Tuesday, June 17, 2008

Dramatic increase in the demand for the dollar

Baghdad, 12 May 2008

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 )

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