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The Chinese yuan between acceptance and rejection..and the Iraqi economic arena governs
Saturday 04 March 2023 13:56 | Reports and investigations Number of readings: 1609
Baghdad / NINA / Report .. Renas Al-Radi: Opinions differed on the Central Bank's recent decision to use the Chinese currency in Iraqi trade instead of the US dollar, as
some described it as positive, while
others described it as a "political maneuver."
As for the Central Bank, he stressed that its main goal in issuing such a decision is to maintain the stability of the general monetary and economic situation and to face the risks of fluctuation of the Iraqi dinar exchange rate against the US dollar.
Since the beginning of 2023, the Central Bank of Iraq issued several decisions that would maintain the stability of the general monetary and economic situation and face the risks of fluctuation of the Iraqi dinar exchange rate against the US dollar, in addition to facilitating import and export operations by opening new horizons with international banks, including Chinese banks.
Among the decisions of the Iraqi Central Bank is to strengthen the balances of Iraqi banks that have accounts with Chinese banks in Chinese yuan. And the bank stressed:
"The decision requires dealing in the Chinese yuan directly without the mediation of the US dollar in order to facilitate and accelerate financial transactions, and
it will reduce import costs and protect against the risks of fluctuating exchange rates inside Iraq."
But some economists have warned against this decision.
Economist Salam Sumaisem described the issue of dealing in the yuan as a "political maneuver" that will not achieve success in the long term. Sumaisem said in a statement to Nina/,
“The success of this decision requires the existence of a common value that takes place on the basis of evaluating the price of oil on which Iraq depends on one hand and the price of the Chinese yuan on the other hand, that is: how much is it equivalent to? It goes forward."
As for the expert in economic affairs, Raad Twij, he warned against using the yuan currency in Iraqi trade with China, saying:
“Using the yuan in Iraqi trade with China means, in part, selling Iraqi oil in yuan, and this has caveats in making Iraqi oil revenues,
under It governs the monetary policy of the Chinese Central Bank, and the
possibilities of manipulating the value of the Chinese yuan in proportion to the interest of the Chinese economy, which may cause losses to Iraq, whether in selling Iraqi oil or in carrying out commodity trade. Twigg added:
"This decision must be cautious and studied carefully and in detail to know the pros and cons,
calling for" the use of a cash basket of a group of international currencies that may preserve the value of the Iraqi dinar.
A first step of its kind in Iraq, as part of a package of measures aimed at facilitating access to foreign currencies,
while the expert in economic affairs, Safwan Qusay, confirmed:
"The Iraqi trade in foreign currencies requires several important things that must be followed for success." Qusay said in a statement to / Nina/ That
"the Central Bank of Iraq is trying to re-evaluate all monetary policies to control the demand for the dollar in the parallel market by expanding the circle of direct dealings in international currencies, including the
to facilitate the task of final conversion for the purposes of international trade with the currency of the supplier,
especially after If the Central Bank noticed that the adoption of the fixed price of the dinar against the dollar and the increase in the value of the dollar globally caused the decline of the Chinese yuan in the parallel market, and
therefore traders tended to buy the yuan from the parallel market instead of the official market before the People’s Bank of China (the central) adjusted the official value of the yuan and for more From once during the previous periods, in order to preserve its value, which is linked to the migration of most global currencies towards the US dollar, especially after raising interest rates on the US dollar in addition to the Russian-Ukrainian war. And he stressed,
"Dealing in foreign currencies needs to
As for Dergham Muhammad Ali, a specialist in economic affairs, he described
the use of the yuan in foreign trade as an unrealistic option, and
Iraq may be subject to US economic sanctions that destroy its rentier economy, since
So far, the features of the central bank’s decision to deal with the Chinese yuan in trade or in the oil sector have not appeared..and
the Iraqi citizen is waiting for the best for him to break the recent rise in the dollar exchange rate. / End 8
https://ninanews.net/Website/News/Details?key=1038256
Saturday 04 March 2023 13:56 | Reports and investigations Number of readings: 1609
Baghdad / NINA / Report .. Renas Al-Radi: Opinions differed on the Central Bank's recent decision to use the Chinese currency in Iraqi trade instead of the US dollar, as
some described it as positive, while
others described it as a "political maneuver."
