Iraqi economists say it is necessary to get rid of the control of US dollar over RMB settlement

The Central Bank of Irak recently announced the latest measures to improve foreign exchange reserves, including allowing direct settlement of Iraqi trade with China in RMB. In response, Iraqi economist Mashhadani said in an exclusive interview with the head office reporter that Iraqi businessmen wanted to get rid of the control of the US dollar, and it was necessary for the Central Bank of Iraq to decide to turn from the US dollar to the RMB to settle trade with China.

The Central Bank of Iraq issued a statement on February 22 that the direct settlement of trade with China in RMB will be achieved through two ways: first, the increase of RMB reserves through the opening of RMB accounts in Chinese banks by the country's banks; Second, through the accounts of the Central Bank of Iraq in JPMorgan Chase and DBS Bank of Singapur, the US dollar reserves of the country's banks were increased to exchange for RMB.

Iraqi economist Mash Hadani: We predict that the acceptance of RMB settlement will be very high, because many businessmen hope to get rid of the control of the dollar. Iraqi businessmen are under great pressure to exchange currency. They want to get rid of the shackles of the Federal Reserve. It is necessary for the Central Bank of Iraq to decide to shift from US dollar to RMB to settle trade with China, and this measure will also help to further expand the volume of trade.

Iraq is highly dependent on the oil economy, and nearly 90% of the government's budget comes from oil revenue. Affected by the Federal Reserve's continued tightening of monetary policy and the escalation of the crisis in Ukraine, Iraq's oil export revenue has shrunk significantly since last year, and the economy is facing serious challenges. China is Iraq's largest trading partner, and Iraq is also China's third largest trading partner among Arab countries. Mashhadani said that China is a reliable trading partner. Its products are highly recognized in the Iraqi market and it is difficult to find alternatives. On the 21st of this month, the Iraqi government signed an agreement on the exploration and development of six oil and gas fields. Among the three energy enterprises cooperating with the Iraqi side, two are from China.

Iraqi economist Mashhadani: Over the years, Iraqi enterprises and China have maintained good cooperation. If the settlement mechanism is more convenient, we believe that the cooperation between the two sides will be closer.