Central Bank of Iraq’s Dollar Auction: A Significant Surge in External Transfers
On Tuesday, the Central Bank of Iraq reported a remarkable increase in external dollar transfers, reaching over 96% during its latest hard currency auction.
Auction Overview
The Central Bank facilitated the sale of approximately $292.82 million during the auction. The transactions were executed at a base exchange rate of 1,310 Iraqi dinars per dollar for documentary credits and international settlements via electronic cards. External transfers were also priced at 1,310 dinars per dollar, while critical dollar transactions were set at 1,305 dinars each.
Distribution of Dollar Sales
The majority of the dollar sales were directed towards enhancing foreign balances through transfers and credits, totaling approximately $283.37 million, which accounted for 96.86% of the overall sales. In contrast, cash withdrawals amounted to a mere $9.45 million.
Bank Participation
In terms of participation, only one bank leveraged the monetary dollar, whereas six banks actively engaged in requests to augment foreign balances. The total number of exchange companies involved in the auction reached 14.
Conclusion
The Central Bank’s auction reflects a strategic focus on facilitating external transfers, which are crucial for maintaining foreign currency liquidity and supporting the economy. The consistent demand for dollar sales underscores the ongoing resilience and engagement of Iraqi financial institutions in the global market.
