A senior advisor to Iran's Supreme Leader says Baghdad is a golden gate through which Iran can communicate with Arab countries.

In a meeting with the Iraqi president in Baghdad, foreign policy advisor to the supreme leader, Kamal Kharrazi, also acknowledged the contribution made by Iraq "to bridge the gap between Tehran and Riyadh.”

Alongside meetings with government officials, Kharrazi, who travelled to Iraq as the head of a delegation on Monday, also met with with Iraqi cleric and politician Sayyid Ammar al-Hakim who is the head of the National Wisdom Movement.

Kharrazi’s trip to Iraq comes after a senior Iraqi official confirmed that his country has acquired a sanctions waiver from the US to pay $2.7 billion of its debt for gas and electricity to Iran.

The Iraqi foreign ministry source said that the funds will be transferred through the Commercial Bank of Iraq and confirmed that the money will be used for Iranian pilgrims' expenses and foodstuffs imported by Iran.