Iraq to adopt yuan in trade with China
Packs of U.S. dollars and Chinese yuans. Photo: Reuters
Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) announced on Wednesday that the financing of foreign trade with China will be regulated directly and in the Chinese yuan through two options.
The CBI explained in a statement that the first option includes strengthening the balances of Iraqi banks that have accounts with Chinese banks in the Chinese yuan.
The CBI added that the second option includes strengthening the balances of Iraqi banks through the accounts of the CBI, in the Chinese yuan, with the J.P. Morgan bank, and the Development Bank in Singapore.
The statement elaborated that facilities for financial transfers to the United States and Europe will be provided by the same mechanism later.
The documents required for external remittances will include only a commercial invoice, or letters of credit, provided that the customer later submits a proof that the goods entered Iraq to the bank, the statement clarified.
Financial settlements for money transfer companies, such as Western Union and Money Gram, will be organized through Class A money exchange companies through an Iraqi bank, with one settlement account for all of these companies, the statement explained.
The CBI indicated that citizens can transfer amounts up to 7,500 USD per month through the money transfer companies at the official exchange rate, 1320 dinars against the U.S. dollar, while the CBI is enhancing the accounts of these companies through the foreign currency platform.