2023-12-02T11:22:57+00:00
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/ The Central Bank of Iraq’s total sales of hard currency too the US dollar during the past week amounted to more then one billion dollars.
Agency correspondent stated that the Central Bank sold during the past week and for the five days in which the auction was opened, one billion and 117 million and 709 thousand and 150 dollars, at a daily rate of 223 million and 541 thousand and 830 dollars, lower than what it recorded last week, which amounted to one billion and 257 And one million 385 thousand and 826 dollars.
The highest dollar sales were on Sunday, when sales amounted to 242 million and 500 thousand dollars, while the lowest sales were on Thursday, when sales amounted to 214 million, 257 thousand and 520 dollars.
Our correspondent indicated that foreign remittance sales during the past week amounted to 1 billion 21 million 619 thousand and 150 dollars, an increase of 90% compared to cash sales that amounted to 106 million 530 thousand dollars.
Our correspondent explained that the sales went in the form of cash and transfers abroad to finance foreign trade,while the selling price of documentary credits and international settlements for electronic cards reached 1,305 dinars per dollar,while the selling price of transfers abroad and the cash selling price reached 1,310 dinars per dollar.
What are the potential impacts of increased foreign remittance sales on Iraq’s economy?
Interview with Dr. Amina Rashid, Economic Expert, on Iraq’s Foreign Currency Sales
Editor of Time.news: thank you for joining us today, dr. Rashid. The Central Bank of Iraq recently reported substantial foreign currency sales.Can you break down the significance of over one billion dollars in hard currency sales for our readers?
Dr. Amina Rashid: Certainly! The Central Bank of Iraq’s sale of over one billion dollars in hard currency indicates a robust foreign currency exchange activity. This kind of liquidity is essential for ensuring stability in the economy. It reflects the demand for US dollars, critical for international trade and foreign investments, which in turn can bolster Iraq’s economic prospects.
Editor: You mentioned international trade; how did the figures on foreign remittance sales compare to cash sales this week?
Dr. Rashid: The statistics are quiet revealing. This past week, foreign remittance sales totaled over one billion dollars, representing a staggering 90% increase compared to cash sales, which were only about 106 million dollars. This shift towards remittances over cash sales suggests businesses and individuals are increasingly using electronic transfers for thier transactions, which is a trend we might expect to continue as digital banking becomes more prevalent.
Editor: Engaging insight! With the selling price of documentary credits and international settlements at 1,305 dinars per dollar and cash sales at 1,310 dinars per dollar, what implications does this have for local businesses?
Dr.Rashid: The pricing indicates a variance in the cost of accessing dollars for different types of transactions. For local businesses, the ability to secure dollars at a lower rate through documentary credits can considerably enhance their competitiveness when engaging in international trade. however, the slight difference also shows that cash transactions come at a premium, perhaps discouraging cash sales in favor of remittances or bank transfers. this could lead businesses to seek more formal banking solutions for their foreign currency dealings, which could enhance transparency and reduce the risk of fluctuating exchange rates.
Editor: As an expert, what practical advice would you offer to businesses navigating these currency dynamics?
Dr. Rashid: businesses should prioritize establishing strong relationships with banks to utilize documentary credits and electronic transfer systems effectively. this will not only provide them with more favorable exchange rates but also access to a wide range of banking services that can facilitate international transactions. Moreover, monitoring the sale trends and remaining informed about Central Bank policies can help businesses make strategic decisions that capitalize on favorable currency exchange opportunities.
Editor: what does the future look like for iraq’s economy considering these foreign currency sales trends?
Dr. Rashid: If these trends continue, especially with an increase in remittances and effective regulation of currency exchange, we could see improved economic stability. However, external factors such as global economic conditions and local political and social dynamics will play a meaningful role as well. The key takeaway for readers is that understanding these trends can provide strategic insights for making informed decisions, whether for personal finance or business operations.
Editor: Thank you, Dr. Rashid, for your valuable insights on this timely issue. We appreciate your expertise in helping our readers understand the implications of Iraq’s foreign currency sales.