Does anyone have solid evidence CBI buying up IQD in auctions?

[hame55]

I am getting more pessimistic now on this investment. If there are trillions of dinar out there, and they aren't reducing the money supply through the auctions, we may be in trouble. It would be easy for them to RD.

The argument that they would have RD'd already if that were their intent may not hold water. Perhaps they just haven't gotten their ducks lined up in a row - i.e. the GOI, Chap 7, etc.

Sooooooo.....does anyone have EVIDENCE the CBI is buying up dinar with US dollars with the (supposed) intent of decreasing the money supply and paving the way to an RV of much greater proportions?

Edited January 26, 2012 by hame55

[keepmwlknfny]

Been waiting for sometime for this kind of evidence.....

If anyone can enlighten us I would be more then grateful......

[fnbplanet]

Unless one is personally present at an auction, we have to go on what they're telling us, and that is that they are selling USD, at about 200million per day. If they are selling USD, what could any bank be possibly be buying it with, in that volume, other than IQD?

They have also told us that because of the tanking currencies in Iran and Syria, some of it (USD) is going across their borders as their peoples and companies seek it as a safe haven. That is why, IMO, the auctions have been limited to around $200 million daily, to prevent a drain on Iraq's foreign reserves.

Hope that helps!

[jupitergirl]

I am getting more pessimistic now on this investment. If there are trillions of dinar out there, and they aren't reducing the money supply through the auctions, we may be in trouble. It would be easy for them to RD.

The argument that they would have RD'd already if that were their intent may not hold water. Perhaps they just haven't gotten their ducks lined up in a row - i.e. the GOI, Chap 7, etc.

Sooooooo.....does anyone have EVIDENCE the CBI is buying up dinar with US dollars with the (supposed) intent of decreasing the money supply and paving the way to an RV of much greater proportions?

I don't think the cbi would let us know straight up if they were doing that. However there were many articles over a year ago where the cbi stated they were 50%, as high as 70% done deleting the zero's. I don't have a link but they are in the forums. If anyone has these articles I would love to see them posted again!

[Bat of Darkness]

I sympathize with your apathy...but the auction selling USDollars for IQDinar is an old established fact. They used to hold them under the staircase in the old building, and the USA provided the security. I remember seeing those pictures. At one time, I guess those auctions represented the ONLY demand for the Dinar. Wish my bank would sell me dollars for a discount...

[jupitergirl]

I don't think the cbi would let us know straight up if they were doing that. However there were many articles over a year ago where the cbi stated they were 50%, as high as 70% done deleting the zero's. I don't have a link but they are in the forums. If anyone has these articles I would love to see them posted again!

Central Bank: completion of 50% of the project to delete the zeros from currency

BAGHDAD - Abdul Ghani Al-Saidi: the central bank said that the project to delete the zeros of strategic projects that were to start putting steps in place since 2007, was part of reconstruction of the currency management system and facilitate the national payments system, with the Ministry of Finance denied the intention to delete the zeros of the national currency during the period adding that the future of the Iraqi economy does not suffer from inflation, there is no need for its implementation.

Adviser, said the CBI appearance of Mohammed Saleh, said that the project to delete the zeroes will start the strategy of the new Iraqi economy.

Adding that the bank has completed 50% of the preparations of the project to delete the zeros from the currency.

Saleh pointed out that the strategy is based on the principle of gradual substitution of the Iraqi currency with another is lower than in the nominal value, indicating that the positives of this strategy is that it will be less expensive and easier to trade.

He added that the project to delete the zeros came after the study and a broad debate with the Economic Committee of the Council of Ministers and the Commission on the currency in the CBI and the study project and its results have been approved in principle after that set the basic framework for substantive progress in the process when start-up, and the process will be approved if will not affect the obligations between the state and the private sector such as construction and supply contracts and others, and the addition of contractors and will not be affected based on what one organized by the Central Bank through the instructions and mechanisms established by of the economic process in Iraq.

He noted that the central bank is committed to the stated strategy and its projects with special reference to the deletion of zeros from the currency, which comes within the framework of promoting economic Balrafhep Iraq, saying that despite the technical and logistical preparations for the deletion of zeros, the theme of this project in the near future to Ainasrv to assess the economic aspects only, but will relate aspects Assembly and related security, in particular, being a multi-dimensional issue extensive field.

The economists agreed that the draft long-term deletion of zeros, which purports to implement the central bank needs to economic stability in Iraq is not available currently.

