Foreign transfers surge by 79% in CBI auction

Shafaq News / Foreign transfers increased by 79% in the foreign currency auction of the Central Bank of Iraq (CBI), on Thursday.

Our correspondent reported that CBI sold today during its auction for buying and selling the US dollar, $212,564,732, 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 both foreign transfers and cash sales.

Most of the bank's dollar sales went to bolster balances abroad in the form of transfers and credits, reaching $175,274,723, up by 79%, compared to cash sales totaling $37,290,000.

Moreover, the number of banks that purchased cash dollars was five banks, while the number of banks that fulfilled requests to bolster balances abroad was 18 banks. The total number of exchange companies and intermediaries participating in the auction was 53 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.