UAE Daily News - Your No.1 source of United Arab Emirates news - Iraqi Central Bank bans selling dollars in daily auction

Dollar Sales halted in Iraq, Appreciation of Dinar sited as key goal of Iraqi Administration.

UAE Daily News - Your No.1 source of United Arab Emirates news - Iraqi Central Bank bans selling dollars in daily auction: "BAGHDAD -- The Iraqi Central Bank ceased suddenly on Wednesday selling dollars in its daily auction to both public and privately-owned banks.

The ban on selling dollars will be in effect until further notice, said a source at the Central Bank.

Prior to this decision, the central bank had registered low demand for dollars reaching only USD 74 million, compared to USD 121 million the bank sold at an earlier auction recently.

Money changers in Baghdad noted that the dollar exchange rate spiked from 1118 Iraqi dinars to the dollar to 1120 dinars and expected a further rise later, though many of them could not link that to the financial crisis that is gripping the world currently.

The exchange rate is sensitive to external factors that affect prices of commodities which in turn raise the rate of inflation, a situation that can only be corrected by strengthening the value of the Iraqi dinar and that is an aspiration that is very much desirable, said an official at the Central Bank The Central Bank runs five auction sessions a week where foreign currency is bought and sold."