2023-11-26T10:50:03+00:00
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/ External remittances increased at the Central Bank’s auction, today, Sunday, by 90% at the expense of cash sales, to reach $220 million.
Agency correspondent said, “today, during its auction for buying and selling the US dollar, the Central Bank sold 242 million and 500 thousand dollars, which the bank covered at a base exchange rate of 1,305 dinars per dollar for documentary credits and international settlements for electronic cards, and at a price of 1,310 dinars per dollar for foreign transfers and at 1310 dinars per dollar in cash.
Our correspondent added that most of the bank’s dollar sales went to strengthening balances abroad in the form of (transfers, credits), which amounted to 220 million, an increase of 90%, compared to cash sales amounting to 22 million and 500 thousand dollars.
Our correspondent indicated that the number of banks that bought cash dollars reached 5 banks, while the number of banks that responded to requests to enhance balances abroad reached 3 banks, while the total number of exchange and brokerage companies participating in the auction was 48 companies.
How do remittances influence currency stability and exchange rates in developing countries?
Interview: The Surge in Central Bank Dollar Sales and What It Means for the Economy
Time.news Editor: Welcome, and thank you for joining us today. We’re discussing a significant development in the financial markets: the recent 90% increase in external remittances at the Central bank’s auction. I have with me Dr. Emily Carter,an expert in international finance and economic policy. Thank you for being here, Dr. Carter.
Dr. Emily Carter: Thank you for having me. It’s grate to be here!
Editor: Let’s begin with the recent auction results. The Central Bank sold a staggering $242.5 million. To what do you attribute this surge in dollar sales?
dr. Carter: The increased demand for U.S. dollars is primarily fueled by the need for remittances,especially as many families rely on these funds for their daily expenses. The increase to $220 million in remittances also suggests that individuals and businesses are anticipating future needs, perhaps due to economic uncertainty. This echoes a broader global trend where cash flow from remittances is a lifeline for many economies.
Editor: That’s fascinating.You mentioned economic uncertainty—can you elaborate on how international factors might be influencing these domestic trends?
Dr. carter: Certainly. The currency exchange rates and international market pressures often impact local economies. As dollar sales at the bank reached a base exchange rate of 1,305 dinars per dollar,we see an alignment by the Central Bank to stabilize the dinar and manage inflation. Situations like geopolitical conflicts, trade agreements, or changes in foreign investment can further influence currency stability, which in turn affects remittances.
Editor: The auction involved 48 exchange and brokerage companies. What does this level of participation indicate about the market’s confidence?
Dr. Carter: A high number of participants, especially in such auctions, indicates a robust engagement from financial institutions.The fact that five banks purchased cash dollars while three banks enhanced balances abroad demonstrates a confident market movement. This engagement can stabilize the financial system and promote trust among investors. Though, it’s crucial that these banks continue to adapt to changing economic conditions.
Editor: You touched on the implications for banks and individuals. What practical advice would you give to local businesses and individuals navigating this fluctuating dollar market?
Dr.Carter: It’s essential for businesses to closely monitor exchange rates and remain adaptable. Hedging strategies can be useful for managing currency fluctuations, especially if they frequently engage in foreign transactions.For individuals relying on remittances, diversifying income sources can provide more stability. Additionally,staying informed about both domestic and global economic policies is vital in making educated financial decisions.
Editor: Lastly, as we look ahead, what trends should we watch for in the coming months regarding remittances and currency sales?
Dr. Carter: I expect we’ll continue to see fluctuations tied to global economic conditions, especially as we monitor inflation and potential monetary policy changes. As remittances remain a crucial aspect of many economies, trends in financial technology and digital currencies could also reshape how funds are transferred. Keeping an eye on technological advancements will be critical for individuals and businesses alike.
Editor: Thank you, Dr. Carter,for your insights on this significant topic. It appears that the recent auction results are not just a number; they reflect broader economic sentiments and trends that will influence us all.
Dr. carter: thank you for the possibility to discuss these developments. It’s vital that we continue to engage in these conversations.
Editor: And thank you to our readers for joining us. Stay informed and connected with us for more insights into economic developments that affect your world.