2023-11-23T11:35:14+00:00
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/ External remittances increased at the Central Bank of Iraq auction, today, Thursday, by 88% at the expense of cash sales, to reach 207 million US dollars.
Agency correspondent stated that the Central Bank sold today during its auction for buying and selling the US dollar 230 million 890 thousand and 108 dollars, which the bank covered at a base exchange rate of 1305 dinars, per dollar for documentary credits and international settlements for electronic cards, and at a price of 1310 dinars per dollar for transfers.
Our correspondent added that most of the bank’s dollar sales went to strengthening balances abroad in the form of (remittances, credits), which amounted to 207 million 265 thousand and 608 dollars, an increase of 88%, compared to cash sales amounting to 23 million 624 thousand dollars.
Our correspondent indicated that the number of banks that purchased the cash dollar amounted to 9 banks, while the number of banks that responded to requests to enhance balances abroad reached 19 banks, while the total number of exchange and brokerage companies participating in the auction was 83 companies.
– What factors have contributed to the recent surge in external remittances in iraq?
Interview: An In-Depth Look at the Recent Surge in External Remittances in Iraq
Editor of Time.news (ET): Today we have the pleasure of speaking with Dr. Hana Al-Mansoori, a financial analyst specializing in middle Eastern economies. dr. Al-Mansoori, thank you for joining us. Can you start by explaining the importance of the recent 88% increase in external remittances reported by the Central Bank of Iraq?
Dr. Hana Al-Mansoori (H): Thank you for having me. The increase in external remittances is not just a number; it speaks volumes about the economic health of Iraq and its connections to global finance. An 88% rise indicates a robust demand for dollar remittances, which is crucial for the country’s financial stability. It also reflects the steeper focus on international settlements as Iraq integrates more into the global economy.
ET: Fascinating! The report mentions a total dollar sale of approximately 230 million dollars at this auction.How does this relate to cash sales and what can we infer from this division?
H: Absolutely. In the current context, cash sales accounted for only about 23 million dollars, which highlights a shift in the banking sector’s priorities. Banks are prioritizing strengthening their foreign balances, which is essential for maintaining liquidity and fulfilling international obligations. The fact that 19 banks focused on remittances versus just 9 for cash sales suggests a strategic shift towards more sustainable financial practices.
ET: What does the base exchange rate of 1305 dinars per dollar for documentary credits versus 1310 for transfers tell us about the state of the Iraqi currency?
H: This slight difference in rates indicates a controlled surroundings where the Central Bank is trying to stabilize the Iraqi dinar. By maintaining a lower rate for documentary credits,the bank encourages businesses to engage in trade rather than hoarding cash. this strategy helps in managing inflation and keeps the dinar relatively stable.
ET: With 83 exchange and brokerage companies participating in the auction, what does that say about the accessibility of these remittance channels for everyday Iraqis?
H: The inclusion of a wide range of exchange and brokerage firms is a positive indicator. It shows that the market is competitive and accessible, providing consumers with viable options for managing their finances and conducting international transactions. This can empower individuals by offering better rates and faster transactions.
ET: Considering these developments, what advice do you have for individuals who are looking to send or receive remittances in Iraq?
H: My advice would be to stay informed on the exchange rates through credible financial news sources. Individuals should also compare rates from multiple brokers to ensure they’re getting the best deal. Moreover, utilizing digital platforms for remittances can frequently enough result in quicker and more cost-effective transactions.
ET: Lastly, what are the broader implications of this increase in remittances for Iraq’s economy moving forward?
H: This positive trend can perhaps lead to increased investment in local businesses, as families receiving these remittances may spend more on goods and services. In the long term, sustained remittances could contribute to economic growth, helping to diversify the economy beyond oil dependency. Though, it is indeed crucial for policymakers to create an environment that leverages these remittances for developmental purposes.
ET: Thank you,Dr. Al-Mansoori, for your insight into this pressing topic. It’s clear that the increase in external remittances holds important promise for Iraq’s economic future.
H: Thank you for having me. It’s an critically important time for Iraq, and I look forward to seeing how these developments unfold.