Ahmad Alavi, a university professor and economist, said that the halt in transferring cash dollars to Iraq, along with the prevalence of the informal economy, corruption, and commercial ties between Tehran and Baghdad, increases pressure on the Islamic Republic’s financial routes, although due to the long border and informal networks, circumventing restrictions remains possible.

Alavi added that restricting access to currency makes it harder to import raw materials and intermediary goods and, as a result, affects production, employment, and the activities of industrial units. According to him, this trend will lead to higher inflation, rising prices, and shortages of some goods, especially in the pharmaceutical sector and raw materials.