{"id":65089,"date":"2023-02-22T16:36:05","date_gmt":"2023-02-22T21:36:05","guid":{"rendered":"https:\/\/olduvai.ca\/?p=65089"},"modified":"2023-02-22T16:36:05","modified_gmt":"2023-02-22T21:36:05","slug":"iraqi-central-bank-to-drop-dollar-for-yuan-in-trade-with-china","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=65089","title":{"rendered":"Iraqi central bank to drop dollar for yuan in trade with China"},"content":{"rendered":"
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Iraqi central bank to drop dollar for yuan in trade with China<\/a><\/h3>\n
Iraq is the latest nation in the Global South to move away from the US dollar in bilateral trade with China<\/strong><\/div>\n<\/div>\n
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\"https:\/\/media.thecradle.co\/wp-content\/uploads\/2023\/02\/Yuan.jpg\"<\/div>\n<\/div>\n
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(Photo credit: AFP)<\/p>\n<\/div>\n<\/div>\n<\/div>\n

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The Iraqi central bank announced on 22 February that, for the first time, it plans to allow trade from China to be settled directly in yuan instead of the US dollar to improve access to foreign currency.<\/p>\n

\u201cIt is the first time imports would be financed from China in yuan, as Iraqi imports from China have been financed in (US) dollars only,\u201d the government\u2019s economic adviser, Mudhir Salih, told\u00a0Reuters<\/em>\u00a0on 22 February.<\/p>\n

According to a statement released by the Iraqi central bank, carrying out transactions in the Chinese currency would boost the balances of Iraqi banks with accounts with Chinese banks.<\/p>\n

However, this option depends on the size of the central bank\u2019s yuan reserves.<\/p>\n

A second option to boost local banks\u2019 yuan balances would involve converting US dollars held in the central bank\u2019s accounts with JP Morgan and the Development Bank of Singapore (DBS) to yuan before paying the final beneficiary in China.<\/p>\n

The Iraqi central bank has been on a mad dash to compensate for a\u00a0dollar shortage<\/a>\u00a0in local markets. This crisis prompted the cabinet to approve a currency revaluation earlier this month.<\/p>\n

Last year, the US Treasury and the Federal Reserve Bank of New York began enforcing stricter controls on international transactions by Iraqi commercial banks, forcing them to comply with specific SWIFT global transfer system criteria to access their foreign reserves.<\/p>\n

The move was allegedly meant to \u201ccurtail money laundering and the illegal siphoning of dollars to Iran and other heavily sanctioned [West Asian] countries.\u201d However, the sudden rules change for Iraqi banks sent the economy\u00a0reeling\u00a0<\/a>as 80 percent, or more of Iraq\u2019s daily US dollar wire transfers could no longer be completed.<\/p>\n

\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Iraqi central bank to drop dollar for yuan in trade with China Iraq is the latest nation in the Global South to move away from the US dollar in bilateral trade with China (Photo credit: AFP) The Iraqi central bank announced on 22 February that, for the first time, it plans to allow trade from […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[124,130,442,33741,33090,827,839,1031],"class_list":["post-65089","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-central-banks","tag-china","tag-iraq","tag-iraqi-central-bank","tag-the-cradle","tag-united-states","tag-us-dollar","tag-yuan"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65089","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=65089"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65089\/revisions"}],"predecessor-version":[{"id":65090,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/65089\/revisions\/65090"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=65089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=65089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=65089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}