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Iraq stops dealing in the Chinese yuan... and a basket of currencies as an alternative
Time: 07/11/2024 09:13:56 Read: 4,134 times
{Economic: Al-Furat News} The Parliamentary Finance Committee revealed that Iraq decided to stop dealing in the Chinese yuan in financial transfers.
Committee member Moeen Al-Kazemi said in a press statement,
“The US Federal Reserve imposed on Iraq to stop dealing in the Chinese yuan currency, under the pretext that there is tampering with some transfers or the occurrence of certain problems.” He believed that
“many of the decisions of the Central Bank must be imposed by the US Federal Reserve,” he said. Al-Kadhimi pointed out that
“Iraq’s money, as we know, is placed in the US Federal Bank as a result of the sale of oil in the amount of 3.5 million barrels per day.
These funds enter the US Federal Bank and are not transferred to Iraq in cash, but rather are transferred to Iraq through transfers issued by the Central Bank and the bank is notified.”
The Federal Reserve Bank then becomes convinced of this transfer and commercial transaction and on the basis of it releases amounts to the concerned authorities exporting to Iraq.” He noted that
"many of the Central Bank's actions are governed by the American will, and
this will may be explained by administrative and financial reasons, lack of financing of terrorism, and others," believing that
"the reasons are political with the aim of putting pressure on the Iraqi government," as he put it.
Regarding the impact of canceling dealing in the Chinese currency, Al-Kadhimi pointed out that
“the merchant and the central bank have multiple options and not deal only with the dollar, so this suspension is temporary and not permanent.”
As for what the Parliamentary Finance Committee will do in this regard, the committee member explained,
“We will demand that the central bank address the issue and that the basket of currencies be diversified, so that there will be more options for the central bank and Iraqi merchants.”
It is noteworthy that Iraq has strengthened its assets denominated in the yuan through the Singapore Development Bank to finance Iraqi trade and imports with China at about 12 billion dollars annually.
Iraq also moved to strengthen its assets in the UAE dirham and negotiated an increase in its euro-denominated assets to finance trade with the European Union.
Iraq also began opening bank accounts in the Indian rupee for a number of Iraqi banks.
Since the beginning of 2023, the Central Bank of Iraq has issued several decisions that would
maintain the stability of the general monetary and economic situation and
confront the risks of fluctuations in the exchange rate of the Iraqi dinar 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, which have accounts with Chinese banks, in the Chinese yuan, as dealing in the yuan directly without the intermediary of the US dollar contributes to
facilitating and accelerating financial transactions, and will
reduce import costs and protect against the risks of exchange rate fluctuations within Iraq.
https://alforatnews.iq/news/العراق-يوقف-تعامله-باليوان-الصيني-وسلة-العملات-بديلاً
