## Iran Downplays Impact of Bank License Revocation in Iraq
The Iranian government downplayed on Monday the news that three of its banks in Iraq had had their operating licenses revoked. While acknowledging that two of the banks had their licenses canceled two years ago, an Iranian expert described the commercial situation in Iraq as “lawless” and suggested that certain tribes hold more power than the government.
The Iranian website Eqtesad News reported that Yahya Ali Ishaq, head of the Iranian-Iraqi Joint Chamber of Commerce, addressed the issue, stating, ”In Iraq, we had three banks: Bank Melli, Parsian Bank, and the Islamic Cooperative Bank.” He clarified that both Bank Melli and Parsian Bank had not conducted any currency transfers or transactions for the past two years, rendering the recent news irrelevant to their current operations.
Ishaq further emphasized that the cancellation of Bank Melli’s license was not a new development and would not significantly impact financial transactions or cause concern among businessmen.
An Iranian trade expert, Mohammad Ali Nadab, echoed this sentiment, stating that the cancellation of the National Bank’s license had no impact on trade between Iran and Iraq, as trade between the two countries utilizes diverse channels.
Nadab attributed the negative media coverage of the bank closure to the work of “exploiters and brokers” attempting to manipulate the exchange rate.
The expert also pointed out that Iraq lacks a clear trade law and suffers from governance challenges, with certain tribes holding significant power. He concluded that the cancellation of the bank’s license would not affect trade between Iran and Iraq.
Another Iranian trade expert in Iraq emphasized that most of Iran and Iraq’s exports are facilitated through the United Arab Emirates. He confirmed that the recent news had not negatively impacted trade between the two countries, and trading activities continued as usual.
The expert attributed the recent dollar price fluctuations to political tensions rather than the bank license revocation, suggesting that the Iranian government’s handling of the situation and reduced tensions have contributed to a recent improvement in the exchange rate trend.