Why has the cash portion of the currency auctions risen since Shabs left?

[SocalDinar]

The cash portion of the auctions have risen substantially since Gov Shabibi's arrest warrant was issued.

The overall auction amounts have also gone down.

It's been averaging about 125 million a week now compared to a year ago when it was under 80 Million.

Overall auctions have been considerably less than when Shabs was in charge.

 

Any takes on this trend.? Its obvious that something has changed.

Are they dumping dinars on the street in favor of the dollar? Market value is down a bit.

Are the new anti money laundering policies affecting the auctions.

 

Why??

 

Could they actually be reducing the money supply right in plain site?

 

Where are the replacement Notes for the damaged currency promised by Saleh in November

 

 

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

 

All comments Good or bad appreciated

 

 

[sandfly]

PEOPLE LOST FAITH

[SocalDinar]

PEOPLE LOST FAITH

Thanks Sandfly.

You think because  of Shabs removal?  How educated are they. We obviously know more than the average citizen does in Iraq.

You could ask  the average citizen in the US who Ben  Bernanke is and be surprised how many have no idea who he is and what he does.

 

Why have they lost faith?

[sandstorm]

Its my understanding the transaction volume is the amount of usd sold to the banks to cover accounts on imports daily. the cash portion is thusly cash. The cbi buys dinar from the participating banks. I dont see anything trending thats an eye opener.

are they dumping dinar on the streets? Well, not specifically to your question on the auction, but at the end of the cycle, they continue to add m2 growth. so yes more dinar is out there than before....cbi website shows 6.03% m2growth ..year over year

I think keeping the auctions low helps to maintain a stable balance of usd. i think i read the basic demand is approx. 150 million a day.

Could they be reducing the supply in plain sight? This is a question ive spent time on myself. to have any idea we have to look at the cycle. first....where did the cbi get the dollars in the first place? Well they sell off dinar..for reserves...and they also give the mof dinars in exchange from oil revenues....which are in dollars. so here his the first hurdle. the cbi had to put out dinar to ever have dollars. thats why there is this ever neutralizing, equal sum game. So i dont believe contractionary policy has set in yet.

where are the replacement notes? They should be replacing as needed. they can do that without a press release.

jmo....

[SocalDinar]

Thanks for your input  Sandstorm,

The cash portion has been substantially higher since Shabs left. Last year this time it was about 7% of total auctions for the week and this week to date its at 35%. Last year this time it was about 80 Million per week Cash and this week its at $105 million with two auctions to go.

These numbers have been going up since Sept last year while overall auction amounts are down.

 

M2 growth shown is from November 2012 I think?

Edited March 12, 2013 by SocalDinar

[Rammar]

Thanks for your input  Sandstorm,

The cash portion has been substantially higher since Shabs left. Last year this time it was about 7% of total auctions for the week and this week to date its at 35%. Last year this time it was about 80 Million per week Cash and this week its at $105 million with two auctions to go.

These numbers have been going up since Sept last year while overall auction amounts are down.

 

M2 growth shown is from November 2012 I think?

last year IQD team said maliki wuz the bad guy + now shabibi is bad guy = or does it not matter coz they only need chp 7 + HCL released ?