CBI auctions +$200 mn on Wednesday

Shafaq News / The sales of foreign remittances at the Iraqi Central Bank (CBI) auction rose, on Wednesday, surpassing $201 million.

Our correspondent reported that CBI sold today, during its auction for buying and selling US dollars, $210,932,703, covered by the bank at an exchange rate of 1,305 IQD per dollar for documentary credits and international settlements for electronic cards and at a rate of 1,310 IQD per dollar for external transfers and cash transactions.

Most of the bank's dollar sales went to bolster balances abroad in the form of remittances and credits, amounting to $201,825,703, a 95% increase from the cash sales of $9,080,000.

Furthermore, five banks purchased cash dollars, while 17 banks fulfilled requests to bolster balances abroad.

The total number of exchange and intermediary companies participating in the auction was 95.

Noteworthy, CBI conducts regular currency auctions to manage the country's monetary policy and stabilize the exchange rate of the local currency.

These auctions serve as a mechanism for banks and financial institutions to buy and sell foreign currency, primarily the US dollar, to meet the demands of importers, travelers, and other entities requiring foreign exchange.

The auctions are a crucial tool for CBI to control inflation, manage liquidity in the banking system, and maintain confidence in the national currency.

Additionally, the auctions play a role in regulating the flow of foreign currency in and out of the country, helping to manage Iraq's balance of payments.

Monitoring the results and trends of these auctions provides insights into the overall economic health and stability of Iraq's financial system.