CBI auctions +$256 million in forex on Wednesday

Shafaq News / On Wednesday, the Iraqi Central Bank's (CBI) sales surged, surpassing $256 million in today's auction.

Our correspondent reported that CBI sold $256,413,014 in its auction for buying and selling the US dollar today. The bank covered these transactions at a base 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.

The majority of the bank's dollar sales were allocated to bolstering foreign balances in the form of transfers and credits, totaling $244,703,014, representing a 95% increase compared to the cash sales, which amounted to $11,710,000.

Moreover, six banks purchased cash dollars, while 14 banks met requests to enhance foreign balances.

The total number of exchange and brokerage companies participating in the auction was 106.

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

These auctions enable banks and financial organizations to buy and sell foreign currency, usually the US dollar, to meet the needs of importers, travelers, and other entities that require foreign exchange.

The auctions are an important instrument for the CBI in controlling inflation, managing liquidity in the banking system, and maintaining confidence in the national currency.

In addition, it helps to control Iraq's balance of payments by managing the movement of foreign cash in and out of the country.

Monitoring the results and trends of these auctions offers information about Iraq's general economic health and financial stability.