Mr. Ali Merza, Ph.D confirms real auction facts

[Dinar Buddy]

Mr. Ali Merza, Ph.D., has worked for the Iraqi Ministries of Oil and Planning and for the United Nations Department of Economic and Social Affairs in the Middle East and North Africa

Ali Merza is clear and articulates the Central Bank of Iraq auctions are actually "energy auction". All oil is sold, and transacted USD's.

Do not let any guru state the CBI auctions are to remove IQD or USD from the street.

Apparent rise in additional demand, during the ten months before October 2012, required increases in daily sales of foreign exchange, which could have been infeasible under auction rules. Furthermore, entrenched aversion to the working of freer exchange market, on the part of many politicians and public figures, might have deterred CBI, further, from providing proportional increase in supplies (sales). Therefore, the Bank was facing a dilemma that must have constrained its response.

This confirms oil consumption!

[sandfly]

THANKS

[Alex38]

THAT is interesting!

[yota691]

From your  Guy....DBG..CBI Foreign Exchange Auction
The other contributory factor relates to the CBI’s daily foreign exchange auction. Due to the fact that auction sales of US dollars are intended for the private sector through participating banks, it has been mistakenly perceived, somehow, that the CBI meets the demand of the private sector only. The continuation of UN Security Council Chapter VII Sanctions may have contributed to this view. According to the sanctions, oil revenues are not deposited directly in the CBI, but in the Development Fund of Iraq (DFI) at the Federal Reserve Bank of New York. Iraq’s Ministry of Finance (MOF) is the authority which makes decisions concerning oil revenues. Annually, it sells part of the revenues to the CBI in return for dinars. When it requires foreign exchange, however, the MOF usually uses its account at the DFI rather than requesting it from the CBI. It has appeared, therefore, as if the MOF provides rather than demands foreign exchange from the CBI. The perception, however, is at variance with the fact that government accounts in Iraqi dinars (in the CBI and other banks) are one of the main obligations against international reserves. (Other obligations include private sector accounts in dinars and issued currency.) Therefore, if the government (say, the MOF) requests dollars in return for its accounts in dinars the CBI needs to accept.

Read more: http://dinarvets.com/forums/index.php?/topic/158144-older-articleexamining-the-cbi-iraq-government-conflict-–-a-focus-on-forex/#ixzz2cE33NlV0

Edited August 17, 2013 by yota691

[puckster_guy]

Finally some real clarification on the subject. Ty both dinar buddy and yota

[Carvette]

More I read, less I understand where on earth are we at at this time with RV Thanks for the read