File Photo:VCG

Iraq's central bank is reportedly planning to settle trade from China in Chinese yuan for the first time to improve its access to foreign currency.

Iraq has announced that it will finance its imports from China in yuan for the first time, a move aimed at coping with its dollar shortage and seen as a potential step for the internationalization of the Chinese currency, Reuters reported on Wednesday.

The use of the yuan in international trade has seen steady progress in recent years.

The People's Bank of China, the central bank, has on Tuesday appointed a clearing bank for yuan's settlement in Brazil.

In addition, the yuan has seen increased use in Russia as a result of some western countries' sanctions on the country.

There has also been growing discussions of using the yuan in oil settlements between China and Saudi Arabia.

Iraq's economy heavily relies on crude oil export, which accounts for more than 90 percent of the country's revenues, according to Xinhua.

Iraq is the second-largest oil exporters in the Organization of the Petroleum Exporting Countries (OPEC), with its oil export revenue reaching $115.7 billion in 2022, according to AFP.

Global Times