yota691 Posted October 24, 2012 Report Share Posted October 24, 2012 (edited) News and announcements Looks like a PDF can someone translate to English Please!! Press release about the continuation of the CBI in the real normal practice of the Iraqi economy and optimal utilization of available financial resources 10/18/2012 http://www.cbi.iq/documents/press%20for%2018-10-2012.pdf A press announcement about informed the Central Bank of Iraq on Metrdd news refers to postpone the implementation of the restructuring of the Iraqi currency project and the deletion of three Asfarmenha 07/10/2012 http://www.cbi.iq/documents/press%20for%207-10-2012.pdf Yet to figure out these PDF, Thanks Edited October 24, 2012 by yota691 1 Link to comment Share on other sites More sharing options...
Dinar Buddy Posted October 24, 2012 Report Share Posted October 24, 2012 We wait... we wait... could still be 2-3 years. Let's just RV this thing 3 3 Link to comment Share on other sites More sharing options...
uncirculd Posted October 25, 2012 Report Share Posted October 25, 2012 Yota, let me get my arabic tongue working. Link to comment Share on other sites More sharing options...
endeavor1 Posted October 25, 2012 Report Share Posted October 25, 2012 Just RV the currency and get it over with, please, thank you. 1 Link to comment Share on other sites More sharing options...
tilak Posted October 25, 2012 Report Share Posted October 25, 2012 Asfarmenha means something like = victorious, in harmony with others, intellectual. Hopefully the Iraqis have enough intellect to RV victoriously. 1 Link to comment Share on other sites More sharing options...
yota691 Posted October 27, 2012 Author Report Share Posted October 27, 2012 We now have another one!! Can anybody help translate!! NONE OF THESE ARE POSTED ON THE ENGLISH SIDE OF THE CBI WEBSITE ------------------------------------------------------------------------ 10/24/2012 Press Release about as experienced foreign currency auction in place on Wednesday, 10.24.2012 remarkable decline continuation of the monetary policy pursued by the Central Bank of Iraq http://www.cbi.iq/?pid=Home〈=ar Link to comment Share on other sites More sharing options...
FXStockpiling Posted October 27, 2012 Report Share Posted October 27, 2012 We now have another one!! Can anybody help translate!! NONE OF THESE ARE POSTED ON THE ENGLISH SIDE OF THE CBI WEBSITE ------------------------------------------------------------------------ 10/24/2012 Press Release about as experienced foreign currency auction in place on Wednesday, 10.24.2012 remarkable decline continuation of the monetary policy pursued by the Central Bank of Iraq http://www.cbi.iq/?pid=Home〈=ar Statement issued by the Central Bank of Iraq A continuation of the monetary policy pursued by the Central Bank of Iraq saw the currency auction Foreign place on Wednesday, 24.10.2012 remarkable decline, reaching the amount of Currency sold (181600000) versus $ (238699000) dollars a day Previous him. As witnessed the exchange rate in the parallel market remarkable stability and reached 1198 dinars per dollar for sale compared to 1196 dinars per dollar for purchase. We Media The bank constantly in public to provide foreign currency for various purposes to serve Real requirements of the Iraqi economy. CBI Baghdad 201/10/24 P 2 Link to comment Share on other sites More sharing options...
jeepguy Posted October 27, 2012 Report Share Posted October 27, 2012 thanks f,x, stocks ------ Link to comment Share on other sites More sharing options...
yota691 Posted November 1, 2012 Author Report Share Posted November 1, 2012 this up gregp Link to comment Share on other sites More sharing options...
SocalDinar Posted November 1, 2012 Report Share Posted November 1, 2012 I'll see if I can get this done by this afternoon, Local liquor store owners son is from Syria. Heading to work and hoping he will be there this afternoon so worst case Friday. 1 Link to comment Share on other sites More sharing options...
