CBI auctions +$240 million in forex on Sunday

Shafaq News / The Iraqi Central Bank's (CBI) sales surged to over $240 million in today's currency auction.

Our correspondent reported that CBI sold $240,715,778 in its auction for buying and selling the US dollar today.

The bank covered these sales at the exchange rate of 1,305 IQD per dollar for documentary credits and international settlements for electronic cards, and at 1,310 IQD per dollar for foreign transfers and cash transactions.

Most of the bank's dollar sales were directed towards bolstering balances abroad in the form of transfers and credits, totaling $230,445,778, representing a 96% increase compared to cash sales, which amounted to $10,270,000.

Furthermore, Three banks purchased cash dollars, while 17 banks met requests to bolster balances abroad.

The total number of exchange companies and intermediaries participating in the auction was 38 companies.

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.