Baghdad / NINA / - The expert in economic affairs, Raad Twij, warned against using the Yuan currency in Iraqi trade with China.

Twij said in a statement to the National Iraqi News Agency (NINA): "The use of the Yuan in Iraqi trade with China means, in part, the sale of Iraqi oil in Yuan and this has caveats in making Iraqi oil revenues, under the control of the monetary policy of the Chinese Central Bank, and the possibilities of manipulation the value of the Chinese Yuan and in proportion to the interest of the Chinese economy, which may cause losses to Iraq, both in selling Iraqi oil and in the conduct of commodity trade.

He called for "the use of a basket of cash from a group of international currencies that may preserve the value of the Iraqi dinar."

The Central Bank of Iraq intends to regulate the financing of foreign trade directly from China in the Chinese Yuan currency, in a step that is the first of its kind, as part of a package of measures aimed at facilitating access to foreign currencies.

For his part, the expert in economic affairs, Safwan Qusay, confirmed that dealing with Iraqi trade in foreign currencies requires several important things that must be followed for success.

He said, in a statement to the National Iraqi News Agency (NINA), that "the Central Bank of Iraq is trying to reassess 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 transfer task for the purposes of international trade with the currency of the supplier, especially after 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 thus traders tended to buy the Yuan from the parallel market instead of the official market before the People’s Bank of China (Central) by adjusting the official value of the Yuan more than 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.

The Central Bank of Iraq intends to regulate the financing of foreign trade directly from China in the Chinese Yuan currency, in a step that is the first of its kind, as part of a package of measures aimed at facilitating access to foreign currencies./ End






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