Alexyn1006 Posted November 1, 2012 Report Share Posted November 1, 2012 I'm still visiting my son in law who is Lebanese, I'll see if he can make sense of Iraqi Arabic. Link to comment Share on other sites More sharing options...
gregp Posted November 1, 2012 Report Share Posted November 1, 2012 this up gregp Thank you very much Mr Yota! You are awesome! Link to comment Share on other sites More sharing options...
Houston1099 Posted November 1, 2012 Report Share Posted November 1, 2012 http://translate.goo...ews/view.13098/ 20/06/2012 10:03BAGHDAD / Bri Center for the Iraqi Media Network - Parliamentary Finance Committee revealed that Iraq will trade currencies at the same time during the next year 2013 through new currency trading after the deletion of zeros with the survival of the current currency trading throughout the year in question. A member of the Finance Committee Hassan Salman's (Brief Center for the Iraqi Media Network) that "the central bank works for more than six months from now on the position of the deletion of zeros from the Iraqi currency current and that will apply starting from next year." He pointed out that "the Finance Committee on the lookout and constant contact with the central bank governor and his aides with access constantly Finance Committee on the details of this issue and the process of replacing the current currency in the new currency will continue throughout the next year." He said, "dealing in the currency will end the current beginning of 2014 and this process will lead to the strengthening of the Iraqi currency, especially after fluctuating exchange rate of the Iraqi dinar against the U.S. dollar in recent." And that "modify the currency will benefit the Iraqi economy and facilitate the cash handling in the country by reducing the money supply in circulation and which Tkdrbhawwala 30 trillion dinars." The Iraqi Central Bank revealed earlier that the new Iraqi currency will raise her three zeros, indicating that it conducted an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency. The Central Bank of Iraq four branches in Basra and Sulaymaniyah, Irbil and Mosul, where established bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March / March 2004, and is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and management of foreign reserves and the issuance of and currency management, as well as to regulate the banking sector Readers 1496 3 Link to comment Share on other sites More sharing options...
gregp Posted November 2, 2012 Report Share Posted November 2, 2012 http://translate.goo...ews/view.13098/ 20/06/2012 10:03BAGHDAD / Bri Center for the Iraqi Media Network - Parliamentary Finance Committee revealed that Iraq will trade currencies at the same time during the next year 2013 through new currency trading after the deletion of zeros with the survival of the current currency trading throughout the year in question. A member of the Finance Committee Hassan Salman's (Brief Center for the Iraqi Media Network) that "the central bank works for more than six months from now on the position of the deletion of zeros from the Iraqi currency current and that will apply starting from next year." Thanks Houston1099!! ! He pointed out that "the Finance Committee on the lookout and constant contact with the central bank governor and his aides with access constantly Finance Committee on the details of this issue and the process of replacing the current currency in the new currency will continue throughout the next year." He said, "dealing in the currency will end the current beginning of 2014 and this process will lead to the strengthening of the Iraqi currency, especially after fluctuating exchange rate of the Iraqi dinar against the U.S. dollar in recent." And that "modify the currency will benefit the Iraqi economy and facilitate the cash handling in the country by reducing the money supply in circulation and which Tkdrbhawwala 30 trillion dinars." The Iraqi Central Bank revealed earlier that the new Iraqi currency will raise her three zeros, indicating that it conducted an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency. The Central Bank of Iraq four branches in Basra and Sulaymaniyah, Irbil and Mosul, where established bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March / March 2004, and is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and management of foreign reserves and the issuance of and currency management, as well as to regulate the banking sector Readers 1496 Link to comment Share on other sites More sharing options...
hame55 Posted November 2, 2012 Report Share Posted November 2, 2012 He said, "dealing in the currency will end the current beginning of 2014 and this process will lead to the strengthening of the Iraqi currency, especially after fluctuating exchange rate of the Iraqi dinar against the U.S. dollar in recent." And that "modify the currency will benefit the Iraqi economy and facilitate the cash handling in the country by reducing the money supply in circulation and which Tkdrbhawwala 30 trillion dinars." The Iraqi Central Bank revealed earlier that the new Iraqi currency will raise her three zeros, indicating that it conducted an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency. THE SCARY QUOTE IS THE STUDY THAT SAYS DELETING THE ZEROS WILL RAISE VALUE OF DINAR - AN LOP IS NOT VIEWED BY THEM AS A NEUTRAL EVENT (KEEP - ARE U THERE?) AN LOP WILL RAISE THE VALUE OF THE DINAR BECAUSE IT WILL BRING CIRCULATION FROM TRILLIONS TO BILLIONS. 1 1 Link to comment Share on other sites More sharing options...
