CBI - Biggest auction ever.

[magawatt]

I thought CBI was selling US dollars being paid for by Iraqi dinars to reduce the number of Iraqi dinars the CBI would have to honor after RV. The title of this thread "CBI - Biggest auction ever. Pulls USD off of the streets" seems to be saying the opposite, but maybe the attached article states differently. Is it confusing enough yet?

Edited May 4, 2012 by magawatt

[FETUSSSS]

Iraq just makes me want to puke blood at this point.

[pt49]

They ARE selling Dollars... but riddle me this freddie... where the hell are the buyers getting the freakin dinars?

April sales of over 3 BILLION USD means the buyers needed to find over 3 TRILLION dinars in April... that's 10% of the TOTAL amount of Dinars printed since the new currecy was issued about 9 years ago... IN ONE MONTH!!!

Not possible in my opinon, someone is issuing bullc**p articles from Iraq or someone has been hoarding Dinars and is now unloading them.

3 trillion dinars weigh's in 25,000 notes is 75 billion notes... that is 3,570,000,000 notes a day for each working day in the month

A 25,000 dinar note weigh's 1 gram, so Iraqi's carted over 3,570 TON'S of dinars a day to the bank... EVERY working day for the month of April.

3,570 tons means that the equivalent of 89 semi-trailors with 18 wheels are carting Dinars to banks in Iraq EVERY working day.

[DMOT]

All you do is confuse people ......I'm going back to recaps...LOL

[magawatt]

One happy thought- why would they go to all this trouble and expense if they were going to lop?

[pt49]

I don't believe LOP theory myself, however it would save a lot of trucking using a lot of fuel... the greenies would love that

[Luigi1]

I thought CBI was selling US dollars being paid for by Iraqi dinars to reduce the number of Iraqi dinars the CBI would have to honor after RV. The title of this thread "CBI - Biggest auction ever. Pulls USD off of the streets" seems to be saying the opposite, but maybe the attached article states differently. Is it confusing enough yet?

This action may help dry up the IQD in Iraq but does nothing for what the CBI must honor abroad. Foreigners are not about to give up their IQD until the ride is over.

[pt49]

This action may help dry up the IQD in Iraq but does nothing for what the CBI must honor abroad. Foreigners are not about to give up their IQD until the ride is over.

The CBI has stated it has no interest in the Dinars offshore... they will become part of our countries foreign reserve holdings, and just like the US$'s in China, they will never go back to the country that issued them.

If China asked the FED to cash in the US$'s they hold back into Yuan, America would collapse.

[keepmwlknfny]

Does someone actually know if they are reducing the Dinar supply or the opposite? I thought they want the citizens to have dinars?

This would mean this auction is bad for our investment right?

There is not even the slightest indication that the money supply is being reduced....in fact, everything shows just the opposite!

The auctions have nothing to do with reducing the money supply, or pulling in dinar or even USD off the streets......its mainly only banks participating in these auctions which is why and how so much money is being moved each day!

The auctions are used to balance and keep the exchange rate stable (and if Im not mistaken, also helps inflation) Thats pretty much it....

The GOI is pulling in nothing but USD for selling its oil, they have to turn that USD into dinar somehow so the ministry of finance trades the USD for dinar to the CBI.....the CBI then sells the USD at its auctions for profit.....that is what the auctions are for in a nut shell....

[truthful1]

There is not even the slightest indication that the money supply is being reduced....in fact, everything shows just the opposite!

The auctions have nothing to do with reducing the money supply, or pulling in dinar or even USD off the streets......its mainly only banks participating in these auctions which is why and how so much money is being moved each day!

The auctions are used to balance and keep the exchange rate stable (and if Im not mistaken, also helps inflation) Thats pretty much it....

The GOI is pulling in nothing but USD for selling its oil, they have to turn that USD into dinar somehow so the ministry of finance trades the USD for dinar to the CBI.....the CBI then sells the USD at its auctions for profit.....that is what the auctions are for in a nut shell....

Exactly. the auctions have nothing to do with reducing currency. Yes...the currency in circulation continues to grow after years of running the auction. Its amazing how the gurus have twisted the subject...when every financial indicator and statistics show otherwise.

Edited May 4, 2012 by truthful1

[zigmeister]

There is not even the slightest indication that the money supply is being reduced....in fact, everything shows just the opposite!

The auctions have nothing to do with reducing the money supply, or pulling in dinar or even USD off the streets......its mainly only banks participating in these auctions which is why and how so much money is being moved each day!

The auctions are used to balance and keep the exchange rate stable (and if Im not mistaken, also helps inflation) Thats pretty much it....

The GOI is pulling in nothing but USD for selling its oil, they have to turn that USD into dinar somehow so the ministry of finance trades the USD for dinar to the CBI.....the CBI then sells the USD at its auctions for profit.....that is what the auctions are for in a nut shell....

I understand what you are saying Keep, but what I don't understand is; if these auctions are to keep the exchange rate stable, why hasn't it according to them? It seems we are missing a piece here.

[rightsonword]

I have a dumb question: How do you calculate the worth of a pegged currency? By diving the money in circulation by the amount in reserves? So if Iraq has 29 trillion IQD in circulation and we divide it by $60 billion in reserves, would that mean a value of 483 to the dollar? So, I guess my question is how does the rate stay at 1166 or whatever its at when the reserves aren't growing and the money supply is growing according to the CBI reports?

