Iran is considering paying the Iraqi Dinar in the $10 billion trade to Iraq eliminating the USD currency. If the trade is successful, the Iraqi Dinar could be the alternative currency between Iran and Iraq going forward and not the U.S. dollar. Replacing the dollar to Dinar could further weaken the greenback and make the currency difficult to fund its deficit
The head of the Iran-Iraq Chamber of Commerce Yehya Eshaq said both countries want their national currencies to be traded. Eshaq added that a handful of countries are joining hands to break America’s hegemony on global finances. The use of local currencies for global trade is the first step to bring the dollar down, he said.
Eshaq added that the government of Iran aims to undermine the U.S. dollar’s global dominance going forward. “By favoring the Dinar over the Dollar in trade operations with Iraq, we are actively undermining the dollar’s dominance in our import-export transactions as part of a wider governmental strategy