MITCH10 Posted November 2, 2012 Report Share Posted November 2, 2012 I really really hate to say this but I think we are heading to a LOP. I will lose money if they LOP and then RV 1:1....... I don't feel so well. Good night. Mitch. 1 Link to comment Share on other sites More sharing options...
yota691 Posted November 2, 2012 Author Report Share Posted November 2, 2012 Thank you very much Mr Yota! You are awesome! I get a lot help from a Great Group of Folks!! Link to comment Share on other sites More sharing options...
mrmcwhipit Posted November 2, 2012 Report Share Posted November 2, 2012 He said, "dealing in the currency will end the current beginning of 2014 and this process will lead to the strengthening of the Iraqi currency, especially after fluctuating exchange rate of the Iraqi dinar against the U.S. dollar in recent." And that "modify the currency will benefit the Iraqi economy and facilitate the cash handling in the country by reducing the money supply in circulation and which Tkdrbhawwala 30 trillion dinars." The Iraqi Central Bank revealed earlier that the new Iraqi currency will raise her three zeros, indicating that it conducted an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi THE SCARY QUOTE IS THE STUDY THAT SAYS DELETING THE ZEROS WILL RAISE VALUE OF DINAR - AN LOP IS NOT VIEWED BY THEM AS A NEUTRAL EVENT (KEEP - ARE U THERE?) AN LOP WILL RAISE THE VALUE OF THE DINAR BECAUSE IT WILL BRING CIRCULATION FROM TRILLIONS TO BILLIONS. Maybe they mean lifting the zeroes off .00086 ? hope so. 1 Link to comment Share on other sites More sharing options...
unirod Posted November 2, 2012 Report Share Posted November 2, 2012 .00086 is a garbage rate, always has been. According to SIGOR report Oct 2012, they are closer to the real rate. Maybe all the fear of deleting 3 zeros and the benefits to Iraq has been studied because Iraq intends to R/I at over $3 ?. This indeed may cause investment stagnation? Iraq would be too expensive to invest in so some argue? I believe that Iraq indeed will R/I....IMO Additionally; an R/I would be a protectionist move on the part of the GOI to expand the GDP in a controlled way and against all practical wisdom... 2 Link to comment Share on other sites More sharing options...
Alexyn1006 Posted November 2, 2012 Report Share Posted November 2, 2012 So unirod, IYO, does this elude to a lop then RI? Link to comment Share on other sites More sharing options...
SocalDinar Posted November 2, 2012 Report Share Posted November 2, 2012 (edited) News and announcements Looks like a PDF can someone translate to English Please!! Press release about the continuation of the CBI in the real normal practice of the Iraqi economy and optimal utilization of available financial resources 10/18/2012 http://www.cbi.iq/documents/press%20for%2018-10-2012.pdf A press announcement about informed the Central Bank of Iraq on Metrdd news refers to postpone the implementation of the restructuring of the Iraqi currency project and the deletion of three Asfarmenha 07/10/2012 http://www.cbi.iq/documents/press%20for%207-10-2012.pdf Yet to figure out these PDF, Thanks i just showed these to my Syrian Friend. 10/18/2012 http://www.cbi.iq/documents/press%20for%2018-10-2012.pdf basically saying that the auction amounts have gone down but he was confused with the last sentence. He read it as saying the 1199 and 1200 was the CBIs Buy and sell price ( Not market price ) 07/10/2012 http://www.cbi.iq/documents/press%20for%207-10-2012.pdf This one the date confused him a bit but says the symbol after the 2012/ 1 in the Arabic version Means October so he read the date as October 7, 2012 but still said it was not a normal date format. Article says that when its printed that putting money into the market after printing MUST happen on 1st of a Year and not during the year. Hope this helps Edited November 2, 2012 by SocalDinar 2 Link to comment Share on other sites More sharing options...
