Iraqi Dinar stable; Dollar demand high says Iraq Central Bank

Iraqi Dinar

The New Iraqi Dinar

Stop Fundamentalism, February 27 – Iraqi Dinar closed just below 1288 Dinars per Dollar today at Iraq’s Central Bank Auction.  This is unchanged from last Tuesday, says the ICB.

Since the introduction of new Iraqi Dinar, this currency has demonstrated a great potential in gaining value against Dollar.  Just last November and December Dinar was sold for prices above 1400 per Dollar.

Reports indicate a high volume of trade at Iraq’s Central Bank through its network of 14 participating Banks throughout Iraq.

Economist Abdul-Razzaq Sadeq al-Abaiji told the independent news agency “Voices of Iraq” (VOI) that, "The exchange rate was stable for more than a week now leading traders to offer selling dollars in today’s auction."

"The offers to sell dollar encouraged the Central Bank to cover all bids for dollar during Tuesday’s session.”  Abaiji added.

Azaman reported on Monday that the Central Bank had failed to cover bids made in its daily auction for dollar resulting in a decline in the demand ceiling to less than $34 million.

Some analysts anticipated last year that the Iraqi government plans to push Iraq’s Dinar value high to be fixed at 1000 per Dollar.  Iraq’s Central Bank later on denied such initiative.  Whether that is true or not the prediction seems to be coming to reality after all.