May 1, 2007

Demand for the dollar was up in the Iraqi Central Bank’s daily auction on Monday, reaching $68.210 million compared with $51.530 million on Sunday, while the dollar exchange rate went down.

In its daily statement the bank said it had covered all bids, which included $13.670 million in cash and $54.540 million in foreign transfers, at an exchange rate of 1,269 dinars per dollar, one tick lower than yesterday.

Seventeen banks that participated in Monday's auction offered to sell one million dollars. The bank bought them all at an exchange rate of 1,267 dinars per dollar.

Abdul-Razzaq al-Abaiji, an economist, told VOI "the decline in the exchange rate has encouraged traders to make higher offers in foreign transfers."

The Iraqi Central Bank runs a daily auction from Sunday to Thursday.