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CBI Currency Auction - Monday, 2 September 2013

Central Bank of Iraq

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#1 ronscarpa

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Posted 02 September 2013 - 08:39 AM

Currency Auctions
Announcement No. (2467)


The latest daily currency auction was held in the Central Bank of Iraq on Monday, the 2-Sep-2013 . The results were as follows:

DETAILS ------------------- & ----------------- NOTES

Number of banks ------------------------------ 22
Auction price selling dinar / US$ ------------ 1166
Auction price buying dinar / US$ ------------ -----
Amount sold at auction price (US$) --------- 275,976,000
Amount purchased at Auction price (US$) -- -----
Total offers for buying (US$) ----------------- 275,976,000
Total offers for selling (US$) ---------------- -----

Exchange rates
Dollar's exchange rates / in Baghdad markets
 

 


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#2 Dinar Buddy

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Posted 02 September 2013 - 09:00 AM

The Central Bank Auctikns are not currency being added or removed from the streets of Iraq. They are revenues received from the sales of oil. The CBI auctions are oil auctions. Do not be fooled by the gurus.

On how the reserves are formed, Asadi said, “Iraq’s annual budget is in Iraqi dinars, which the CBI owns. The state’s revenues are from oil exports, and they are mostly in US dollars. The government buys dinars from the bank, which results in profits for the bank. ... The total CBI profits from selling dinars to the state constitute the country’s federal reserve, whose growth is associated with state spending. State spending increases in proportion with its oil exports.”
Moreover, Asadi said, “With the expected increase in Iraq’s oil exports in the near future, the country’s reserves are likely to grow to a large extent in the coming years.”


Read more: http://www.al-monito...l#ixzz2dkPdj7Pv
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#3 yota691

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Posted 02 September 2013 - 09:06 AM

The Central Bank Auctikns are not currency being added or removed from the streets of Iraq. They are revenues received from the sales of oil. The CBI auctions are oil auctions. Do not be fooled by the gurus.

On how the reserves are formed, Asadi said, “Iraq’s annual budget is in Iraqi dinars, which the CBI owns. The state’s revenues are from oil exports, and they are mostly in US dollars. The government buys dinars from the bank, which results in profits for the bank. ... The total CBI profits from selling dinars to the state constitute the country’s federal reserve, whose growth is associated with state spending. State spending increases in proportion with its oil exports.”
Moreover, Asadi said, “With the expected increase in Iraq’s oil exports in the near future, the country’s reserves are likely to grow to a large extent in the coming years.”


Read more: http://www.al-monito...l#ixzz2dkPdj7Pv

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. Thanks RON


Read more: http://dinarvets.com.../#ixzz2dkRcYjv0


Edited by yota691, 02 September 2013 - 09:06 AM.

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#4 yota691

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Posted 02 September 2013 - 09:20 AM

High central bank sales of the dollar in the auction today

Monday, September 02 / September 2013 15:52

b_280_189_16777215_0___images_idoblog_up

[Baghdad - where]

 

Central Bank announced on Monday its sales rise of the dollar in the daily public auction to 275 million dollars, after that on Sunday reached 223 million and 143 thousand dollars.

 

According to a statement of the bank has received all of Iraq [where] a copy of it today that "the size of the amount sold by the bank at the auction of the dollar today reached [275] million and [976] thousand dollars at the exchange rate [1166] dinars to the dollar contribution [22] banks. "

 

He pointed out that "the quantity sold in cash amounted to [85] million and [850] thousand dollars, and the quantity sold remittances amounted to [190] million and [126] thousand dollars," adding that "the central bank receive a commission of [13] dinars per dollar, with discount [8] dinars for each dollar amounts purchased, ie, that the purchase price of the dollar = cash sales price of $ cash - 8]. "

 

The statement added that "the price of cash sales and transfers [1179] dinars to the dollar, including the commission of the Central Bank in the amount of 13 dinars per dollar, while the total cash purchase price of $ [1171] dinars to the dollar."

 

He explained that "the Iraqi Central Bank continues to buy and sell the dollar at [1166] dinars and receive the same commission mentioned above."

The statistics compiled by the agency all of Iraq [where] auction sale and purchase of foreign currency has reported that sales of the Iraqi Central Bank of the dollar traded during the last month [August] 4 billion and $ 563 million and $ 751. ended.


Edited by yota691, 02 September 2013 - 09:20 AM.

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#5 Dinar Buddy

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Posted 02 September 2013 - 09:29 AM

One more additional comment:

 

Abtan also talked about the currency auction, where the bank is putting up amounts of US dollars in cash for auction three times per week, to provide hard currency for traders and suppliers.


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#6 PrettyKitty

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Posted 02 September 2013 - 09:58 AM

The Central Bank Auctikns are not currency being added or removed from the streets of Iraq. They are revenues received from the sales of oil. The CBI auctions are oil auctions. Do not be fooled by the gurus.

On how the reserves are formed, Asadi said, “Iraq’s annual budget is in Iraqi dinars, which the CBI owns. The state’s revenues are from oil exports, and they are mostly in US dollars. The government buys dinars from the bank, which results in profits for the bank. ... The total CBI profits from selling dinars to the state constitute the country’s federal reserve, whose growth is associated with state spending. State spending increases in proportion with its oil exports.”
Moreover, Asadi said, “With the expected increase in Iraq’s oil exports in the near future, the country’s reserves are likely to grow to a large extent in the coming years.”


Read more: http://www.al-monito...l#ixzz2dkPdj7Pv

I believe This statement has been said a few times...Perhaps some members don't understand. Tks.


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#7 SocalDinar

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Posted 02 September 2013 - 10:17 AM

PrettyKitty

 

Thats a heck of a lot of oil being bought using Cash  85 Million of todays auction was CASH TRANS,

Thats 772,727 Barrels of oil paid for  with cash.


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#8 ronscarpa

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Posted 02 September 2013 - 11:40 AM

Thanks for your response to D.B. and the article on the Auction sales YOTA (+ each)...!  :tiphat: 


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#9 rockfl9

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Posted 02 September 2013 - 12:31 PM

 

PrettyKitty
 
Thats a heck of a lot of oil being bought using Cash  85 Million of todays auction was CASH TRANS,
Thats 772,727 Barrels of oil paid for  with cash.

ALL Iraqi oil exports are  paid for in dollars, electronically . The buyer's broker transfers the money to the MoF account at the NY FED. From there the MoF will transfer the dollars it needs to the Mof account at the CBI. The CBI will be ordered to auction a certain amount for dinar. Most of the dinar will come from importers who need the dollars to pay for inventory. The CASH transactions at with private individuals who supposedly need dollars for activities that cant be handled with dinar.
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#10 SocalDinar

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Posted 02 September 2013 - 03:40 PM

That's about it in a nutshell Rock. Its not all oil money as PrettyKitty spoke of. Sure is alot of cash changing hands though


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#11 sandfly

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Posted 02 September 2013 - 10:03 PM

YEP


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