iraqi arrears using a trading mechanism designed to supply basic goods to Iran. 
Governor of the Central Bank of Iran Abdolnasser Hemmati made the statement on Wednesday following a meeting with his Iraqi counterpart Ali Mohsen Ismael Al-Alaq in Baghdad, the CBI website reported.   
“We had signed deals in previous trips. It was agreed that we use our resources in Iraq for purchasing basic goods that are not subject to [US] sanctions,” Hemmati said, referring to deals between the two neighbors in February 2019.  
The agreement signed by the governors of the two central banks called for setting up a monetary channel to facilitate bilateral payments.