CBI auctions +$249 million in forex on Monday

Shafaq News / The Iraqi Central Bank's (CBI) sales in the currency auction on Monday amounted to more than $249 million.

Our correspondent reported that CBI sold today, during its auction $249,950,923, covered at an exchange rate of 1305 IQD per dollar for documentary credits and international settlements for electronic cards, and at a rate of 1310 IQD for external transfers and cash transactions.

Most of the bank's dollar sales went to bolstering balances abroad in the form of transfers and credits, totaling $235,620,923, an increase of 94% compared to cash sales totaling $14,330,000.

Notably, five banks purchased cash dollars, while 15 banks met requests to enhance balances abroad. 

The total number of exchange and brokerage companies participating in the auction was 71.

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.