teddyruxbin Posted November 2, 2012 Report Share Posted November 2, 2012 We wait... we wait... could still be 2-3 years. Let's just RV this thing Not likely...not unless they plan to print an even more worthless currency after the global economic collapse happens. I say it's possibly just more BS to discourage investors.The fewer civilian investors the more pie for the higher ups in the 'know' Link to comment Share on other sites More sharing options...
keepmwlknfny Posted November 2, 2012 Report Share Posted November 2, 2012 THE SCARY QUOTE IS THE STUDY THAT SAYS DELETING THE ZEROS WILL RAISE VALUE OF DINAR - AN LOP IS NOT VIEWED BY THEM AS A NEUTRAL EVENT (KEEP - ARE U THERE?) AN LOP WILL RAISE THE VALUE OF THE DINAR BECAUSE IT WILL BRING CIRCULATION FROM TRILLIONS TO BILLIONS. Yep....the end result is a higher valued NEW dinar....and thats what they have been saying this whole time. I think it confuses people because they dont see how a lop would make a stronger dinar, but by reducing the money supply from trillions to billions, you effectively have less money out there, still have the same amount of reserves backing it, so each dinar left over is now worth more! Maybe they mean lifting the zeroes off .00086 ? hope so. Its both....the zeros come off the notes, and in return the NEW notes also have the zeros off the exchange rate.... Like I was saying to Hame55, this is where the confusion is because all the gurus claim a lop is devaluing the currency but its not....the zeros come off the notes and the exchange rate so you end up with the same value as you had before although your 25k note is now equal to (1) new 25 note....the old notes that we hold now would never see the rate change though.... 7 4 Link to comment Share on other sites More sharing options...
yota691 Posted November 2, 2012 Author Report Share Posted November 2, 2012 (edited) Maybe they mean lifting the zeroes off .00086 ? hope so. Depends on who talking and what one believe's!! Raising Removing Replacing!! At least it didn't compare it to Turkey with all these History repeats itself!! IMO you don't have massive currency auctions Sucking in IQD and USD being given out like it candy, without a reason!! So I'm sticking with Replacing the currency, all long Removing it from Circulation and Raising the Rate!! JMO Edited November 2, 2012 by yota691 3 Link to comment Share on other sites More sharing options...
keepmwlknfny Posted November 2, 2012 Report Share Posted November 2, 2012 Depends on who talking and what one believe's!! Raising Removing Replacing!! At least it didn't compare it to Turkey with all these History repeats itself!! IMO you don't have massive currency auctions Sucking in IQD and USD being given out like it candy, without a reason!! So I'm sticking with Replacing the currency, all long Removing it from Circulation and Raising the Rate!! JMO But the auctions dont remove currency from circulation....its just a big cycle of exchanging one for the other.... The Foreign Exchange Auction In Iraq (CBI) Middle East Economic Survey VOL. XLVIII No 18 2-May-2005 The Foreign Exchange Auction In Iraq By Simon Gray Simon Gray is Adviser, Markets and Financial Infrastructure, Centre for Central Banking Studies (CCBS), Bank of England. During his secondment to the Coalition Provisional Authority (CPA) in Baghdad, he was Senior Advisor to the Central Bank of Iraq. He wrote this article for MEES. The Central Bank of Iraq (CBI) introduced a foreign exchange auction on 4 October 2003, just under a fortnight before the start of the currency exchange (which replaced the old banknotes, and ran from 15 October to 15 January 2004). The timing was to a large extent dictated by that of the currency exchange, but the underlying need reflects Iraq’s position as a major oil-exporting country. Background The government’s revenue is predominantly in US dollars, from oil sales. To this extent, Iraq’s position is similar to that of many countries in the region. And in common with many countries in the region, its expenditure is largely in domestic currency, in this case Iraqi dinar. The Ministry of Finance therefore needs to sell dollars for dinar. Typically, a Ministry of Finance with foreign currency revenues will sell surplus foreign exchange (it will use some for the purchase of imports for government projects etc; and may keep some in a separate oil stabilization fund) to the central bank; and the central bank will on-sell dollars to the market, via the banking system. Under a fixed exchange rate regime – and many oil-exporting countries in the region operate such a policy – it is clear at what rate the Ministry should sell to the central bank. The central