CBI auctions +$1 billion in a week

Shafaq News / The Central Bank of Iraq's (CBI) total sales of hard currency during the auction days of the past week amounted to over one billion dollars, surpassing five billion dollars in May.

According to an official statement by the Bank, CBI sold $1,328,251,675 over five days last week, with an average daily sale of $265,650,335, recording a decrease from the previous week’s sales, which totaled $1,377,611,020.

The highest sales occurred on Tuesday, reaching $283,073,871, while the lowest sales were on Thursday, at $269,299,132.

Foreign transfers accounted for $1,328,251,675, representing a 90% increase compared to cash sales, which amounted to $132,825,167.

The sales were conducted in the form of cash and foreign transfers to finance international trade. The selling price for credit and international settlements for electronic cards was 1,310 IQD per dollar. The selling price for foreign transfers was also 1,310 IQD per dollar, while the cash selling price was 1,305 IQD per dollar.

Economic expert Nabil Al-Marsoumi commented on Facebook, noting that CBI's sales in May reached $5.8 billion, a significant amount indicating that 70% of oil revenues were used to cover private sector imports and citizens' travel expenses.

He added that “when considering government imports, expenses of oil licensing companies, and the government's external commitments, including external debt installments—all paid in dollars—the situation becomes concerning. This suggests that CBI's foreign reserves are on a declining trajectory.”

Al-Marsoumi also highlighted the potential for increased external debt, higher imports, or falling oil prices, exacerbating the issue.