The Central Bank is approaching the end of November with a 50% drop in its sales…and there are 3 reasons behind the drop
The Central Bank is approaching the end of November with a 50% drop in its sales…and there are 3 reasons behind the drop
2022-11-26
Yes Iraq: Baghdad
Numerical data showed the extent of the collapse in currency sales to the Central Bank of Iraq during the month of November, as the total sales so far amounted to $2.353 billion as the month approaches, after monthly sales touched or exceeded $5 billion.
The data showed that November recorded sales of foreign remittances amounting to 1.914 billion dollars, down from foreign remittances for the month of October by 55%, when they were 4.171 billion dollars in October.
As for cash sales in November, they amounted to 439 million dollars, down by 43% compared to cash sales in October, when they were 759 million dollars.
This total decline in currency sales, which is approximately 50%, came as of the current month of November, while the reasons that may explain this decline varied.
The total sales of the first four days of November amounted to about 536 million dollars, which amounts were made during two or 3 days in the past months, and “Yess Iraq” had previously submitted a report through which it expected that the Central Bank’s sales in November would decrease as a general rate by 40%. .
Experts’ expectations came that the decrease is related to the lack of demand for the dollar by citizens due to fears of lowering the price of the dollar by the government, but the information indicates that this decrease is linked to the exclusion of a number of banks that were already alone acquiring 40% of the central bank’s sales, such as Ali’s banks. Ghulam, which are the banks of Ansari, Middle East and Al-Qabid, as well as the exclusion of Bank of Asia, all of which were excluded by the Central Bank from dealing in dollars, following directives and warnings from the US Treasury against these banks accused of smuggling currency.
For its part, the Central Bank of Iraq justified, a few days ago, the reasons for the decrease in the volume of sales of the foreign currency sale window recently, by saying that it is due to the bank’s shift to establishing a new electronic platform for selling dollars and foreign remittances, considering that some banks do not have sufficient willingness to enter within the automation that started their work. demo.
An authorized source in the bank told the official agency, “The Central Bank of Iraq is working to automate banking business according to the best banking standards, including the establishment of an electronic platform that organizes the external transfer process through the foreign currency sale window, similar to the electronic platform that organized the work of letters of guarantee.”
He added, “Due to the lack of sufficient readiness of the local banks with the start of the trial application of the platform, the implementation of part of the foreign transfers was postponed, which resulted in a decrease in the volume of sales of the foreign currency sale window.”
The Central Bank’s sales began to decline since the beginning of November, by 30%, after it had exceeded $200 million, to drop to between $120-150 million only.
Sources indicate that some banks were excluded from the currency sale window due to sanctions and warnings from the US treasury, which indicates that the banks that were withdrawing currency by “imaginary import” may have been banned and moved away from the currency sale auction.
yesiraq.com
