In euros and yuan.. The Sudanese advisor explains the mechanism of working in the “equal deal” for trade exchange, 17 nov

 In euros and yuan.. The Sudanese advisor explains the mechanism of working in the “equal deal” for trade exchange

On Wednesday, Mazhar Muhammad Saleh, economic advisor to Prime Minister Muhammad Shia al-Sudani, explained how the “equal deal” for trade exchange works.

Saleh explained that the equal deal involves financing trade exchange between countries using a mechanism of settlement and payment in their respective local currencies.

In simpler terms, trade exchange involves facilitating the trade of commodities between two countries. During this process, the settlement and payment are carried out using the currencies of both countries. As a result, each country retains the currency of the other country.

He explained that the trade process between any two countries in the world is conducted based on free competitive principles. The goods exchanged are priced in the local currency with a fixed exchange rate between the two local currencies. This simple commercial application is currently being used by some Gulf countries with countries like China or India.

According to a government source, Iraq is currently pursuing an “equal deal” initiative whereby trade and imports will be exchanged with certain countries like China and India, using their respective currencies instead of Iraq’s main trading partners like India, China, and some neighboring countries.