2023-11-29T11:30:51+00:00
A-
A
A+
/ External remittances at the Central Bank of Iraq auction increased by 92% on Wednesday,at the expense of cash sales,to reach $200 million.
Agency correspondent stated that the Central Bank sold today, during its auction for buying and selling the US dollar, 216 million, 809 thousand and 321 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 a price 1310 dinars per 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 amounting to 200 million and 349 thousand and 321 dollars,an increase of 92% over cash sales of 16 million and 460 thousand dollars.
He pointed out that the number of banks that purchased cash dollars reached 8 banks, while the number of banks that responded to requests to enhance balances abroad reached 22 banks, and the total number of exchange and brokerage companies participating in the auction was 118 companies.
How do remittances influence the economic stability and growth prospects of Iraq?
Title: Understanding the Surge in Iraq’s Central Bank Remittances: An Interview with Dr. Sarah Al-Hakim
Editor (Time.news): Thank you for joining us today, Dr. Al-Hakim. the central Bank of Iraq recently reported a staggering 92% increase in external remittances compared to cash sales. What factors do you think have contributed to this significant rise?
Dr. Sarah Al-Hakim: Thank you for having me. The increase in external remittances can largely be attributed to a shift in how businesses and individuals are managing their finances. With a stable base exchange rate set at 1,305 dinars per dollar for credits and settlements, many are taking advantage of this stability to increase their holdings overseas. The appeal of using remittances over cash transactions has grown, especially for international trade.
Editor: That makes sense. The numbers indicate that $200 million was directed toward enhancing balances abroad. How do these transactions impact the overall economic landscape in Iraq?
Dr. Al-Hakim: Higher remittances to strengthen foreign balances can boost liquidity and provide iraqi businesses with greater access to foreign markets. This not only enhances economic stability but also increases the contry’s attractiveness to foreign investors. A stable economic environment encourages international trade and could help improve Iraq’s overall economic indicators.
Editor: Speaking of international trade, could you explain how the dynamics between cash sales and remittances reflect the confidence of banks and investors in the Iraqi economy?
Dr. Al-Hakim: Certainly.The participation of 22 banks in foreign transfers versus just 8 in cash sales highlights a growing trust in remittance transactions. This shift suggests that banks are increasingly seeing the value in fostering international relations and managing foreign assets rather than merely dealing with cash. Such dynamics are crucial in drawing in foreign investment and facilitating economic growth, especially for sectors dependent on foreign currency.
Editor: With 118 exchange and brokerage companies participating in this auction, what implications does this have for the currency market in Iraq?
dr. Al-Hakim: The high level of participation indicates a healthy and competitive currency exchange market. It reflects a rising interest from various players, which can lead to better exchange rates and more favorable conditions for consumers and businesses alike.Increased competition can also enhance the transparency of transactions, as companies strive to offer better services to attract clients.
Editor: With these developments in mind, what practical advice would you give to individuals and businesses looking to navigate this changing landscape?
dr. Al-Hakim: I would recommend staying informed about the exchange rates offered by different banks and brokerage companies. For businesses, establishing solid relationships with banks that are active in remittances can yield better financial solutions. Additionally, diversifying currency holdings and considering remittances as a strategic tool for international dealings can be beneficial.
Editor: Thank you,Dr. Al-Hakim,for your valuable insights into the Central Bank of Iraq’s recent auction and the implications of increasing remittances. Your expertise helps illuminate the evolving financial landscape in Iraq.
Dr. Sarah Al-Hakim: Thank you for having me! It’s critically important for everyone to stay engaged with economic trends,as they directly influence our personal and business finances.