Chairman of the Iran-Iraq Joint Chamber of Commerce Yahya Al-e Es’haq says the Arab country has released $2.7 billion worth of Iranian funds in gas export money owed by the Baghdad government.

Al-e Es’haq stated on Saturday that a part of Iran’s frozen assets in Iraq has been earmarked for the provision of funds needed by Iranian Hajj pilgrims.

Another portion has been used to pay for the provision of basic commodities, the senior Iranian trade official said.

He said the release of Iran’s money in Iraq will have a positive impact on markets as it will meet the demands of the Central Bank of Iran (CBI) and ensure the purchase of staples needed in the country.

As a matter of fact, Al-e Es’haq said, this development can significantly help stabilize the forex market and the provision of basic goods in the country..

Earlier this year, the chairman of the Iran-Iraq Joint Chamber of Commerce said the debt Iraq owes to Iran for import of energy will be paid within the next few months.

“We have found several solutions to receive our debt from the Central Bank of Iraq, so, Iraq’s outstanding payments to Iran will be cleared gradually within the next three to five months,” Al-e Es’haq said on April 11.

US sanctions imposed by former President Donald Trump under the so-called maximum pressure campaign have prevented Iran from accessing a huge amount of its assets in foreign banks.

Iran’s frozen assets in Iraq amount to approximately $7 billion, according to Iranian officials.