He said economic expert, Dr. Mohsen Ali Hassan said that the process of deleting the zeroes and Monetary Reform will start operation in all countries of the world when inflation takes off, and accelerated trading Bmdiat the top and keep the money becomes a loss for the people driven to replace the cash assets of the real assets, leading to sharp rises in prices more than the increase in the amount of money, unwanted and therefore must be adapted daily wages and may replace foreign currencies.

With the exception of Muhammad Sharif, an economist the process of deleting the zeroes of the Iraqi currency as the new cash will be given the power of the currency in circulation in the Iraqi market, which means that it will add a huge amount of goods and services that the government and the central bank obliged to pay to traders in those currencies.

The Sheriff indicates that there is an important factor must be viewed with extreme precision, which is that the process of deleting the zeroes should be carried out quietly because the accelerated implementation of this process will have negative effects and that the first of the transfer of currency from circulation in the coffers of the central bank, a situation greatly harm the Iraqi economy as well as will be confusion in the case of Iraq's business dealings, which are at the beginning of the transition to a market economy, indicating that this Aibadna on the fundamental issue that the process of deleting the zeroes will more or less if inflation were hiding in Iraq, considering that the money supply will be less.

The application of the process of deleting the zeroes now will resort to a burden on the balance of payments, as well as the burden on the trade balance is therefore necessary to read the pros and cons of the application to delete the zeroes starters because lack of scrutiny on this issue will have a large and heavy consequences on the Iraqi economy and the issue of balance of payments, which is a balance completely deranged economic work.

Tag CloudIraqi DinarPaymentOnline TradingIraqi dinar speculationContracting

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The economic researcher Abdul Karim Hilfi believes that the central bank's decision to delete the three zeroes on the long-term resolution is not new in the economic arena, several countries have preceded us to that, most notably the Germany.

He added that the economic situation of the Iraqi Ataatovr the objective conditions for deletion because Iraq is suffering from structural economic problems and inflation rates as well as a strong high unemployment rates, how will the deletion of zeros from the dinar, which is basically non-existent.

And that Iraq is not able to move forward with this decision either in the short term or long-alike, noting that it is possible to delete the zeroes when production is strong and the Department of UNAMID as well as the absence of structural imbalances or inflation and unemployment rates are less than 10%, indicating The decision can not be implemented only after a long time, even if carried out within a year or two it will be a negative impact because the economy is in recession now.

http://translate.googleusercontent.c...RmsuWfv8grVm0w

[keepmwlknfny]

Adding that the bank has completed 50% of the preparations of the project to delete the zeros from the currency.

Its saying they were 50% done with PREPARING the project.....not that the plan/project IS 50% completed.....

[jupitergirl]

Adding that the bank has completed 50% of the preparations of the project to delete the zeros from the currency.

Its saying they were 50% done with PREPARING the project.....not that the plan/project IS 50% completed.....

Agreed.....This one also says the same....but also says ..." will lead to revaluation".....no promises but staying hopeful! Delete the zeros from the currency will raise the value and limits the inflation

December 5 2010

BAGHDAD (Agencies) – delete the zeros of the Iraqi currency of the important issues of concern to economists at the present time and this made the call Central Bank Governor Sinan al-Shabibi to come to the House of Representatives at its yesterday to discuss this subject, has discussed the members of Parliament with the conservative set of economic aspects of interest public affairs, in addition to (deletion of zeros) of the Iraqi currency in and out, with a nominal value of cash and keep Bakimiteha purchasing.

Adviser to the CBI the appearance of Mohammed Salih said: The current year will witness the launch the process of removing zeros, stressing that the bank has completed 50 per cent; of the preparations that are working on since 2005.

And added to the Agency for News: The strategy is based on the principle of gradual substitution of the Iraqi currency with another, less three zeros, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade. He continued that the deletion of zeros from the Iraqi currency will depend on the long-term monetary policy.

And between valid: that this step requires legislation and laws before embarking upon as part of currency management strategy in Iraq.

Appearance and confirmed the need to delete the zeros come from the Iraqi monetary bloc, which has become too large a product of inflationary phase lasted about 30 years rose from 25 billion to 21 trillion.

