Iraq Trade With China in Yuan Does Not Apply to Oil

Photo by Levi Meir Clancy on Unsplash

Summary:

Iraq’s central bank said today it was planning to allow trade from China to be settled in yuan, as a measure to “improve access to foreign currency,” Reuters and Iraqi media reported.

The central bank said on its website that this was an attempt to “stabilize” the (Iraqi dinar/US dollar) exchange rate, which has been affected by the latest tight controls imposed by the New York Federal Reserve on the flow of dollar transactions from Iraq’s commercial banks. This was an attempt to curb the movement of dollars to neighboring Iran.

EOA’s Main Takeaway: