Tuesday 05 January 2021
Adopting local currencies in trade relations
A member of the Federation of Businessmen Ahmed Masal asked to go to adopt local currencies in foreign trade transactions.
"The completion of trade with regional countries and beyond is important and facilitates the smoothness of trade performance and is supported by many countries in the world," he said.
"There are international agreements regulating this type of cross-border trade because of the benefits it brings to various economies of the world, and from countries that adopt this type of trade, Malaysia has with its neighbours and other countries," he said.
China relies on many foreign projects, primarily Japanese, using the local Chinese currency (yuan) as a means of settling urgent payments and obligations, which are less vulnerable to fluctuations in the process in foreign exchange rates and avoid the margins of difference required by the dollar transfer process.
He stressed that the volume of trade with neighboring countries and global economic blocs is very large, and needs greater regulation of the cross-border trade process, as Iraq needs many products to cover domestic demand, which necessitates going to international markets to cover the requirements of its domestic market.
[You must be registered and logged in to see this link.]