CBI reinforces balances of 13 banks in Chinese yuan
Yuan banknotes. Photo: AFP via Getty Images
Baghdad (IraqiNews.com) – A source in the Central Bank of Iraq (CBI) revealed on Wednesday that it reinforced the balance of 13 banks in the Chinese currency.
The CBI called on merchants and importers to secure their needs of foreign currency through official means, according to the Iraqi News Agency (INA).
The source expected that the number of banks reinforcing their balance in the Chinese currency would increase in the near future.
Merchants and importers can now import their goods from China at the official exchange rate that will be provided by banks dealing in the Chinese currency instead of obtaining the funds they need for their trade from the parallel market, according to the source.
Officials from CBI held intensive meetings with US officials in Abu Dhabi recently to discuss external transfers to cover imports.
A source in the Iraqi government told INA that Iraq strengthened its balances in the yuan currency through the Singapore Development Bank to finance the country’s trade with China by about $12 billion annually.
Baghdad also increased its assets in UAE dirham and is negotiating to increase its balances in euros to finance trade with the European Union.