***Currency Auction*** 1/22/12, (US$) 200,000,000

[ndantona]

Thanks for reminding me of how old I've become. I still can remember watching Leave it to beaver in black & white.

Yeah, and the Iraqi Govt. and CBI act like Eddie Haskell -- they are sneaky -- never come out and say what their true intentions are.... :P

[zigmeister]

Yeah, and the Iraqi Govt. and CBI act like Eddie Haskell -- they are sneaky -- never come out and say what their true intentions are.... :P

"Hello Mrs. Cleaver that's a lovely dress you are wearing. How is Mr. Cleaver doing?"

[sportfisher]

See post #43. This one says they're selling dinar.

No it doesn't, you're not reading the data correctly

What are the chances of an auction ending up as a perfectly even $2000,000,000

I'm thinking they may have set limits on how many "dollars" to sell so they don't get down into their $60 bil in reserves, but stay on track with sqeezing out the liquidity of the IQD.

[DayTrader]

No it doesn't, you're not reading the data correctly

I'm thinking they may have set limits on how many "dollars" to sell so they don't get down into their $60 bil in reserves, but stay on track with sqeezing out the liquidity of the IQD.

I concur. So Says.................DayTrader

[Darin]

I think this topic is one that will always be debated until we find concrete proof oh their process.

First off, lets try and think logically with how the recent auctions have been going.

$200 million would be 234 billion IQD, so if they were consistently selling $200 million, they would be expanding their money supply by 1/4 of a trillion each day.

So, that can't be true, in my opinion.

Now, if they were selling foreign currencies, they same would be said for reducing the money supply.

The selling of foreign currency makes more sense.... But still, week in & week out of high auctions would put nearly nothing on the streets. So that can't technically be right either, right?

In my opinion? It regards to the total volume exchanged back & forth....

USD value of the IQD sold in exchange

USD value of the foreign currencies sold in exchange

The results, are the sum of the two...... Overall volume

I.e., the GOI buys up "X" amount of IQD using their revenue from oil sales and lets say that is $100 million

The CBI sells out "X" amount of foreign currencies to business owners to purchase imports, so that is roughly $100 million

Total volume, $200 million.

On a side note, the GOI takes the IQD and pays employees. But that is a non-CBI event as GOI simply pays out to its workers (an example on how IQD is spread into circulation)

[sportfisher]

The selling of foreign currency makes more sense.... But still, week in & week out of high auctions would put nearly nothing on the streets. So that can't technically be right either, right?

you must look at the smaller portion that is physical cash.

only $28,250,000 was cash out of $200,000,000.

http://www.cbi.iq/documents/CBI_FOREIGN_EXCHANGE_AUCTIONS.pdf

Edited January 23, 2012 by sportfisher

[Darin]

you must look at the smaller portion that is physical cash.

only $28,250,000 was cash out of $200,000,000.

http://www.cbi.iq/documents/CBI_FOREIGN_EXCHANGE_AUCTIONS.pdf

I think that is based upon a cash exchange...

Digital or Pyshical, I would assume my theory still holds true...

GOI could pay their employees through digital accounts (checks, direct deposit, etc)

But than again, they may only play a small role in daily transactions.

If the amount we saw is what was sold via foreign currencies, than so much IQD would have been removed they would have had the ability to R/V years ago.

The currency is being re-circulated into the system.

I have no doubt that they're likely trying to reduce the money supply, but I don't think they're doing it at a 1/4 of a trillion IQD on an average daily basis.

[sportfisher]

I think that is based upon a cash exchange...

Digital or Pyshical, I would assume my theory still holds true...

GOI could pay their employees through digital accounts (checks, direct deposit, etc)

But than again, they may only play a small role in daily transactions.

If the amount we saw is what was sold via foreign currencies, than so much IQD would have been removed they would have had the ability to R/V years ago.

The currency is being re-circulated into the system.

I have no doubt that they're likely trying to reduce the money supply, but I don't think they're doing it at a 1/4 of a trillion IQD on an average daily basis.

cash, yes cash....................."IQD on the streets"....................digital transactions in the auction don't remove cash IQD from the streets directly.

[truthful1]

I think that is based upon a cash exchange...

Digital or Pyshical, I would assume my theory still holds true...

GOI could pay their employees through digital accounts (checks, direct deposit, etc)

But than again, they may only play a small role in daily transactions.

If the amount we saw is what was sold via foreign currencies, than so much IQD would have been removed they would have had the ability to R/V years ago.

The currency is being re-circulated into the system.

I have no doubt that they're likely trying to reduce the money supply, but I don't think they're doing it at a 1/4 of a trillion IQD on an average daily basis.

Daily transactions are also to cover for imports because dinar is not accepted.