Iraq and Lebanon extend a deal to barter oil for services
Lebanon stroke two deals to extend energy imports from Iraq. Similarly to the original deal, the two new deals are also based on barter. Particularly, Lebanon will offer services for Iraqis in exchange for oil.
De-dollarisation via barter ensures the US cannot veto such deals and protects against extreme fluctuations in the Lebanese lira. Syria also de-dollarised part of its trade with Iran via barter.
De-financialising trade is a response to sanctions and is used in cases when the domestic currency is too volatile to be referenced for trade in national currencies.
While the scale of barter trade remains limited in the region, for more than a decade, more countries are leaning on it. This is a trend that is likely to continue as more countries seek to de-dollarise part of their trade.