Demand for the dollar was sharply down in the Iraqi Central Bank's auction on Sunday, registering at $ 35.440 million compared to $164.635 million on Thursday.
"The demand hit $10.850 million in cash and $24.550 million in money transfers outside the country, all covered by the bank at an exchange rate of 1,200 Iraqi dinars per dollar, unchanged for the second session in a row,” according to the central bank's daily bulletin which was received by Aswat al-Iraq- Voices of Iraq- (VOI).
The 13 banks that participated in the auction offered to sell 950,000 dollars, which the bank bought all at a rate of 1,198 dinars per dollar.
Speaking to VOI, Ali al-Yasseri, a trader, attributed the lower demand for the dollar to the small number of the banks that participated in today’s session and to the small size of the remittances.
Al-Yasseri expected a hike in the demand for the dollar at tomorrow’s auction with the possibility that the Central Bank will lower the dollar exchange rate against the dinar at a rate of one tick.
The Iraqi Central Bank runs a daily auction from Sunday to Thursday.Last Updated ( Monday, 12 May 2008 )