[truthful1]

I have a dumb question: How do you calculate the worth of a pegged currency? By diving the money in circulation by the amount in reserves? So if Iraq has 29 trillion IQD in circulation and we divide it by $60 billion in reserves, would that mean a value of 483 to the dollar? So, I guess my question is how does the rate stay at 1166 or whatever its at when the reserves aren't growing and the money supply is growing according to the CBI reports?

The exchange rate covers the total amount of m2. Last time i checked the m2 was around 60 trillion. the reserves are growing. the cbi gets i think 8 to 13 dinar for every dollar at auction, depending on whether they are buying or selling. Also as more dinars are sold dollars and other foreign currencies end up in the reserves, in which the cbi gains again on the spread

Edited May 4, 2012 by truthful1

[rightsonword]

The exchange rate covers the total amount of m2. Last time i checked the m2 was around 60 trillion. the reserves are growing. the cbi gets i think 8 to 13 dinar for every dollar at auction, depending on whether they are buying or selling. Also as more dinars are sold dollars and other foreign currencies end up in the reserves, in which the cbi gains again on the spread

Thank you for the response, but I'm still somewhat confused. If the reserves are growing, why do most articles/CBI say it is at or has been stagnant at $60 billion? Where is the reserves growth reflected? Also, if the m2 is 60 trillion, wouldn't that make the value of the dinar much less than what is it now if they only on face value have $60 billion in reserves? Wouldn't they need much, much more in reserves to cover a rate of 1166? If there is 60 trillion in circulation, and only $60 billion worth in reserves, then the IQD would have to be valued much less, would it not? I can't imagine them taking in enough on the spread to cover to growing M2.

[rightsonword]

Thank you for the response, but I'm still somewhat confused. If the reserves are growing, why do most articles/CBI say it is at or has been stagnant at $60 billion? Where is the reserves growth reflected? Also, if the m2 is 60 trillion, wouldn't that make the value of the dinar much less than what is it now if they only on face value have $60 billion in reserves? Wouldn't they need much, much more in reserves to cover a rate of 1166? If there is 60 trillion in circulation, and only $60 billion worth in reserves, then the IQD would have to be valued much less, would it not? I can't imagine them taking in enough on the spread to cover to growing M2.

My mistake, 60 trillion m2 and $60 billion reserves would make it closer to the current rate.

[uncirculd]

They are buying dollars with dinar? Sure you have that right?

I sure hope Lugi has it right. That would be great.

Its good to have patients in this investment.

I gather your a butt dermatologist from your avatar name. Interesting field......a lot of booty calls I imagine.

your right about that. Any investment is not overnight and can take years. and i have not seen an

investment like we hope to have in this one ever. maybe kuwait. i was not involved with that.

but i do invest and made mistakes and did some good choices too. this looks to be the best if it

does come to fruition.

[C.H.]

From another site...

CBI Bank Auction Smashes The Previous Figures To Sell Half A Billion Dollars In One Day.

05/02/2012

BAGHDAD / JD smashed the Iraqi Central Bank auction on Wednesday, all indexes of the previous and the dollar amounts sold, where he now sells more than half a billion dollars at prices less than market prices by 10 points.

He said the central bank in a statement obtained (JD) a copy of which was the opening of bids for the sale and purchase of dollar daily sixth and Twenty-two thousand for buying and selling foreign currency at the Central Bank of Iraq day Wednesday, 5/2/2012 and the results were as follows:

- the number of banks contribute to the auction 15 , and the basic price, which landed him selling dinars / USD 1166, and the basic price, which landed him buying dinars / dollars /

Read more. See link below....

http://bit.ly/IGFhZP

Could this be in preparation of introducing the new lower denom IQD? What is your reaction?

Finally some good news from an economic stand point they are shoring up their currency to minimize inflation very positive, in the future we maybe looking at the world's new reserve currency here.

[keepmwlknfny]

I understand what you are saying Keep, but what I don't understand is; if these auctions are to keep the exchange rate stable, why hasn't it according to them? It seems we are missing a piece here.

Its because of the massive upswing in demand for the USD through the auctions because of Syria and Iran.....they are having to dip into their foreign reserve stash of USD to pay out participating banks/traders....

[cashman54]

There is not even the slightest indication that the money supply is being reduced....in fact, everything shows just the opposite!

The auctions have nothing to do with reducing the money supply, or pulling in dinar or even USD off the streets......its mainly only banks participating in these auctions which is why and how so much money is being moved each day!

The auctions are used to balance and keep the exchange rate stable (and if Im not mistaken, also helps inflation) Thats pretty much it....

The GOI is pulling in nothing but USD for selling its oil, they have to turn that USD into dinar somehow so the ministry of finance trades the USD for dinar to the CBI.....the CBI then sells the USD at its auctions for profit.....that is what the auctions are for in a nut shell....

Thanks Keep for pointing that out, now i will know not to get excited or stressed over an auction!!!

[msmortgagewiz]

Whatta .....5/2/12 ..is over 3 months ago....

[Hell froze over]

Thanks Keep for pointing that out, now i will know not to get excited or stressed over an auction!!!

AAGGHHHH Revaluation is the question of inflations its not the question we are going to track firs you can not have and what extent if you go to the central bankyou willl see the objrctive is

its maintaining price stability and second there is the inflation of course e look at imports exports .the question is to maintain stability the central banks of course do not track inflation andthe question is ,THIS QUESTION OF cutting the 3 zeros is of course if you ant be precise we have a plan for that so goverments of course exchange with the question are we champions with to many zeros so we delete zero and hand in hand we are stuying the zeros.