Iranian Parliament Speaker Mohammad Ghalibaf on Friday urged Baghdad to reduce its reliance on the dollar and draw up what he called a “precise roadmap” for economic cooperation between the two countries. Ghalibaf made the remarks during a visit to the southwestern Iraqi city of Najaf, as the region awaits what has been described as an unprecedented package of US sanctions on Iran and its trading partners. Iran must plan to overcome what Ghalibaf called “unjust sanctions,” after US Treasury Secretary Scott Bessent announced what he described as the toughest sanctions ever imposed on Iran, according to Reuters. Earlier, at a consultative meeting with business figures at the Iranian embassy in Baghdad, Ghalibaf called for a “precise roadmap” for economic ties with Iraq that would include moving away from the US dollar. He said the two countries should end their reliance on the US currency and use local currencies in trade. “The era of US dominance over the world has ended, but we have not made proper use of the opportunities available to us, and we are still conducting trade through outdated methods,” Ghalibaf said. Iraq relies entirely on the dollar for its oil exports, which generate more than 90% of national revenues. The proceeds are deposited in US dollars into an account held in the name of the Central Bank of Iraq at the Federal Reserve Bank of New York. ‘Difficult and trying circumstances’ In stark contrast, Iraqi Prime Minister Ali al-Zaidi sought to reassure public-sector employees and pensioners that monthly salaries and government payments were fully secured, even as he warned that Iraq was facing “difficult and trying circumstances” due to regional developments and disruptions to oil exports through the Strait of Hormuz. Speaking at the Baghdad Dialogue conference, organized by the Iraqi Institute for Dialogue, al-Zaidi said Iraq faced major economic challenges and described the closure of the Strait of Hormuz as a key obstacle. The strait, he said, “was not closed even during the harshest days of the blockade.” Al-Zaidi said the government had found alternative routes for oil exports and activated border crossings to bolster trade, adding that the state had “more than one solution” to preserve economic stability and contain the fallout from the crisis. He said Iraq was working to expand oil exports through Türkiye’s Ceyhan port, while efforts continued to develop export routes through Banias and Aqaba. “We are working to increase Iraq’s export quota through OPEC, and we aim to reach 8 million to 10 million barrels per day within six years,” al-Zaidi said. “Iraq fought ISIS on behalf of the region and the world, and it is only fair that it receive a crude oil export quota commensurate with the size of its population and its oil reserves.” On the political front, al-Zaidi said political forces were in full agreement that the government should press ahead with its anti-corruption campaign. He described “the battle against the looting of public funds” as a matter of honor for him. The government launched an operation dubbed “Dawn Crackdown” on June 28 to combat the looting of public funds. The operation has targeted political officials, lawmakers, and businesspeople.
