Iraq Pivots to Yuan for China Imports in Defense of Own Currency

Iraq is planning to pay for private-sector imports from China in yuan, injecting foreign currency into the financial system to help ease pressure on the dinar.

The central bank will provide yuan to local lenders for dealings with Chinese counterparts, according to a statement published Wednesday. It will also supply the Chinese currency to final beneficiaries directly via some of the central bank’s own accounts.

OPEC’s second-biggest producer is joining the Middle East’s leading economies, such as Saudi Arabia and the United Arab Emirates, in exploring non-oil trade ties using currencies other than the dollar. The central bank said ...