bank can then on-sell, at the same rate, whenever banks request dollars. Prior to the war, Iraq operated a fixed exchange rate regime (albeit with a hopelessly non-market exchange rate), supported by exchange controls. But post war, the central bank was not in a position to operate a fixed exchange rate regime, and in any case did not want to lock into the exchange rate prevailing at the time. 1 From the end of the war though summer 2003, the exchange rate was purely market-determined – the market in question being a street market for physical cash in three main locations in Baghdad. But the Ministry and central bank did not need to make use of this market, as official expenditure at that time was mostly in US dollar bills.2 From October, things had to change. Once the currency exchange was under way (from 15 October), it was clearly important – if only from a political point of view – for the government to make disbursements in the new Iraqi dinar, rather than predominantly in dollars as had been the case since May. This meant that the Ministry needed a reference rate at which it could sell dollars to the central bank; and the central bank needed a mechanism for on-selling dollars to the market. Without a mechanism to rechannel dollars to the economy, there would have been two consequences: A shortage of dollars could hit the dinar exchange rate, leading potentially to a very sharp depreciation; A dollar shortage would also cut off import supply, pushing up prices sharply. (Large amounts of dollar expenditure by the CPA and MoF had, predictably, fed through to a huge increase in imports, as previously suppressed demand could now be satisfied.) Associating the introduction of the ‘new’ currency with sharp depreciation, cutting of the supply of consumer goods, and a hike in prices for those goods still available would have been disastrous. An Auction As The Solution The solution was to introduce a foreign exchange auction. This was kick-started by the CBI selling a small amount of its foreign exchange reserves to the market. Thereafter, the auction rate could be used for MoF dollar sales to the CBI (so that it would be a genuine market rate, rather than something based on a straw poll of street exchanges); and the market could bid for dollars in the auction to meet the level of demand. If demand was excessive, the rate would adjust. We were aware that, once the new currency was available, the MoF would be selling several hundred million dollars a month to the CBI, and that auctions could easily exceed $10mn a time as the domestic demand generated by government expenditure (payment of salaries, pensions etc) fed though to import demand (since many consumer goods had to be imported), and thus demand for foreign currency. It was important to prepare the market for the auction system, and ideally to have a mechanism up and running, before the amounts became large. This meant starting in early October at the latest. The full details of the auction need not be covered here. Importantly, several meetings were held with the commercial banks and the non-bank licensed foreign exchange dealers to discuss the mechanics and the purpose of the auction. Three dry runs of the auction were held, to give participants a better feel and ensure the mechanics worked. The first dry run was very messy; but by the end everyone understood not only how to complete bidding forms correctly, but how to participate in the price formation process and learn from the previous auctions. All the banks and foreign exchange dealers also understood how the CBI would participate. It would look at the volume and price of bids from the market before deciding on its own participation, so that it could choose the cut-off rate. Clearly, no central bank can have full freedom in this: trying to keep the dinar too strong could lead to an unsustainable drain on limited reserves, while trying to hold back appreciation could have an inflationary impact. But at the margin, and for a time, the CBI could influence the rate. Since the market is allowed to participate in the auction in either direction (buying or selling dollars), it is possible that the central bank will not need to participate at all. But in practice there will nearly always be a large net demand for foreign currency by the market. Banks and licensed foreign exchange dealers were allowed to submit bids directly to the central bank; but the dealers had to accompany their bids by a confirmation from their bank that funds were available to honor the bid, if successful. Settlement is book-entry only, across accounts at the central bank. Most bids are made in the 15-30 minutes before the cut-off time