Central Bank confirms the abandonment of an auction sale of foreign currency

[thegente]

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Central Bank confirms the abandonment of an auction sale of foreign currency

Central Bank announced today that his quest for the transfer of an auction sale of foreign currency (dollar) government to a commercial bank, saying the auction is not within its terms of reference.

The deputy governor of Bank of the appearance of Mohammed that "It is time for an auction sale of currency out of the central bank, and shall state that a commercial bank, Vmzad sell the currency does not fall within the competence of the Central Bank of Iraq."

He explained that "all banks in the world does not work that way, and we we were in the central bank finance foreign trade and this is not one of our missions."

He added that "unfortunately, the policy of central bank intervention in the market to maintain the stability of the Iraqi dinar ended in foreign trade financing to the private sector, because of the unity of the Iraqi economy (oil)."

He said "The market required graduation dollars under various pretexts legal and illegal, and there are worn out to get the hard currency, including not serve the Iraqi economy."

[sportfisher]

great, if not selling USD to get IQD back to increase liquidity............................then RV the IQD already

[Bat of Darkness]

So now they are passing the auctions on to another bank...saying that it was never supposed to be the Central Bank selling foreign currency anyway. I guess this is a good thing? Pushing the responsibility for counterfeit losses off on the commercial banks?

These folks have got an amazing bag of tricks.

[thegente]

Well, they learned from the best, our government....

[zigmeister]

Now this is interesting. We have been reading articles the auctions would be discontinued. What I don't understand how does this benefit the dinar by putting it on a commercial bank? There was a time they were quite proud of their auctions and controlling the dinar exchange rate. Any thoughts folks?

[thegente]

I was thinking that since they have beeen trying to get the banking system more privatized vs, a state-centric system, this could be one more move in that direction...JMO

[Mongo]

Smoke

to............

....... confuse....................are you confused? ....

[bamagirl]

I heard a long time ago that they had to continue the auctions until a significant rate change in order to control the artificial exchange rate.....so if the auctions are stopping shouldn't that mean the rate will not be an 'artificial' rate any longer? (can't remember where I heard that, maybe one of you will know what I'm talking about)

Smoke

to............

....... confuse....................are you confused? ....

YEP, I'm confused....

[zigmeister]

It could mean just that bamagirl. It is what they led us to believe. However in this article it seems they have not discontinued the auction but moving them in a commercial bank. Now could this mean a move by Iraq to deal with their auctions on an international level?

Yes it is confusing, and yes I am dazed and confused.

[Brisco]

Learning the Democratic shuffle quickly they are " says yoda" soon there may be an RV/RI/RD

[fastarnie]

I was thinking that since they have beeen trying to get the banking system more privatized vs, a state-centric system, this could be one more move in that direction...JMO

I like the new avatar. Too bad the federal government doesn't see it that way.

[pattyangel]

They say one thing and do another...my head is spinning in all directions, I'm more confused then ever. I'm just glad we have members that break it down for some of us.

zigmieister, I'm with you, that's pretty much where I left off on the information regarding the auctions.

[winterset]

I heard a long time ago that they had to continue the auctions until a significant rate change in order to control the artificial exchange rate.....so if the auctions are stopping shouldn't that mean the rate will not be an 'artificial' rate any longer? (can't remember where I heard that, maybe one of you will know what I'm talking about)

YEP, I'm confused....

I think I remember something like that being discussed.

I really doubt that the commercial banks will be able to handle the same volume as CBI but they will be able to track the buyers the same and inforce the new laws of trading.

Hopefully this means CBI is too busy with other important matters!

[skitealwedrop]

What's interesting is that the article did not disclose which institution or entity will conduct the auctions and the effective date of the change. I'm not sure what to believe. There is way too much smoke coming out of Iraq these day. There is something brewing with the Iraq's. That's a good thing for us.

[R Veyron]

Comparing themselves to "all the banks in the world", is Interesting.

[Unitedrich]

My opinion,

With the article quoting Shabbibi, and the fallout and aftermath, I would think that something like this may occur. As always, we sit on the sidelines while waiting for legitimate news to give us the real scoop. UR

[unirod]

What's interesting is that the article did not disclose which institution or entity will conduct the auctions and the effective date of the change. I'm not sure what to believe. There is way too much smoke coming out of Iraq these day. There is something brewing with the Iraq's. That's a good thing for us.

There is another article posted on DV that suggests the Rafadain bank will take over this responsibility.

At one time Rafadain Bank was an international high roller!!

[bamagirl]

What's interesting is that the article did not disclose which institution or entity will conduct the auctions and the effective date of the change. I'm not sure what to believe. There is way too much smoke coming out of Iraq these day. There is something brewing with the Iraq's. That's a good thing for us.

I was wondering about the effective date myself...

[thegente]

Looks like TBI will be taking over the currency auctions from now on:

Finance Committee suggest the ability of Trade Bank of Iraq take currency auction

Read more:

[Dady_Banker]

I like the part about trade. Why mess with exchanging USD when you can Trade.....! The possibilities are endless,..Its nice having a currency that means something again. Its sounds like they want to play with the big boys, I say come on and make some BIG BOY noise!!! GO RV BaBy!!

[LS1Hawk]

So to Quote Breitling - Iraq's Dirty Float - Is out the door, meaning their true value should be on it's way.

If the CBI is not going to artifically hold the currency at 1170/1166, We should see some movement, NO?

[skitealwedrop]

My opinion,

With the article quoting Shabbibi, and the fallout and aftermath, I would think that something like this may occur. As always, we sit on the sidelines while waiting for legitimate news to give us the real scoop. UR

Thanks for your post UR. The news coming out of Iraq is pretty much meaningless, at this point.

[bamagirl]

So to Quote Breitling - Iraq's Dirty Float - Is out the door, meaning their true value should be on it's way.

If the CBI is not going to artifically hold the currency at 1170/1166, We should see some movement, NO?

Yes.......EXACTLY what I was thinking!

[zigmeister]

The term dirty float brings weird images in my head.

[tandy]

Native Americans of yesteryear would have said they speak with forked tongues