Markinsa Posted December 31, 2012 Report Share Posted December 31, 2012 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 - 1 Link to comment Share on other sites More sharing options...
RVPleaseToday Posted December 31, 2012 Report Share Posted December 31, 2012 (edited) 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 December 31, 2012 by RVPleaseToday Link to comment Share on other sites More sharing options...
jeepguy Posted December 31, 2012 Report Share Posted December 31, 2012 looks like handling the u.s. dollar pays off well !! mmmm wonder why dinar isn`t moving could be ,,, it is worth-a - lot less than dollar now, maybe the currency group of iraq will look at these post and get the idea , ?? could happen Link to comment Share on other sites More sharing options...
InItSince05 Posted December 31, 2012 Report Share Posted December 31, 2012 (edited) 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! Edited December 31, 2012 by InItSince05 2 Link to comment Share on other sites More sharing options...
RVPleaseToday Posted December 31, 2012 Report Share Posted December 31, 2012 InIt, the problem is this doesn't read like smoke. It reads like the commercial banks want to get in on the profits from exchanging Dinar for Dollars. And that doesn't fit into the RV picture at all. Link to comment Share on other sites More sharing options...
Deborah Layne Posted December 31, 2012 Report Share Posted December 31, 2012 (edited) 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 December 31, 2012 by Deborah Layne 5 Link to comment Share on other sites More sharing options...
RVPleaseToday Posted December 31, 2012 Report Share Posted December 31, 2012 (edited) Deborah, that makes sense if you are one of us, outside the country. It makes NO sense within the country. Edited December 31, 2012 by RVPleaseToday Link to comment Share on other sites More sharing options...
Deborah Layne Posted December 31, 2012 Report Share Posted December 31, 2012 Deborah, that makes sense if you are one of us, outside the country. It makes NO sense within the country. Good point. I'm going to guess that this is just a strange translation with a bit of misunderstanding mixed in. Link to comment Share on other sites More sharing options...
endeavor1 Posted December 31, 2012 Report Share Posted December 31, 2012 Maybe they still need to collect the higher denoms. 1 Link to comment Share on other sites More sharing options...
Machete Monk Posted December 31, 2012 Report Share Posted December 31, 2012 Maybe they are looking for another way to pull more larger notes out of circulation. People trade their dinar for dollars, then when enough is pulled in, they move toward de-dollarizing. JMHO. Link to comment Share on other sites More sharing options...
RVPleaseToday Posted December 31, 2012 Report Share Posted December 31, 2012 Machete, that's going the wrong way. They want the right to SELL the dollar. Link to comment Share on other sites More sharing options...
Machete Monk Posted December 31, 2012 Report Share Posted December 31, 2012 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. 1 Link to comment Share on other sites More sharing options...
RVPleaseToday Posted December 31, 2012 Report Share Posted December 31, 2012 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 More sharing options...
unirod Posted December 31, 2012 Report Share Posted December 31, 2012 If Banks intend to facilitate Internationally, they must be able to "sell" and "buy" like any real bank! Sell and buy USD 4 Link to comment Share on other sites More sharing options...
Joker017 Posted December 31, 2012 Report Share Posted December 31, 2012 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 More sharing options...
RVPleaseToday Posted December 31, 2012 Report Share Posted December 31, 2012 (edited) Unirod, I understand what you are saying; but, why would anyone in Iraq but an Iraqi want to pay a spread to buy USD? Edited December 31, 2012 by RVPleaseToday Link to comment Share on other sites More sharing options...
SPOTLIGHT Posted December 31, 2012 Report Share Posted December 31, 2012 What!!! are you serious another year off waiting.This shyte is a headache someone call me if this ever happens. Link to comment Share on other sites More sharing options...
rockfl9 Posted December 31, 2012 Report Share Posted December 31, 2012 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. 1 Link to comment Share on other sites More sharing options...
Machete Monk Posted December 31, 2012 Report Share Posted December 31, 2012 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 More sharing options...
SocalDinar Posted December 31, 2012 Report Share Posted December 31, 2012 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 1 Link to comment Share on other sites More sharing options...
unirod Posted January 1, 2013 Report Share Posted January 1, 2013 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! 2 Link to comment Share on other sites More sharing options...
unirod Posted January 1, 2013 Report Share Posted January 1, 2013 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 1 Link to comment Share on other sites More sharing options...
Alexyn1006 Posted January 1, 2013 Report Share Posted January 1, 2013 There is perhaps some more light shed on this article over at BL's site, for anyone that's interested. Link to comment Share on other sites More sharing options...
Goodlife Posted January 1, 2013 Report Share Posted January 1, 2013 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 More sharing options...
lechesuerte Posted January 1, 2013 Report Share Posted January 1, 2013 Do not forget that oil will always be sold in dollars as long as the US is in charge. There already have been many wars due to this fact. Link to comment Share on other sites More sharing options...
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