for the auction; and results are published 30 minutes after the close of bidding. Details can be found on the CBI website (www.cbiraq.org). Settlement is same-day. The short time-scale – only possible with book-entry settlement – helps to keep the auction and the rest of the market in line with each other. The Auction, Exchange Rate Policy And Inflation The first auction was held on 4 October 2003, and received a single bid, for $20,000. There was some debate about whether to accept it, since it was arguably below the market rate. But the CBI decided it was important to give a positive signal to the banks, to encourage participation in the future, and the bid was accepted. Within a couple of weeks, the bid rate at the auction and the street price – CBI staff went out three times a day to check prices at a range of locations (preferring those where prices were displayed, rather than given in response to a request) – had merged; and volumes were soon close to $10mn3. The majority of Iraqi banks participate regularly. The CBI has said regularly in the auction result announcements that its aim is to achieve broad exchange rate stability, in order to support domestic price stability. There is no exchange rate target or band. The CBI has been able to meet demand, and there is not enough economic information for the market to take a strong view on what an ‘appropriate’ level of the exchange rate might be, certainly not to push for change in the rate. But while the ‘right level’ was not clear, the CBI could be confident that excessive volatility was harmful. After the massive shocks to the economy and to society more widely in the previous months, it was important as far as possible to engender an atmosphere of stability – particularly in the early days of the currency exchange, when many Iraqis would see their income switching from dollar cash to new dinars. In any case, in view of the upward stickiness of some prices, it was likely that exchange rate volatility would tend to increase the level of inflation. Especially in the early days, it was not clear what a ‘normal’ level of day to day volatility might be, since there was no ‘normal’ period to compare with. The chart above shows the daily returns on holdings of new Iraqi dinar, and clearly indicates much more volatility in the early days of the auction, and of the currency exchange, than more recently. Two particular spikes in the chart – in early December and mid January – can be linked to the announcement of Saddam’s capture (when it was not clear what the long term impact would/should be), and the end of the currency exchange, when the trend appreciation of the dinar (arguably starting with Saddam’s capture) led to ‘irrational exuberance’. In the former case, the CBI made no attempt to stand against the trend, but did help to smooth it by the level and rate of its participation in the auctions. By contrast, the very sharp appreciation of the dinar in early January seemed unwarranted and almost certainly unsustainable; and it was clearly upsetting the market4. On this occasion – on 15 January 2004 – the CBI bought a small amount of dollars at the auction, and indicated that the recent appreciation of the dinar ‘was not supported by any recent political or economic announcements’. In other words, the CBI again avoided taking a stance on the appropriate level of the exchange rate, but merely noted that nothing had changed recently which would justify the very sharp movements in preceding days. This worked, as the chart below indicates. Similar action in January 2005, just ahead of the national elections, was also undertaken in response to an increase in volatility, but otherwise the market has been remarkably quiet. Reducing exchange rate volatility, and then supporting a remarkably stable nominal exchange rate since the beginning of 2004, has proved to be a very powerful tool in meeting the CBI’s objective of low domestic inflation (formalized in the new CBI law, dated 6 March 2004). In Iraq, as in many commodity-exporting open economies, there is a rapid pass-through from the exchange rate to domestic inflation. The correlation is bound to be unstable, as it will be affected by expectations, changes in the level of demand (eg reflecting changes in the security situation), changes in the direct costs of importing goods in an unsafe environment, and periodic supply disruptions. But prima facie, there is strong evidence that a stable exchange rate has helped to support price stability. __________________________________________________ ______________ 3 3 Link to comment Share on other sites More sharing options...
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