The UAE and Iraq agree to trade in AED: First Abu Dhabi Bank (FAB) and the Central Bank of Iraq agreed on Wednesday to finance trade and imports in AED, Iraq’s state news agency reports. The banks also signed an agreement to move funding between their accounts, with the first transfer going through yesterday with five Iraqi banks.

REMEMBER- Iraq has been suffering from an ongoing FX shortage, with Trade Bank Iraq (TBI) receiving USD shipments just last week to curb the shortage. The country has been exploring the potential of trading with countries in currencies other than the USD, as well as implementing measures like limiting FX withdrawals, in a bid to dedollarize its economy.

Meanwhile, the UAE has been actively shifting away from the USD in its trade with several countries, including India. The two countries started to pay for crude oil shipments in local currencies last August.

OTHER UAE DIPLO NEWS- Australia will initiate negotiations on a trade agreement with the UAE in 2024, Australia’s Trade Minister Don Farrell said in a ministry statement. The decision is part of Australia’s strategy to broaden its export markets and reduce dependence on China.

Background: Negotiations with the UAE began after the collapse of trade talks with the European Union in October. Australia attributed the breakdown to inadequate market access for its agricultural products, Reuters reports. “The Government is committed to securing a trade agreement with the UAE to drive Australian exports, economic growth and create more well-paying jobs across the country,” Farrell said in the statement.

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