2023-11-08 18:18:18
November 8, 2023
Baghdad/Al-Masala Al-Hadath: Opinions reveal many benefits for Iraq from selling oil in the Chinese yuan and using its amounts to settle commercial transactions with countries sanctioned by the United States.
Al-Masala financial sources reported that this pattern of financial dealings will reduce reliance on the US dollar, which Iraq relies heavily on in settling its commercial transactions, which makes it vulnerable to US sanctions.
Selling oil in Chinese yuan is a way to reduce this dependence, which enhances the independence of the Iraqi economy.
China is Iraq’s largest trading partner, representing more than 40% of Iraq’s exports and more than 20% of its imports. Selling oil in Chinese yuan is a way to strengthen economic relations between the two countries, which opens new horizons for cooperation in other fields.
The Chinese yuan has become a global reserve currency and is used to settle commercial transactions in many countries around the world. It could be a way for Iraq to expand its foreign markets and increase exports to new countries.
Global oil prices are linked to the US dollar, so the decline in the value of the US dollar leads to a decline in oil prices, and the Chinese yuan can be a way for Iraq to reduce the negative effects of global oil price fluctuations.
According to economic experts, using oil sales amounts in Chinese yuan to settle commercial transactions with countries sanctioned by the United States provides Iraq with the possibility of continuing to trade with these countries without being subject to American sanctions. The most important of these countries are Iran, Syria, Lebanon, and North Korea.
Economist Nabil Al-Marsoumi said on Sunday that Iraq’s exports of black oil in 2022 amounted to more than $4 billion.
The economic expert explained in a blog post followed by Al-Masala that Iraq can sell black oil in euros or Chinese yuan and use the amounts to settle commercial transactions with countries sanctioned by America, especially Iran.
Al-Marsoumi pointed out that “if this happens, the exchange rate of the dollar in the parallel market will decline significantly,” pointing out “the necessity of this being preceded by an understanding with the US Federal Bank and obtaining its approval.”
Obelisk – follow-up – agencies
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