"The sanctions will influence, first of all, money transfers and banking operations in the US dollar. The sides will not use the US dollar," al-Hadithi said, adding that the move would result in a decline in trade between the two countries and thus affect the consumers.
He stressed that the Iraqi government would try to find " a new mechanism" in order to support trade relations with Iran.
"In any case, the government will seek to solve all the problems related to this issue, it will look for corresponding mechanisms to neutralize the [sanctions'] influence on the Iraqi market and also prevent the damage caused to the Iraqi citizens' interests," al-Hadithi said,
The statement was made in wake of the first package of US sanctions against Iran, reintroduced on Tuesday, which were previously lifted under the Iran nuclear deal, was reinstated following the United States' withdrawal from the agreement. The sanctions target Iran's acquisition of dollar bank notes, trade in gold and other metals, transactions related to the Iranian rial, as well as the other countries' transactions and trade activities with Iran.
According to the estimates of the Iranian daily Financial Tribute, Iran exported $5.57 billion worth of non-oil goods to Iraq from March 2017 to February 2018, with food and construction materials topping the list of exported commodities. Iran also supplies vehicles and spare car parts, electronics to Iraq.