2023-11-27T10:55:38+00:00
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/ External remittances increased by 92% at the Central Bank of Iraq auction, on Monday, at the expense of cash sales, reaching $209 million.
agency correspondent stated that the Central bank sold today, during its auction for buying and selling the US dollar, 225 million and 780 thousand dollars, which it 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 external transfers, and at a price of 1,310 dinars. For every dollar in cash.
Our correspondent added that most of the bank’s dollar sales went to strengthen balances abroad in the form of transfers and credits, which amounted to $209 million, an increase of 92% over cash sales of $16 million and 780 thousand.
He pointed out that the number of banks that purchased cash dollars reached 4 banks, while the number of banks that responded to requests to enhance balances abroad reached 3 banks, and the total number of exchange and brokerage companies participating in the auction was 52 companies.
How is teh shift from cash to digital transactions affecting local banks in Iraq?
Interview with Dr. Layla abdul Rahman, Currency Exchange Expert
Time.news Editor (TNE): Welcome, Dr. Abdul Rahman. Thank you for joining us today to discuss the recent developments in the currency auction by the Central Bank of Iraq.
Dr. Layla Abdul Rahman (LAR): Thank you for having me.It’s a pleasure to share insights on such an important topic.
TNE: Let’s dive into the news. We saw a remarkable 92% increase in external remittances, amounting to $209 million. What does this signify for Iraq’s economy?
LAR: This surge represents a significant shift in how currency is being utilized within Iraq. The increase in external remittances shows a growing confidence among Iraqi citizens and businesses in using the banking system for international transactions. It indicates a move away from cash sales, which can be less secure and less efficient.
TNE: The Central Bank sold $225 million in total during the auction, but cash sales only accounted for $16 million. what does this tell us about the preferences of banks and businesses?
LAR: This data illustrates a clear preference for digital transactions in the form of documentary credits and electronic card settlements.The higher volume of remittances likely reflects a growing need for businesses to engage in international trade without the risks associated with physical cash transactions. It emphasizes the importance of digital banking solutions in emerging markets.
TNE: With this transition to more electronic transactions, what can you tell us about the implications for local banks in Iraq?
LAR: Local banks play a crucial role in facilitating thes transactions. The fact that only four banks participated in cash dollar purchases versus three focusing on enhancing balances abroad suggests a need for banks to adapt to these new market demands. They must invest in technology and improve services to support their clients’ shift towards more secure transactions. This is essential for fostering trust in the financial system and encouraging further foreign investment.
TNE: The participation of 52 exchange and brokerage companies indicates a robust market. How do you see competition impacting the landscape of currency exchange in Iraq?
LAR: The involvement of numerous companies is a positive sign for competition, which frequently enough leads to better rates and services for consumers. As more players enter the market, we may witness innovations in service delivery and pricing strategies that will benefit businesses and individual consumers alike. however, it also means that regulatory oversight must be strengthened to ensure fair practices.
TNE: For our readers involved in international trading or looking to send remittances,what practical advice would you offer at this juncture?
LAR: My advice would be to familiarize themselves with the different options available for currency exchange and remittances.Understanding the exchange rates, transaction fees, and the security measures offered by various banks and exchanges will empower them to make informed choices. Additionally, they should take advantage of technology – using online banking and mobile apps can streamline the process considerably.
TNE: Lastly, what future trends should we be looking out for in Iraq’s currency exchange industry?
LAR: We can expect further digitization in the financial services sector, especially as businesses recognize the benefits of electronic transactions. Additionally, as Iraq continues to stabilize its economy, we may see increased foreign direct investment and a deeper integration with global financial markets.It’s crucial for both consumers and businesses to stay informed about these trends to leverage opportunities that arise.
TNE: Thank you, Dr. Abdul Rahman, for sharing your expertise with us. Your insights are invaluable for understanding the evolving landscape of currency exchange in Iraq.
LAR: Thank you for having me. It’s essential to keep the dialog open about these developments, and I hope to see continued growth and security in our financial systems.