The Central Bank of Iraq plans to allow trade with China to be settled directly in yuan for the first time to improve its access to foreign currency.
The settlement of trade in the Chinese currency instead of the US dollar will help the Iraqi central bank to “stabilise exchange rates”, it said in a statement on its website.
The move is part of a series of measures by the central bank to address a dollar shortage in local currency markets that forced Iraq’s cabinet to allow a currency revaluation earlier this month.
The latest announcement is “in addition to what was announced in the first package of facilities provided by the central bank to stabilise exchange rates”, the regulator said.
The central bank said it has options, the first being measures to boost the balances of Iraqi banks that have accounts with Chinese banks in the yuan.
“The second option: strengthening the balances of Iraqi banks through the accounts of the central bank to the final beneficiary in the Chinese yuan, through our accounts with JP Morgan and the Development Bank in Singapore,” the regulator said.
“It is the first time imports would be financed from China in yuan, as Iraqi imports from China have been financed in [US] dollars only,” Reuters quoted the government’s economic adviser, Mudhir Salih, as saying on Wednesday.
The first option would depend on the central bank’s yuan reserves while the second would rely on the bank’s US dollar reserves at JP Morgan and DBS.
The two banks would convert the dollars to yuan and pay the final beneficiary in China, Mr Salih said.
Although the move is aimed at tackling dollar shortages and stabilising the Iraqi dinar, it also signifies the growing importance of the Chinese currency in international markets.
On February 7, the Iraqi government approved a currency revaluation to strengthen the dinar against the dollar.
The cabinet set the official exchange rate at 1,300 Iraqi dinar per US. The revaluation plan was submitted by the central bank after the Iraqi dinar shed more than 10 per cent of its value in recent months.
For years, the official rate for banks and exchange companies was 1,182 dinars per dollar while the rate on the street was about 1,200 dinars.
Amid a liquidity crisis due to plummeting oil prices on the international market, Iraq’s central bank devalued the dinar in December 2020 to 1,460 dinars per dollar for banks and 1,470 dinars for individuals.
But since December, the Iraqi dinar has wavered against the dollar as the Federal Reserve Bank of New York introduced measures to stop the flow of dollars to sanctioned countries, mainly Iran, through a state-run currency auction.
The US has blacklisted several Iraqi banks over suspicious foreign transactions. New measures have been brought in to scrutinise the process of releasing money from the US to cover imports and other needs.
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How Apple's credit card works
The Apple Card looks different from a traditional credit card — there's no number on the front and the users' name is etched in metal. The card expands the company's digital Apple Pay services, marrying the physical card to a virtual one and integrating both with the iPhone. Its attributes include quick sign-up, elimination of most fees, strong security protections and cash back.
What does it cost?
Apple says there are no fees associated with the card. That means no late fee, no annual fee, no international fee and no over-the-limit fees. It also said it aims to have among the lowest interest rates in the industry. Users must have an iPhone to use the card, which comes at a cost. But they will earn cash back on their purchases — 3 per cent on Apple purchases, 2 per cent on those with the virtual card and 1 per cent with the physical card. Apple says it is the only card to provide those rewards in real time, so that cash earned can be used immediately.
What will the interest rate be?
The card doesn't come out until summer but Apple has said that as of March, the variable annual percentage rate on the card could be anywhere from 13.24 per cent to 24.24 per cent based on creditworthiness. That's in line with the rest of the market, according to analysts
What about security?
The physical card has no numbers so purchases are made with the embedded chip and the digital version lives in your Apple Wallet on your phone, where it's protected by fingerprints or facial recognition. That means that even if someone steals your phone, they won't be able to use the card to buy things.
Is it easy to use?
Apple says users will be able to sign up for the card in the Wallet app on their iPhone and begin using it almost immediately. It also tracks spending on the phone in a more user-friendly format, eliminating some of the gibberish that fills a traditional credit card statement. Plus it includes some budgeting tools, such as tracking spending and providing estimates of how much interest could be charged on a purchase to help people make an informed decision.
* Associated Press
Indoor cricket in a nutshell
Indoor Cricket World Cup - Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
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