In a week marked by significant financial movement, the Central Bank of Iraq (CBI) has reported a sharp increase in its sales of hard currency, with total sales exceeding $801 million. This marks an increase compared to the previous week’s sales, indicating a heightened economic activity in the region.
Surge in Currency Sales
The sales were conducted over five days, with an average daily sale amounting to $160,226,899. The most substantial sales were recorded on Thursday, with a staggering total of $208,387,458, emphasizing the robust demand for hard currency in the Iraqi market.
Foreign remittances for the week were not far behind, reaching $854,800,397, showing a significant increase compared to cash sales. This surge in remittances reflects the increasing globalization and interconnectedness of the Iraqi economy.
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Exchange Rates and Market Dynamics
The exchange rate for documentary credits and international settlements was pegged at 1,305 IQD for every US dollar. Meanwhile, the rate for foreign remittances and cash sales was slightly higher, standing at 1,310 IQD for every US dollar.
Economic expert Abdul Rahman Al Mashhadani attributed the rise in dollar prices to the parallel market, which meets trade requests with countries sanctioned by the US. He further pointed out that financing the drug trade also contributes to the rise in dollar prices.
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Proposed Solutions and Future Outlook
Al Mashhadani highlighted the need for a cultural shift towards relying on the banking system for financial transactions and emphasized the potential of investing in tourism in Iraq. Another expert, Safwan Qusay, underscored the importance of attracting Russian investments to Iraq and diversifying sources of investments.
In related news, Al Rafidain Bank announced the launch of an online dollar reservation system for travelers, a move aimed at facilitating currency exchange for those traveling outside Iraq.
Conclusion
The Central Bank of Iraq’s substantial sales of hard currency point to an active economy with robust demand for foreign currency. The bank’s initiatives to facilitate currency exchange and the call for more reliance on the banking system and diversified investments underscore the evolving financial landscape in Iraq.
https://bnn.network/finance-nav/central-bank-of-iraq-records-surge-in-hard-currency-sales/
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