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Currency Auctions Announcement No. (2284)

SocalDinar

By SocalDinar,
in Iraq & Dinar Related News

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SocalDinar Proficient

SocalDinar

Posted
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Large Cash portion on this auction 52,375 million

Currency Auctions

Announcement No. (2284)

The latest daily currency auction was held in the Central Bank of Iraq on the 30-Dec-2012. The results were as follows:

Details

Notes

Number of banks 26

Auction price selling dinar / US$ 1166

Auction price buying dinar / US$

Amount sold at auction price (US$) 241,848,000

Total offers for buying (US$) 241,848,000

Total offers for selling (US$) 0

http://www.cbi.iq/index.php?pid=CurrencyAuctions

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uncirculd Newbie

uncirculd

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Back to high auctions, bought a bunch of gold and lots of cash passing around. I am probably over reacting, but sounds like more money is funneling to Iran and Syria. (dollars that is. see notice they didn't mention where they bought the gold from. well we know iran has been trying to use gold for transactions to circumvent the sanctions)

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rockfl9 Explorer

rockfl9

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Purchase of gold would not show in the auctions, thats a dollar transaction of the MOF. The CASH sales are significant . It means that civilians are turning in dinar for dollars.because 1) they are afraid to hold dinar! OR 2) They can make money selling the dollars in the black market with Syria or Iran!

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SocalDinar Proficient

SocalDinar

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Purchase of gold would not show in the auctions, thats a dollar transaction of the MOF. The CASH sales are significant . It means that civilians are turning in dinar for dollars.because 1) they are afraid to hold dinar! OR 2) They can make money selling the dollars in the black market with Syria or Iran!

Hello Rockfl9,

I thought the auctions were primarily for payments of imported goods and services.

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uncirculd Newbie

uncirculd

Posted
Posted (edited)

Purchase of gold would not show in the auctions, thats a dollar transaction of the MOF. The CASH sales are significant . It means that civilians are turning in dinar for dollars.because 1) they are afraid to hold dinar! OR 2) They can make money selling the dollars in the black market with Syria or Iran!

Yeah the gold is the bigger problem. The dollarizing in Iraq or the cash transactions that are most likely illegal stuff going on. and the gold for cash money to Iran. Just added a few things together and the arms deal that is sure to hold up some progress.

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uncirculd Newbie

uncirculd

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I am still new around here - so could someone explain a little bit about what is going on with their auctions and are they the only country that holds such daily auctions?

Wow, I am the worst on the economics. Here's just a brief note on the auctions. Shabibi used the auctions for a few reasons. The auctions are one of the mechanisms to control inflation and also brings revenue. What we would like to see is very large amounts for a straight week. That could, does not mean is, could be an indication that they are lifting the 3 zero notes off the street.

If you come back to this thread there most likely will be someone else who could explain this a heck of a lot better than this peon.

So, it seems that the Iraqies are taking dinars and exchanging them for dollars to carry less in their pockets as well as they might not trust the value and stability of the dinar. Any help on the subject will be good for me.

Well it happens off and on. Not really new. I was referring to Iran and Syria syndrome. The cash auctions being high and the buying of Iranian gold. It's just more corruption I worry about. If they don't get this GOI transparent, it will become more and more difficult to move forward. All the political crises holds up laws and progress. It's just more fuel to the fire. In my opinion only.

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rockfl9 Explorer

rockfl9

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Bigwave::: The auctions are the way the government finances the budget. It's about $100B USD a year thats $1.9BUSD /week. Some of the income is in other than USD But those have established exchanges in ME banks so we dont see those amounts.

The major income is USD from oil.. SO an importer sells stuff for dinar and puts it into a bank . When the importer needs more dollars to pay for a new shipment it orders the bank to convert the dinar to dollars to pay the supplier (Who usually want dollars). The dinar are tranferred to the GOI accounts to pay its bills. Its a big circle.

Uncirculd and others want to think that the auctions remove dinar from circulation to reduce the total float . That cant be true OR there would be NO dinar left in Iraq.

The only way for the CBI to remove dinar from circulation would be for the GOI to spend LESS than income and put the surplus in CBI reserves..Presently no evidence it can do that.

IF the dinar were traded internationally ( FOREX like) the need for the auctions would go away..

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bigwave Grand Master

bigwave

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Keep thanks - there is a some reading to do and I will be back.

My first thought is that with the big purchases the dollars that need to be converted would be electronically. Like larger purchases with a credit card and would not necessarily change the volume of total dinars that are printed on or off the street.

Anyway I am sure after reading the information it will be explained for me.

Thank you BW.

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keepmwlknfny Newbie

keepmwlknfny

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Keep thanks - there is a some reading to do and I will be back.

My first thought is that with the big purchases the dollars that need to be converted would be electronically. Like larger purchases with a credit card and would not necessarily change the volume of total dinars that are printed on or off the street.

Anyway I am sure after reading the information it will be explained for me.

Thank you BW.

Well its definately a start.....might not explain.ALL the details but basically the ministry of finance gets USD.from oil.revenues and they exchange it by seling it to the CBI.for.dinar and in return the CBI.sells.those dollars in the auctions for a profit.....so nothing in circulation is taken away and destroyed like most gurus would tell you.....if that's the case th ere would be no dinar left. Its a tool used to keep inflation and the exchange rate stable......

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keepmwlknfny Newbie

keepmwlknfny

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Their are article from the past state some of the Currency is being destroyed, so let's no to forget to Keep that in Mind, In your Openness approach on this Investment!!

Yea its probly worn and damaged bills after they are exchanged for new ones......thats the first thought that comes to mind when you say that, but do you have the specific article(s)??

And they are probly printing much more then they are destroying as well....which would explain the every growing money supply....

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dontlop Newbie

dontlop

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well the 72 trillion dollars in the m2 has remained the same for this whole year now .. and the iraqis have taken i an additional 80 billion dollars .. hmm they havent added to the m2 . and the reserves are the same .. so wheres the money they jst spent it over seas ?all of it ..

they would of had to convert it at the program rate .. 1166.. and the m2 would of been 150 trillion by now .. when the govt issues the govt employees salarys . it is spent and and spent ,, and spent over and over again .. see the money doesnt lose value once its spent ,,its just transfered from one hand to the next ....

again wheres the money ..

iraq has taken in around 600 billion dollars in oil sales in the last 10 years

wheres the money ,,

the m2 shows 72 trillion ... when they have 600 trillion ..its somewhere

its hard to believe the m2 sits there at 72 trillion and the foriegn reserves sits there at 67 billion

are they being transparent ..if so wheres the money

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