Iraq to Allow Chinese Trades to Be Settled in Yuan: A New Era for Trade?

Iraq is making a significant move to reshape its trade dynamics with China. The Central Bank of Iraq (CBI) is planning to settle trade with China in Chinese yuan to improve Iraq's access to foreign currency, a groundbreaking decision that could have far-reaching implications.

BAGHDAD, Feb. 23 (Xinhua) - The Central Bank of Iraq (CBI) is planning to settle trade with China in Chinese yuan to improve Iraq's access to foreign currency.

Iraq’s central bank said on Wednesday it planned to allow trade from China to be settled directly in yuan for the first time, in an attempt to improve the nation's financial standing. This move signifies a shift in approach, aiming to stabilize the Iraqi dinar and enhance access to crucial foreign reserves.

The Central Bank of Iraq plans to allow trade with China to be settled directly in yuan for the first time to improve its access to foreign currency. The settlement of trade in yuan represents a strategic effort to diversify currency options and reduce reliance on the US dollar in international transactions.

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. This decision comes amidst ongoing efforts to strengthen the Iraqi economy and ensure its resilience in the face of global economic fluctuations.

This new policy allows Iraqi businesses to conduct trade with Chinese counterparts using the yuan, potentially streamlining transactions and reducing exchange rate risks associated with dollar conversions. Experts believe this initiative could further solidify the economic partnership between Iraq and China, fostering increased trade volume and investment opportunities.

Stay tuned for further updates on this developing story as we continue to monitor the impact of Iraq's decision to embrace the yuan for trade settlements with China.