Iraqi Central Bank Will Not Stop Auction Sales of Foreign Currency: CBI

On Monday, the Central Bank of Iraq issued a statement and defended its daily auction sales of foreign currency. A number of financial experts advised to stop foreign currency auction sales at CBI and criticized it as a door of corruption and loss of state funds. Iraqi Central Bank stressed that the foreign currency sales auction means to stabilize the Iraqi dinar exchange rate against the U.S dollar in Iraqi domestic markets. CBI further added in the statement that the process of the auction sales of currency is a way to make certain stability of Iraqi dinar exchange rate in order to meet the requirements of Iraqi economy by providing foreign currency covering Iraqi imports of goods and services for Iraqi private sector.

Iraqi Central Bank Will Not Stop Auction Sales of Foreign Currency: CBICBI added that it also covers the specific need of Iraqi citizens such as medical treatment, travel and study abroad for Iraqi national students, in spite of the absence of allocation in the Iraqi federal budget since 2003. The statement further added that Iraqi Central Bank is working very hard to develop its procedures and motivating Iraqi banks to implement mechanism by opening letters of credit for import purposes rather than remittances methods. The Iraqi Central Bank pointed out that CBI has adopted a fundamental criterion for the implementation of the U.S dollar sale operation to Iraqi banks including the commitment to the specific rules in order to fight against currency smuggling, laundering and financing terrorist organizations. The Iraqi governmental banks are providing a great role in buying and selling of the U.S dollar.

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