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Currency Auctions Central Bank of Iraq on the 26-AUG-2012.


yota691
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Currency Auctions

Announcement No. (2199)

The latest daily currency auction was held in the Central Bank of Iraq on the 26-AUG-2012. The results were as follows:

DETAILS NOTES

Number of banks 28

Auction price selling dinar / US$ 1166

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 264,252,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 264,252,000

Total offers for selling (US$) -----

Exchange rates

Dollar's exchange rates / in Baghdad markets

Copyright © 2012. Central Bank of Iraq. All rights reserved. http://www.cbi.iq/index.php?pid=CurrencyAuctions

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Currency Auctions

Announcement No. (2199)

The latest daily currency auction was held in the Central Bank of Iraq on the 26-AUG-2012. The results were as follows:

DETAILS NOTES

Number of banks 28

Auction price selling dinar / US$ 1166

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 264,252,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 264,252,000

Total offers for selling (US$) -----

Big auction after 10 days off.

$264.25 million USD taken in, and the equavalent amount of Dinar returned to the street.

(264,252,000 x 1166 = 308,117,832,000)

No Dinar bought, no USD sold.

Interesting numbers.

Waiting to see how they handle the intro of Gold to the mix.

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Big auction after 10 days off.

$264.25 million USD taken in, and the equavalent amount of Dinar returned to the street.

(264,252,000 x 1166 = 308,117,832,000)

No Dinar bought, no USD sold.

Interesting numbers.

Waiting to see how they handle the intro of Gold to the mix.

Any information on when the introduction of gold will be reported?

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Any information on when the introduction of gold will be reported?

None that I have seen. They are making appointments to further grill the CBI, according to another article.

Also, even though the auction shows a large amount I'd dinar returning to circulation, the next auction may be selling USD.

It is often as regular as the tides; one cones in, the other goes ours - switch hands, repeat.

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None that I have seen. They are making appointments to further grill the CBI, according to another article.

Also, even though the auction shows a large amount I'd dinar returning to circulation, the next auction may be selling USD.

It is often as regular as the tides; one cones in, the other goes ours - switch hands, repeat.

isnt the number they auction off the same as the amount of oil revenues the take in each day?

i know their production is over 3 million a day .. and they dont export all of it .. but around what the auction is .. over 200 million a day now being bought" in dollars " that has to be converted into dinars and they do it through the auctions...

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isnt the number they auction off the same as the amount of oil revenues the take in each day?

i know their production is over 3 million a day .. and they dont export all of it .. but around what the auction is .. over 200 million a day now being bought" in dollars " that has to be converted into dinars and they do it through the auctions...

That is my understanding also.

I won't say that all of it goes through the auction initially, as there are some other distributions.

GOI exchanges Dollars for enough Dinar to pay salaries and for their domestic use.

5% goes into an account at the FRBNY for Kuwait reparations.

Not totally clear on the other flow, other than some goes into the DFI account at FRBNY, and CBI may add from what they take in to the Foreign Reserves account which is also at the FRBNY (Federal Reserve Bank New York).

Of the Dinar exchanged to the GOI and spent on salaries and local purchases, employees spend more into the economy.

Since Iraq is currently a dual currency country, each bank needs to have adequate amounts of both, so there is a constant flow and distribution. The Dollars or Dinar sold at one auction will eventually show up as proceeds on another auction. Wax on, Wax off.

The CBI makes a 13 Dinar profit per Dollar on exchangers of dollars for dinar, and transfers abroad.

If they are selling dollars, they are buying dinar. Conversely, if they are buying dollars, they are selling dinar.

That is about the extent of what I think I know about the flow.

I am always interested in corrections or additions to help me better undersand..

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it could be that eventually they end up with 200 trillion dinars on the books electronically and phisical .. then they convert them into new dinars at 1000 to one ...leaving them with 200 billion new dinars .. and knowing they only want 50 billion new dinars they rv to say a 4 dollar dinar .. simple division in a conversion .. the numbers i used are just made up for an example of a formula they may be using .. 80 billion in oil sales a year adds up fast .. thats 80 trillion dinars

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That is my understanding also.

I won't say that all of it goes through the auction initially, as there are some other distributions.

GOI exchanges Dollars for enough Dinar to pay salaries and for their domestic use.

5% goes into an account at the FRBNY for Kuwait reparations.

Not totally clear on the other flow, other than some goes into the DFI account at FRBNY, and CBI may add from what they take in to the Foreign Reserves account which is also at the FRBNY (Federal Reserve Bank New York).

Of the Dinar exchanged to the GOI and spent on salaries and local purchases, employees spend more into the economy.

Since Iraq is currently a dual currency country, each bank needs to have adequate amounts of both, so there is a constant flow and distribution. The Dollars or Dinar sold at one auction will eventually show up as proceeds on another auction. Wax on, Wax off.

The CBI makes a 13 Dinar profit per Dollar on exchangers of dollars for dinar, and transfers abroad.

If they are selling dollars, they are buying dinar. Conversely, if they are buying dollars, they are selling dinar.

That is about the extent of what I think I know about the flow.

I am always interested in corrections or additions to help me better undersand..

Hi Dalite~

Here is my understanding of the oil revenues and currency auctions

Flow Chart of Oil Revenues SIGIR July 2010 Page 102

(COFE supervises DFI now)

http://www.sigir.mil/files/quarterlyreports/July2010/Report_-_July_2010.pdf#view=fit

The government’s revenue is predominantly in US dollars, from oil sales. It's expenditure is largely in domestic currency, in this case Iraqi dinar so the CBI therefore needs to sell dollars for dinar.

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

(CBI sales history) scroll down to the bottom for most current auctions

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Hi Dalite~

Here is my understanding of the oil revenues and currency auctions

Flow Chart of Oil Revenues SIGIR July 2010 Page 102

(COFE supervises DFI now)

http://www.sigir.mil/files/quarterlyreports/July2010/Report_-_July_2010.pdf#view=fit

The government’s revenue is predominantly in US dollars, from oil sales. It's expenditure is largely in domestic currency, in this case Iraqi dinar so the CBI therefore needs to sell dollars for dinar.

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

(CBI sales history) scroll down to the bottom for most current auctions

Thanks, that is a great flow chart. I am going to print that page out for further reference.

I had to refer to the auction spreadsheet yesterday to see if they had skipped auctions during the past holiday period.

Last year, I sorted through some of the auctions, and attempted to sort out the breakdown, but it is difficult to track.

The thing to take away is that neither Dollars or Dinar are a use once and throwaway medium. Many feel the auctions do nothing but buy back dinar so there can be a larger RV.

like the flow chart shows. The money is distributed, where it can be redistributed. The likelihood that a single dinar note changes hands often and goes through any of the banks is far higher than the CBI taking it in and putting it in the vault cash category, or using the Foreign Reserves to purchase it and then cancel it.

There is great potential for the CBI to reduce dinar liability via the auctions. Unfortunately, this would be offset by falling Foreign Reserves.

In the case of the current 130% of what is necessary to back the exchange rate, to remove all liability by absorbing it and cancelling the debt would reduce the reserves in proportion.

They would still have Foreign reserves that are 30% of what they currently have, but no dinar to revalue.

Of course, this will never happen, as a lot is out of the country.

But, as we all can see, the Foreign Reserves are still trending up, as they have been since their inception in 2003.

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