Voices of Iraq Article: Dollar demand hits new low in 2006

Voices of Iraq: Iraq-Currency
Posted by: saleem on Tuesday, November 28, 2006 - 12:52 PM


Dollar demand hits new low in 2006


Baghdad, Nov 28, (VOI) – Buying demand for U.S. dollars hit a new low for 2006 on Tuesday and the dollar rate was down two dinars amid expectations of lower demand for the U.S. currency as the Iraqi central bank moves towards raising the dinar rate.


The Cenbank said in its daily statement the dollar demand reached $0.850 million compared to $20.580 million on Monday.


The central bank covered all bids received from local banks which were $0.850 million in cash.


The exchange rate was at 1,437 dinars per dollar, two dinars down from the previous session.


Only six banks participated in Tuesday’s session, the lowest number in 2006, and none of them offered to sell dollars.


The Iraqi central bank runs a daily auction on Sunday through Thursday.