Banking and FinanceConstruction

Iraq Central Bank Sells Over $300 Million in Currency Auction

Central Bank Sees Strong Demand in Hard Currency Auction

In a notable development for the foreign exchange market, the central bank’s hard currency auction on Sunday recorded sales exceeding $300 million.

According to reports, the bank successfully sold a total of $300,744,120 at a foundational exchange rate of 1,310 Iraqi dinars per dollar for both documentary credits and international settlements involving electronic cards. Additionally, external transfers were also priced at 1,310 dinars per dollar, while cash transactions were available at a rate of 1,305 dinars per dollar.

Most of the dollar sales were directed toward bolstering foreign balances, through transfers and credits totaling $275,944,120. This contrasts with cash withdrawals, which accounted for $24,800,000.

Furthermore, the data indicates that only one bank participated in the purchase of cash dollars, whereas 21 banks handled requests for strengthening foreign balances. Among the participants in this auction were five exchange companies.

Auction Details Amount (USD) Exchange Rate (Dinar per Dollar)
Total Sales $300,744,120
Document Credits & Electronic Cards $275,944,120 1,310
External Transfers $275,944,120 1,310
Cash Withdrawals $24,800,000 1,305
Participating Banks (for Cash) 1
Banks for Foreign Balances 21
Exchange Companies 5

The auction’s results signify robust engagement in the currency market, reflecting the ongoing strategies employed by the central bank to manage foreign currency liquidity.

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