Iraq bolsters foreign exchange assets to finance trade

Iraq bolsters foreign exchange assets to finance trade

Officials from the Central Bank of Iraq (CBI) recently met with US officials in Abu Dhabi to discuss covering imports with external transfers.

A source within the Iraqi government has revealed that Iraq has increased its yuan currency assets through the Singapore Development Bank. This move is to finance the country’s trade with China, with an estimated annual budget of $12 billion.

The oil-rich country increased its assets in UAE dirham and is negotiating to increase its euro assets for trade with the EU.

During meetings with US officials, the CBI agreed to increase the balance of five Iraqi banks in Jordan through JP Morgan.

According to the source, there are severe negotiations in their final stages to enhance the balances of some Iraqi banks in euros with UBAF Bank for financing trade with the European Union.

Six Iraqi banks have opened accounts at the Singapore Development Bank to finance Iraq’s imports from China, with plans to add seven more.