TQueezy

1187 - 21 = 1166. The CBI is still operating at 1166, they just increased the commission up to 21 dinars. We should not be following what the rates are that they list on the CBI website because according to this new information that means they are not reporting that rate accurately on the site.

Uuuuhhh… What?

No need to apologize, I just wanted to make sure Zebari wasn't more stupid than I originally thought and was repeating his statements after an employee in his own ministry department corrected him today in a statement.

250,000 barrels of crude oil per day is already an enormous amount! Think about it: average workday from 6AM to 5PM is 11 hours, so that is 22,727 per hour worked, 378.78 barrels per second!!! I don't know about you all, but that's insane to me… On top of all of that, OPEC wants to cut production to boost demand and increase oil prices. Is it really smart to invest billions to produce more at a time like that? Who knows how long the forced reduction will last.

Is this publication just late to the race? I thought his interview and this story were originally published yesterday.

Wow, so one of his underlings in his own department is contradicting him? Zebari, what a complete failure you are… Why didn't PM Abadi axe your position too? Or at least just get you out of that chair. You've gotta go see a professional or something. Or just stop talking out your arse or making shith up. Can Iraq get back to getting back on track please? There's always so many spoiled items in their fridge. They need to do some deep cleaning. They were starting to liberate their land, pass the budget in record time, come to agreements all around, even between cultural and political groups. Get it together Iraq!

The CBI sells physical US dollar notes to representatives from major in-country banks and money exchangers, not individual citizens. if you look at the auction details, only a small portion of each total days sales of dollars are in cash, physical paper bank notes. The rest are electronic transactions and remittances, which are payments directly for goods and services usually out of country (think CBI is the liaison for the banks to pay companies not based in Iraq for imported goods or services. So with so little cash dollars per day being distributed to banks who then distribute to citizens through tellers in bank buildings or ATMs, the rest of daily transactions are done with dinars, which employees get paid in (even government employees, who account for 20% of the population of working adults). CBI makes a commission on both cash sales and electronic transactions exchanging dinar for dollars. Major reason they don't stop the auctions. Also, this helps regulate currency in circulation, both US dollars and Iraqi dinar, and possibly helps them remove some notes from circulation as their reserves can sustain (usually damaged notes or if major decreases in CBI foreign currency reserves then a sligh adjustment of circulating dinar notes based on money supply). It's not that hard to see why they don't stop based on commission alone, dealing with hundreds of millions of dollars per day. For Iraq to have a higher valued dinar compared to the dollar, they have to do more than expect the world to believe oil will be consistently strong for decades longer (questionable). And they have to stop arguing over budget money in government and regional conflicts and get rid of terrorist threats, just to mention a very few things on a long list…

So, since your post is in 2016, do you mean you're looking to 2017 for the revalue? and… Thanks

Exactly!

""He explained that" The other option is how to raise the Iraqi dinar exchange rate," Oh, really? Really, Zebari? Please elaborate.

So the CBI's website shows selling price of dinar at 1182 per dollar. If 14 of that is CBI commission now going the GOI to bolster the budget, that leaves 2 dinar per that goes to the CBI coffers? Or are they on 1192 like some sources say leaving 12 dinars still going to CBI as well as 14 going to GOI?

Lots of material here, including the 2015 Article IV consultation. http://www.imf.org/external/country/irq/

In case anyone is curious if I did any research: This is the document so many "gurus" want to quote. Nothing in there about a 2% spread. https://www.imf.org/external/pubs/ft/aa/#art8 Also this: http://www.imf.org/external/pubs/ft/issues/issues38/ei38.pdf From the people over at Dinar Updates dot com. Don't just absorb and regurgitate things people say without researching, please.

Please oh please someone copy paste or link to where it says they have to have a 2% spread in their currency's market rate and official bank rates when they're on a peg/artificial program rate. Iraq doesn't have an internationally recognized and traded currency, and even then there is nothing in the IMF's general membership policies that states a sovereign nation has to maintain a 2% spread or "compliance" with their currency. https://www.imf.org/external/pubs/ft/aa/#art8

Show me where in Article VIII of the IMF's general membership rules and guidelines that it says a country has to have its currency be within a 2% margin for the official exchange rate and the market rate. Please. They just make this stuff up, people.

Not to be negative on this, but if this turns out true, that money is going to be tied up behind legal proceedings for years to come. I dare say we wouldn't see the money returned to the CBI for at least 5 years pending trials and multi-tiered investigations.

So… what the Kurds are saying is… they're not Iraqis, are not part of Iraq, have claimed the lands through the Peshmerga, and don't want much to do with Iraq other than getting their share of the money form oil sales they give to the government.

Don't worry guys, The lower dee-nomz are going to be out by the 1st of the year and the big boys in charge of this whole revaluation are working on the calculations and pricing of the rate behind closed doors. They'll release it to everyone when they're ready and we should also see $habibi or someone similar come up to announce it to the world that Iraq is in da bidniss.

I noticed there is no listed auction for Dec. 23, 2015. Not trying to read into it too much, but I don't know of any holidays or any CBI closures and it's not their "sunday" or normal day of the week where they aren't open and doing auctions. Anyone think something is up? CBI page still just shows the results for the 22nd's auction.

They just can't keep their oil-covered hands off our fake, green sin paper.

Of course they can activate tariffs using the exchange rate of 1182 dinar per US dollar. What do you think other countries do with low exchange rates? They use what they have at that moment. Not everyone needs a ridiculously high rate against the UD dollar to use tariffs for import revenue.

BV could also stand for Belvedere, a type of vodka.

Saleh said it's all good guys, no need to worry. RV in June, 2016!

And in today's economic outlook on Iraq, our best indicator: the 2015 Miss Iraq beauty contest!

I think they're saying that $5 from the sale of every single barrel of oil originating from that province specifically will go towards building up their local economy in the province, Eg: let's say Basra sells 50,000 barrels per day at an average price of $45 per barrel, then $5 per barrel goes towards provincial development for a total of $2.25 million per day and $250,000 per day going towards the province directly. Thats how I read this article.