The Central Bank of Iran (CBI) has denied reports it suffered any losses because of converting its dollar debts from Iraq to the currency of the Arab country.

“There has been absolutely no conversion of resources outside of the official mechanisms and on irregular rates,” the CBI said in a Saturday statement covered by the official IRNA news agency.

The statement came after reports suggested Iran had to forfeit some 40% of the debts it is owed for the supply of energy to Iraq because it was forced to receive payments in Iraqi dinar.

Some unconfirmed reports suggest Iraq’s energy arrears to Iran have reached $18 billion. The Arab country has been unable to settle the debts in full because of US sanctions on Iran’s access to the international banking system.

Iraq has been looking for alternative mechanisms to pay the debts and to prevent any disruption to imports of natural gas and electricity from Iran that can be caused by its failure to pay.

“In monetary and financial agreements with Iraq ... the arrangements have been implemented in a way that no losses could be incurred on the country’s foreign exchange assets,” said the CBI statement.

Reportedly, the two countries would resume holding meetings under a key intergovernmental economic committee format years after the initiative was suspended.

By Press TV