He noted the appearance of: to be the largest category of cash is 25 thousand dinars, equivalent to $ 23, while the largest category during the year 1979 and the period preceding the war, the Iran-Iraq 25 dinars equivalent to $ 75 at the time, but today, the biggest Iraqi faction of 25 thousand dinars is not equivalent to only $ 23 with the smallest currency we have is 250 dinars, and will allow the deletion reducing the size of the cluster of cash currency, ie, that the paper of a thousand dinars turn to one dinar, and this means reducing the 21 trillion dinars to 15 billion dollars with coins, metal, and small groups.

And Saleh said: “The strategy that purports to Central taken” in line with the Constitution and the economic life of good and facilitate intra-group transactions, “pointing out that” part of the margin of the inflation rate of between 1-3 per cent; is the responsibility of the large number of cash representing the cost of transactions in the case of the deletion will be reduced that cost. ”

And about the continuing high prices despite the official figures which show a decrease in the rate of inflation Saleh pointed out that “monetary policy is not concerned to re-price to the first box, but its goal to reduce rates of increase in prices, which were approximately 32 per cent; in 2007, and today dropped those increases to arranged to one decimal place around 7 per cent; only, “saying the number” a victory for Iraq’s economic program, where there are no important central Iraqi stability only in the general price level and stability of the financial system. ” He pointed out that the bank will issue treasury transfers of $ 3 trillion dinars during the next few days, to cover the contracts of electricity through the legal cash reserve which is maintained for the benefit of banks.

For his part, said economic expert, Dr. Hilal Al-Tahan, that the application of such a strategy will not cause economic turmoil, or damaged in the local market at the present time.

Stressed the economic and academic: to the process of deleting three zeros from the Iraqi currency will lead to a revaluation, noting the need to follow the policies of quiet to convince citizens and getting used to it for a period not exceeding two years.

The economic analyst said Reza Ragheb Blibl The timing of the launch of this strategy is not appropriate now, and the country’s economy must be in a position of strength before the application of those changes.

http://www.akhbaar.org/

[EternalReality]

The evidence is also in the fact, that we know for sure they are selling OFF US dollars. They are selling off the US dollars, and purchasing the dinars back.

I believe there is some sort of saying the one that controls the money, controls the power? Something along those lines.

So if Iraq is able to purchase back even just a majority of the currency, they can control the value of it, backed by their substantial wealth in the ground... which is greater than pretty much any asset, anywhere in the world.

The CBI selling legit amounts of US dollars for the Iraq dinar, may seem crazy to us.. the end consumer, but to the corporations and banks this is great because they transfer money back and forth every day and have 100's millions to 100's of billions of dollars collectively.... so it is nothing to them to trade money on any given day to increase their profits... especially if they believe they can make marginal profits from the US dollars, selling them in Iran, etc.

And of course, they can always buy massive quantities of dinar at the flip of a switch.

[gatoraces]

yes, an RD is very likely. it is a gamble. no big deal.

[The Machine]

this topic has been hammered to death at this stage ......... every week same auction question comes up ...... there selling dollars and buying dinar back from the banks.

[hame55]

this topic has been hammered to death at this stage ......... every week same auction question comes up ...... there selling dollars and buying dinar back from the banks.

OK - thanks guys and gals. Yes, I know this topic has been hammered, but not to death. We go on what they tell us, that they are selling USD. But what I was looking for was any solid evidence that is actually what they are doing, such as articles describing it in other contexts other than RV/RD, where we might get a clue that is what they are actually doing.

If they are selling USD and buying dinar, then it is only a matter of time for an RV. That is why this question is so critical and SOLID evidence the auctions are reducing the money supply is so critical.....But, alas there seems to be no solid evidence available to anyone here in the US, other than what Iraq publishes, and they have an incentive to muddy the waters...

[easyrider]

you will never know bottom line!! they will NOT leak that type of info out there Currency speculation is a very serious matter to countries.

[Blu Collar Guru]

this topic has been hammered to death at this stage ......... every week same auction question comes up ...... there selling dollars and buying dinar back from the banks.

PLUS ONE TO U !

you will never know bottom line!! they will NOT leak that type of info out there Currency speculation is a very serious matter to countries.

PLUS ONE TO U !

[HopefulTxn]

this topic has been hammered to death at this stage ......... every week same auction question comes up ...... there selling dollars and buying dinar back from the banks.

Unfortunately the text from Al-Aswat describing the actions happening in the daily auctions sound like they are simply acting like a foreign exchange.

The Central Bank of Iraq holds 5 auction sessions every week, beginning on Sunday and ending on Thursday for the sale and purchase of foreign currencies, charging an interest of 13 dinars per dollar for its cash sales, along with 13 dinars per dollar for its foreign transfers.

