December 31, 2007

Demand for the dollar significantly increased in the Iraqi Central Bank's auction on Monday, registering at $119.535 million compared to $55.960 million on Sunday.

In its daily statement, the bank said it had covered all bids, including $22.635 million in cash and $96.900 in foreign transfers, at an exchange rate of 1,215 dinars per dollar, one tick lower than yesterday.

The 15 banks that participated in Monday's session offered to sell $1.200 million, which the bank bought at an exchange rate of 1,213 dinars per dollar.

In statements to the independent news agency Voices of Iraq (VOI), Ali al-Yasseri, a trader, attributed the dramatic increase in the demand for the dollar to the market's "thirst for dollars" and the previous fluctuation in the exchange rate.

"Dealings are most likely to remain high during the coming few weeks if the dinar maintains a stable exchange rate in local markets and central bank's auctions," al-Yasseri noted.

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

Source: Voices of Iraq