The purpose of the " auctions"

[rockfl9]

First it is NOT really an auction. It is the SALE of dollars at a controlled price. The CBI/MOF does this to manage INFLATION.  Importers can only BUY using dollars, but  but Iraqis are paid in dinar  so there must be a way to convert dinar to dollars or the economy would lock-up. The dollars belong to the MOF and the dinar purchased goes to them. NONE  is collected and destroyed.  The MOF uses it to pay salaries and bills. ALL 40+ TRILLION is still in circulation. 

[rockfl9]

The reason it is called an auction is that the MOF needs to control who gets to take dollars out of the country.. It must be someone that actually bring the necessary items back.  If not the rich would use it to simply line their escape to other countries.