Foreign remittances surge by 85% in CBI auction

Shafaq News / Foreign remittances increased in the Central Bank of Iraq’s (CBI) auction on Tuesday by 85%, reaching $186 million.

Our correspondent reported that "CBI sold today, during its auction for buying and selling US dollars, $214,597,079, covered by the bank at a base exchange rate of 1305 IQD per dollar for documentary credits and international settlements for electronic cards, and at a rate of 1,310 IQD per dollar for foreign remittances and cash settlements.

Most of the bank's dollar sales went to bolster balances abroad in the form of transfers and credits, totaling $186,317,079, up by 85% from cash sales totaling $28,280,000.

Our correspondent pointed out that six banks purchased cash dollars, while 16 banks met requests to enhance balances abroad.

The total number of exchange companies and intermediaries participating in the auction was 173 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.