Source: Iraq's Central Bank Governor in unannounced visit to US to discuss Yuan ban

Shafaq News/ Iraq's Central Bank Governor, Ali al-Allaq, is currently on an unannounced visit to the United States to discuss the Federal Reserve's decision to halt Baghdad's dealings in Chinese yuan, informed sources revealed on Saturday.

Sources told Shafaq News Agency that al-Allaq departed for Washington last Tuesday to meet with officials from the Federal Reserve and the US Treasury Department.

Al-Allaq's discussions with US officials focus on the recent decision to stop Iraq's transactions in Chinese yuan, the sources said. Additionally, the governor is addressing the requirements related to Iraqi banks that have been restricted from dealing in US dollars during his visit.

According to sources, Iraq has decided to cease using the Chinese yuan for financial transactions following a directive from the US Federal Reserve, citing concerns over potential manipulation and transaction irregularities.

Iraq had been leveraging yuan-denominated assets through the Singaporean Development Bank to facilitate trade and imports with China, amounting to about $12 billion annually.