Iraq-China Trade to be settled in Yuan

By John Lee.

The Central Bank of Iraq (CBI) said on Wednesday that it plans to allow trade from China to be settled directly in yuan, in a renewed attempt to stabilise the value of the Iraqi dinar.

In a statement, it said foreign trade financing will be conducted through direct channels in China using the Chinese yuan currency. There are two available options to facilitate this process:

  1. Reinforcing the account balances of Iraqi banks that have established accounts in Chinese banks which are denominated in Chinese yuan; and,
  2. Strengthening the account balances of Iraqi banks via the CBI, ultimately transferring funds to the final beneficiary in Chinese yuan currency. This can be done through the CBI's accounts with both JP Morgan and the Development Bank of Singapore (DBS).

According to Reuters, the move is the latest sign of the yuan's growing role on the international stage, as China gradually opens up its financial markets, and some countries look to diversify their currency exposures.

Original announcement here (Arabic).

(Sources: CBI, Reuters)

One Response to Iraq-China Trade to be settled in Yuan

  1. Brad 23rd February 2023 at 02:52 #

    Iraq should be very careful with the attempted “Red Capitalism” attempt by Xi! Look at what Xi is doing to the Muslim culture in China!

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