LINK

It would be great if they are buying back dinar, but it just is not what is stated is happening in any of the descriptions of the daily auctions.

It does seem to be a nice money maker for the CBI, since a $200 million dollar auction would net them about $2.2 million dollars at the current exchange rate (200M x 13 / 1166).

[fnbplanet]

Unfortunately the text from Al-Aswat describing the actions happening in the daily auctions sound like they are simply acting like a foreign exchange.

The Central Bank of Iraq holds 5 auction sessions every week, beginning on Sunday and ending on Thursday for the sale and purchase of foreign currencies, charging an interest of 13 dinars per dollar for its cash sales, along with 13 dinars per dollar for its foreign transfers.

LINK

It would be great if they are buying back dinar, but it just is not what is stated is happening in any of the descriptions of the daily auctions.

It does seem to be a nice money maker for the CBI, since a $200 million dollar auction would net them about $2.2 million dollars at the current exchange rate (200M x 13 / 1166).

Times five days a week.....

[jupitergirl]

For some who have been around a while it was not long ago that the cbi had about 30 billion in there coffers.....now they have 60 billion. The total value of the 30 trillion dinars was at 26 billion usd. Take 10 - 20 billion of that and buy up most of the float ( if they haven't been doing that ) and rv!!!! Still have 40 - 50 billion left......What do you think?

[truthful1]

Someone explain why iraq wants to rv a 1000 times and pay out trillions of dollars worth of resources, when they dont have to??? Why is it??? They can print new currency,they say for 150 million, give it a value of 3 dollars/dinar, and not pay out trillions, allowing them to make trillions off the resources they keep. they the wealthiest country on the planet with their resources, why do they need to pay out to speculators? Countries will be upset??? Like they care. iraq has the wealth and the oil and they will always have someone buying it. even if they rd,companies will be begging for contracts to get a piece of the action. If iraqis are giving up all there dinar, they wont benefit from a rv. so we are to believe, the cbis plan is to take care of speculators and the US, because there so thankful we helped them out. sorry, not buying it.

[Joker017]

Someone explain why iraq wants to rv a 1000 times and pay out trillions of dollars worth of resources, when they dont have to??? Why is it??? They can print new currency,they say for 150 million, give it a value of 3 dollars/dinar, and not pay out trillions, allowing them to make trillions off the resources they keep. they the wealthiest country on the planet with their resources, why do they need to pay out to speculators? Countries will be upset??? Like they care. iraq has the wealth and the oil and they will always have someone buying it. even if they rd,companies will be begging for contracts to get a piece of the action. If iraqis are giving up all there dinar, they wont benefit from a rv. so we are to believe, the cbis plan is to take care of speculators and the US, because there so thankful we helped them out. sorry, not buying it.

There's an old saying, Maybe you've heard it before: The Rich get Richer and the Poor get poorer! Wouldn't surprise me if this is about taking all the dinars from the common Iraqi Fellow and all the Dinars they can get from the other neighboring countries through there daily auctions and then they RV! That way the same thing happens over there that happens here. The Rich get Richer and the Poor get Poorer! Genious.....

[fnbplanet]

Someone explain why iraq wants to rv a 1000 times and pay out trillions of dollars worth of resources, when they dont have to??? Why is it??? They can print new currency,they say for 150 million, give it a value of 3 dollars/dinar, and not pay out trillions, allowing them to make trillions off the resources they keep. they the wealthiest country on the planet with their resources, why do they need to pay out to speculators? Countries will be upset??? Like they care. iraq has the wealth and the oil and they will always have someone buying it. even if they rd,companies will be begging for contracts to get a piece of the action. If iraqis are giving up all there dinar, they wont benefit from a rv. so we are to believe, the cbis plan is to take care of speculators and the US, because there so thankful we helped them out. sorry, not buying it.

Maybe they could but things with it. For instance, they could take 1715 USD's worth of today's IQD, and after a 1:1 RV, buy a $2 million dollar elementary school. Maybe they could buy some food that they don't grow yet. A railroad. A refinery. Some airplanes. Military equipment. Building materials. Electricity. Fresh Water. Sewers. Manufacturing plants. An agriculture business or two.

