Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Central Bank calls for banks to get the right to sell the U.S. dollar


Markinsa
 Share

Recommended Posts

Central Bank calls for banks to get the right to sell the U.S. dollar

19:13

Hits: 11

BAGHDAD / obelisk: stressed the Central Bank of Iraq, Monday, he was in the process of opening the door to get the right to sell the dollar for all Iraqi banks.

The governor of the Central Bank and Abdul Basit Turki Agency for "obelisk", "The bank has decided to open the door to all banks for window sell the currency from the beginning of next year."

Turki added, "This decision will reduce the effort on the citizen to go to currency outlets will reduce the momentum would also bring the principle of justice for all private banks wishing to deal selling the currency to citizens."

Turki pointed out that "the bank will receive applications from private banks as of next Wednesday."

And regulates the Iraqi Central Bank auction of five meetings weekly from Sunday to Thursday for the sale and purchase of foreign currency, and receive a cash commission on the sale and transfers of about 13 dinars per dollar

-

  • Upvote 1
Link to comment
Share on other sites

Ummm, that's not a good thing. I thought the plan was to de-dollarize Iraq in 2013.

If the Dinar is on par with the Dollar, there is no profit in exchanging them. Doesn't make sense. Why would and Iraqi lose money by exchanging his Dinar for a dollar if both were worth the same amount?

Edited by RVPleaseToday
Link to comment
Share on other sites

Ummm, that's not a good thing. I thought the plan was to de-dollarize Iraq in 2013.

If the Dinar is on par with the Dollar, there is no profit in exchanging them. Doesn't make sense. Why would and Iraqi lose money by exchanging his Dinar for a dollar if both were worth the same amount?

Exactly!! :huh:/> :mellow:/> I smell smoke! :unsure:

Edited by InItSince05
  • Upvote 2
Link to comment
Share on other sites

In another group, someone very wise (at least he's a wise guy) said this in response to this article:

Remember cash goes both ways. If they are going to de-dollarize, they need as many outlets as possible for people to sell their dollars back to the bank for Dinars. So if you "sell" Dollars, you 'buy' dollars

(PS - He would add a "yeah, baby!")

Edited by Deborah Layne
  • Upvote 5
Link to comment
Share on other sites

Machete, that's going the wrong way. They want the right to SELL the dollar.

My apologies if I read this wrong, but the way I understood it, the banks would be allowed to sell the dollar to the citizens of Iraq. The people of Iraq would trade in their dinar notes for US Dollars which would in turn be pulling the dinar off the streets. Then when they eventually come out with the new currency, the people of Iraq would then take their US Dollars and switch them once again for the new Iraqi dinar which would then take the US dollar off of the street. Once again, I apologize if I read this incorrectly or misunderstood it. Thanks.

  • Upvote 1
Link to comment
Share on other sites

Well, my issue is this. Why would they first flood the country with dollars, only to turn around and and try to get them out of country later? It would be very hard to do, especially at par, because the people would have to exchange twice. It more suggests, to me, that they are not planning to revalue "soon." Unfortunately.

Link to comment
Share on other sites

Hmmm... Maybe this is pointing to Kap's Theory of a Gradual Float. As long as the Dinar is worth less than the dollar, The Iraqi's will prefer the security of the Dollar. Then again, If the Central Bank were planning to RV they wouldn't be sharing that information with any of the other banks and would probably continue to appear to be conducting business as usual! Guess we'll have to wait and see if there are any other articles that come out confirming this or maybe we'll see that the implimentation of this also gets postponed to a Much Much later date!

Link to comment
Share on other sites

RVP :::You are right ... If street dealers are getting 1200 for the dollar , the banks want to break into that market .. They will buy at 1169 , sell at 1200 and pocket 31 dinar legally. The advantage of letting the banks do this is they will get a handle on where the money is thru teller receipts!

Also the economy IS expanding and money flow is increasing 10-15 % next year ( due to the larger budget) .. BUT they are not in a position to print more of the current dinar.. So too keep from slowing down the economy they will simply let the expansion be covered by the USD which costs them nothing.

This not smoke , has nothing to do with a potential RV ... Looks like just practical banking.

  • Upvote 1
Link to comment
Share on other sites

Well, my issue is this. Why would they first flood the country with dollars, only to turn around and and try to get them out of country later? It would be very hard to do, especially at par, because the people would have to exchange twice. It more suggests, to me, that they are not planning to revalue "soon." Unfortunately.

I completely agree with you.

Link to comment
Share on other sites

Unirod, I understand what you are saying; but, why would anyone in Iraq but an Iraqi want to pay a spread to buy USD?

The market value today is 1225.

CBI sells at 1166 +13 dinars

Thats a 46 dinar difference today.

Not sure what these private banks charge but looks like a gain to hold US dollars to me

  • Upvote 1
Link to comment
Share on other sites

I had to read this article again. It states that they (CBI) wish to slow the momentum of USD sales by allowing the private Banks to sell the USD instead of the citizen going to the currency dealers or outlets. This is the CBI's efferts to support the private Banks while controlling sales or the DEMAND for the USD. The people want USD because of it's strength. So at some point you would think these idiots(CBI)(GOI) will promote the Dinar by actually pulling the trigger and R/V.....IMO

By the way friends, I received my Warka interest payment right on time and I bet the CBI is full of Horse@#$!t when it threatend to shut down Warka!

  • Upvote 2
Link to comment
Share on other sites

Unirod, I understand what you are saying; but, why would anyone in Iraq but an Iraqi want to pay a spread to buy USD?

RVplease,

The citizen does not want to pay a spread. However, If there was more competition in the market with private banks participating, then this would drive the USD down therefore increasing the value of the Dinar. It would take less Dinar to buy USD. This is good for the citizen!

If the citizen could stay out of the currency dealers on the street corner that rip them off, then this is good for the citizen!

According to reports there are not enough Banks to serve the Iraqi population. So maybe citizens will walk an extra mile to exchange currency or do whatever with their banking needs, instead of patronizing the local currency hustlers!

I equate this delema to the new industry in our country of Check cashing outlets. Would a US citizen get a better deal cashing their check at these places or at the local National Bank? In our country people are forced to these Check cashing rip offs because they have no credit worthiness to have a bank account, or they are behind and are willing to be charged an absorbitant fee for such services.

The Iraqi's are in a different position. 1) They don't trust the Banks. 2) There are not enough accessible Banks for services.

IMO

  • Upvote 1
Link to comment
Share on other sites

I had to read this article again. It states that they (CBI) wish to slow the momentum of USD sales by allowing the private Banks to sell the USD instead of the citizen going to the currency dealers or outlets. This is the CBI's efferts to support the private Banks while controlling sales or the DEMAND for the USD. The people want USD because of it's strength. So at some point you would think these idiots(CBI)(GOI) will promote the Dinar by actually pulling the trigger and R/V.....IMO

By the way friends, I received my Warka interest payment right on time and I bet the CBI is full of Horse@#$!t when it threatend to shut down Warka!

Thats right. Receiving interest on time was a very good sign. If they were going to pull some sort of trigger at the end of Dec then interest wouldnt have been credited.

Its business as usual.

Iraq doesn't do "on time" anyway.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.


  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.