CBI auctions +$282 million in forex on Tuesday

Shafaq News / The Iraqi Central Bank's (CBI) currency auction sales rose to $282 million on Tuesday.

According to an official statement by the Bank, CBI sold $282,624,465 in its auction, covering it 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, both electronically and in cash.

Most of the dollar sales were allocated to bolster balances abroad through transfers and credits, totaling $257,194,465, marking a 93% increase from the cash sales of $25,430,000.

Furthermore, six banks purchased cash dollars, while 13 banks met requests to boost balances abroad.

A total of 170 currency exchange and intermediary companies participated in the auction.

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.