[truthful1]

There's an old saying, Maybe you've heard it before: The Rich get Richer and the Poor get poorer! Wouldn't surprise me if this is about taking all the dinars from the common Iraqi Fellow and all the Dinars they can get from the other neighboring countries through there daily auctions and then they RV! That way the same thing happens over there that happens here. The Rich get Richer and the Poor get Poorer! Genious.....

It could be. I dont have a phD in economics, but even i know a 1000 time increase would cause drastic inflation. inflation would be worse. you cant have that much money chasing so few goods. and if there is a deal with iraq and the us to reclaim dinar in oil credits, do you know how long and how much oil it would take to complete payments??? Iraq would have to give every dime of gdp for decades. how much oil will they have to give away to reclaim a currency they can just replaced for 150 million. even if they produce a barrel of oil for a nickel, they are losing 100 dollars a barrel because there not selling it. this idea that iraq is willing to give up half there resources just to get back currency is ridiculus. it makes no sense at all.

[tampa1000]

yes, an RD is very likely. it is a gamble. no big deal.

RD or RV, its NOT a big gamble, you still will have a currency that's worth something.....I'm not sure why people think this is a BIG GAMBLE you are not investing in Iran..

[truthful1]

RD or RV, its NOT a big gamble, you still will have a currency that's worth something.....I'm not sure why people think this is a BIG GAMBLE you are not investing in Iran..

Gamble......the dinar is for use only in iraq. they dont have to except dinar from outside iraq. the cbi law gives them an out. gamble.....did you buy your dinar from a company with a securities brokerage license. they are they only ones allowed to sell as investments. money service business or msbs cant sell investments. so even though you bought real official dinar some may have obtained it illegally for investment purposes. which could be gamble number 2. Which could make it a collectible. when you cash out at a bank, your going to have to show you bought from a non criminal origin with businesses allowee to sell it as an investment. otherwise they may say you bought as a collectible from.a msb. Just a few risks off the top of my head.

Edited January 26, 2012 by truthful1

[hame55]

It could be. I dont have a phD in economics, but even i know a 1000 time increase would cause drastic inflation. inflation would be worse. you cant have that much money chasing so few goods. and if there is a deal with iraq and the us to reclaim dinar in oil credits, do you know how long and how much oil it would take to complete payments??? Iraq would have to give every dime of gdp for decades. how much oil will they have to give away to reclaim a currency they can just replaced for 150 million. even if they produce a barrel of oil for a nickel, they are losing 100 dollars a barrel because there not selling it. this idea that iraq is willing to give up half there resources just to get back currency is ridiculus. it makes no sense at all.

You are assuming Iraq is in control of this RV, even though they are a client state of the US, recently invaded, uder UN watch (read: US watch) and totally controlled by gigantic Western business interests.

That's a might big assumption.

Gamble......the dinar is for use only in iraq. they dont have to except dinar from outside iraq. the cbi law gives them an out. gamble.....did you buy your dinar from a company with a securities brokerage license. they are they only ones allowed to sell as investments. money service business or msbs cant sell investments. so even though you bought real official dinar some may have obtained it illegally for investment purposes. which could be gamble number 2. Which could make it a collectible. when you cash out at a bank, your going to have to show you bought from a non criminal origin with businesses allowee to sell it as an investment. otherwise they may say you bought as a collectible from.a msb. Just a few risks off the top of my head.

Hey Raincloud - was that your Indian name?

These businesses selling dinar are registered with the US Treasury Department.

The evidence is also in the fact, that we know for sure they are selling OFF US dollars. They are selling off the US dollars, and purchasing the dinars back.

I believe there is some sort of saying the one that controls the money, controls the power? Something along those lines.

So if Iraq is able to purchase back even just a majority of the currency, they can control the value of it, backed by their substantial wealth in the ground... which is greater than pretty much any asset, anywhere in the world.

The CBI selling legit amounts of US dollars for the Iraq dinar, may seem crazy to us.. the end consumer, but to the corporations and banks this is great because they transfer money back and forth every day and have 100's millions to 100's of billions of dollars collectively.... so it is nothing to them to trade money on any given day to increase their profits... especially if they believe they can make marginal profits from the US dollars, selling them in Iran, etc.

And of course, they can always buy massive quantities of dinar at the flip of a switch.

What proof do we have of this?

[truthful1]

As small as a risk as some see it. its still a risk . we wont know unil that magical day. big misconception. being registered with the treasury still doesnt allow msbs to sell currencys as investments. either does the bbb sticker.

Edited January 26, 2012 by truthful1