As for the Central Bank, he stressed that its main goal in issuing such a decision is to maintain the stability of the general monetary and economic situation and to face the risks of fluctuation of the Iraqi dinar exchange rate against the US dollar.
Since the beginning of 2023, the Central Bank of Iraq issued several decisions that would maintain the stability of the general monetary and economic situation and face the risks of fluctuation of the Iraqi dinar exchange rate against the US dollar, in addition to facilitating import and export operations by opening new horizons with international banks, including Chinese banks.
Among the decisions of the Iraqi Central Bank is to strengthen the balances of Iraqi banks that have accounts with Chinese banks in Chinese yuan. And the bank stressed:
"The decision requires dealing in the Chinese yuan directly without the mediation of the US dollar in order to facilitate and accelerate financial transactions, and
it will reduce import costs and protect against the risks of fluctuating exchange rates inside Iraq."
But some economists have warned against this decision.
Economist Salam Sumaisem described the issue of dealing in the yuan as a "political maneuver" that will not achieve success in the long term. Sumaisem said in a statement to Nina/,
“The success of this decision requires the existence of a common value that takes place on the basis of evaluating the price of oil on which Iraq depends on one hand and the price of the Chinese yuan on the other hand, that is: how much is it equivalent to? It goes forward."
As for the expert in economic affairs, Raad Twij, he warned against using the yuan currency in Iraqi trade with China, saying:
“Using the yuan in Iraqi trade with China means, in part, selling Iraqi oil in yuan, and this has caveats in making Iraqi oil revenues,
under It governs the monetary policy of the Chinese Central Bank, and the
possibilities of manipulating the value of the Chinese yuan in proportion to the interest of the Chinese economy, which may cause losses to Iraq, whether in selling Iraqi oil or in carrying out commodity trade. Twigg added:
"This decision must be cautious and studied carefully and in detail to know the pros and cons,
calling for" the use of a cash basket of a group of international currencies that may preserve the value of the Iraqi dinar.
A first step of its kind in Iraq, as part of a package of measures aimed at facilitating access to foreign currencies,
while the expert in economic affairs, Safwan Qusay, confirmed:
"The Iraqi trade in foreign currencies requires several important things that must be followed for success." Qusay said in a statement to / Nina/ That
"the Central Bank of Iraq is trying to re-evaluate all monetary policies to control the demand for the dollar in the parallel market by expanding the circle of direct dealings in international currencies, including the
Chinese yuan, the
European euro, the
Japanese yen and the
US dollar
to facilitate the task of final conversion for the purposes of international trade with the currency of the supplier,
especially after If the Central Bank noticed that the adoption of the fixed price of the dinar against the dollar and the increase in the value of the dollar globally caused the decline of the Chinese yuan in the parallel market, and
therefore traders tended to buy the yuan from the parallel market instead of the official market before the People’s Bank of China (the central) adjusted the official value of the yuan and for more From once during the previous periods, in order to preserve its value, which is linked to the migration of most global currencies towards the US dollar, especially after raising interest rates on the US dollar in addition to the Russian-Ukrainian war. And he stressed,
"Dealing in foreign currencies needs to
- control the movement of imports by dealing with regular merchants and
activating the role of local banks in financial transactions through documentary credits and controlled transfers, which contributes to the consolidation of the Iraqi trade system and thus
expand dealing with international brands and
control the movement of imports and
attract investment and
stop the arrival of the dollar." To the sanctioned countries and the survival of Iraq within the US dollar zone.
As for Dergham Muhammad Ali, a specialist in economic affairs, he described
the use of the yuan in foreign trade as an unrealistic option, and
Iraq may be subject to US economic sanctions that destroy its rentier economy, since
- Iraqi oil sales are exclusively in the dollar currency and that
the area of the yuan currency is very limited globally and
does not cover even 10 percent of Iraq imports. Muhammad Ali said,
"The conversion from the dollar to the yuan requires the payment of conversion commissions, and the
United States may subject Iraq to economic sanctions that destroy its rentier economy, which is based entirely on imports."
So far, the features of the central bank’s decision to deal with the Chinese yuan in trade or in the oil sector have not appeared..and
the Iraqi citizen is waiting for the best for him to break the recent rise in the dollar exchange rate. / End 8
https://ninanews.net/Website/News/Details?key=1038256
