CBI Currency Auction - Wednesday, 10 April 2013

[ronscarpa]

Currency Auctions - Announcement No. (2353)

The latest daily currency auction was held in the Central Bank of Iraq on Wednesday, the 10-Apr-2013. The results were as follows:

DETAILS ---------- & ---------- NOTES

Number of banks 27
Auction price selling dinar / US$ 1166
Auction price buying dinar / US$ -----
Amount sold at auction price (US$) 186,438,000
Amount purchased at Auction price (US$) -----
Total offers for buying (US$) 186,438,000
Total offers for selling (US$) -----

Exchange rates
Dollar's exchange rates / in Baghdad markets

 

 

NOTE: There is no Currency Auction posted yet for Thursday, the 11th of April 2013 ... We continue to see the sale of USD to remove more IQD from the streets.  Time will tell when all is finally completed, but we continue to wait...!    - RON   

 

[gainesm]

Today is a bank/business holiday in Iraq if I understood a news article correctly - it said something about the holiday for the purpose of getting things ready for the early election.  However, I do not know if that was a verified story.

[sandstorm]

There is zero evidence of a retraction of m2. Cbis own site shows growth at 4.58%. Meaning more dinar than last.

the auctions are for liquidity and stability of the market. example...lets say the bank or erbil sells a million dollars for a billion dinar. they take the one billion dinar they collected from individuals and buy more dollars for tommorows economic needs.

so the cbi needs more dollars but has now one billion dinar from the bank of erbil. the cbi will buy dollars from the mof's oil revenues...giving the mof one billion dinar for the usd. its a cycle....its part of maintaining stability on a daily basis

So dinar comes off the street....and right back out by the mof funding the budget in dinars

off the streets.....right back on the streets.......then off the streets .....and right back on.

Why would a central bank want to remove all its local currency....it would be doomed and fail. this type of policy would deteriote the currency. The idea their removing dinar from all iraqis.....just to rv....which only benefits speculators. central banks form policies against speculation. the premise is flawed. the cbi said it already plans on replacing the currency.

[TQueezy]

Why would a central bank want to remove all its local currency....it would be doomed and fail. this type of policy would deteriote the currency. The idea their removing dinar from all iraqis.....just to rv....which only benefits speculators. central banks form policies against speculation. the premise is flawed. the cbi said it already plans on replacing the currency.

Right, exactly sandstorm, so why would you ever want to buy the Iraqi dinar?!

We keep telling you not to, or to sell whatever you may have and move onto other endeavors. You must be a glutton for punishment and humiliation. Please, for yours and all of our sakes, just leave and stop being concerned with the dinar!

[sandstorm]

Why would they burn up reserves to remove dinar? Why spend 50 billion to remove all dinar from iraq....rv to a buck to pay out 25 trillion remaining to foreigners.....just to then spend 150 million to reprint and issue a new currency. why?

[TQueezy]

Exactly!!! It's makes no sense. And that's why smart people like you would do well to leave this entire underworld of stupidity alone. Save yourself!

[sandstorm]

Right, exactly sandstorm, so why would you ever want to buy the Iraqi dinar?!

We keep telling you not to, or to sell whatever you may have and move onto other endeavors. You must be a glutton for punishment and humiliation. Please, for yours and all of our sakes, just leave and stop being concerned with the dinar!

tquezzy.....if you cant take an opinion or analysis of the current state of the dinar....then you need not read it....and need not inter ject. there are those who analyze the financials......and theres some who ignore all data and dream of a rv. these are not my stats they are the cbi. grow up...and put your emotional needs on standby.....were talking dinar

[Bored]

There is zero evidence of a retraction of m2. Cbis own site shows growth at 4.58%. Meaning more dinar than last.

the auctions are for liquidity and stability of the market. example...lets say the bank or erbil sells a million dollars for a billion dinar. they take the one billion dinar they collected from individuals and buy more dollars for tommorows economic needs.

so the cbi needs more dollars but has now one billion dinar from the bank of erbil. the cbi will buy dollars from the mof's oil revenues...giving the mof one billion dinar for the usd. its a cycle....its part of maintaining stability on a daily basisSo dinar comes off the street....and right back out by the mof funding the budget in dinars

off the streets.....right back on the streets.......then off the streets .....and right back on. Why would a central bank want to remove all its local currency....it would be doomed and fail. this type of policy would deteriote the currency. The idea their removing dinar from all iraqis.....just to rv....which only benefits speculators. central banks form policies against speculation. the premise is flawed. the cbi said it already plans on replacing the currency.

How does the dinars go from the MoF back onto the streets? Not saying your wrong, just wondering.

[sandstorm]

Exactly!!! It's makes no sense. And that's why smart people like you would do well to leave this entire underworld of stupidity alone. Save yourself!

the dinar can appreciate...i have no doubts. imo its very long term and subject to modest gains. Thats what i believe.

just because i dont think the rv is tommorow......doesnt mean i should leave. if its too disturbing to get down and talk about the cbis own stats......then ignore and move along. either contribute or give an opinion....or shut it. im tqlking about the dinar on a dinar forum......oh no

How does the dinars go from the MoF back onto the streets? Not saying your wrong, just wondering.

the cbi has to continually buy usd. once the cbi redeems the dinar...they use what was collecting and give those dinars to the mof for the budget and salaries...infrastrucutre...ect. this is how the cbi obtains dollars in the first placw. they buy the oil dollars and give out dinar. next thing you know the citizen is taking their paycheck in dinar. to the bank to buy usd. cycle repeats

Tquezzy......just because i think the auctions dont reduce dinar.....isnt reason to run me off.

come on....what do you want to hear? Should i of asked.......so i can make you happy

[TQueezy]

tquezzy.....if you cant take an opinion or analysis of the current state of the dinar....then you need not read it....and need not inter ject. there are those who analyze the financials......and theres some who ignore all data and dream of a rv. these are not my stats they are the cbi. grow up...and put your emotional needs on standby.....were talking dinar

The point of my obviously sarcastic "interjection", as you put it, was to indicate that you do little else than play devil's advocate and fill these threads with negative "opinions" of Iraqi news media (which is as untrustworthy as likely the CBI is). Instead of posing a neutral argument and including aspects of multiple perspectives, you side wholly with negativity. Try to emulate Darin or someone else who is willing to see that there is at least a modicum of potential for a major revaluation or appreciation of the Iraqi dinar.

[sandstorm]

How can the auctions reduce the dinar in circulation.....when the stats show otherwise?

Present an economic model that shows contractionary policy. id love to be a believer

The point of my obviously sarcastic "interjection", as you put it, was to indicate that you do little else than play devil's advocate and fill these threads with negative "opinions" of Iraqi news media (which is as untrustworthy as likely the CBI is). Instead of posing a neutral argument and including aspects of multiple perspectives, you side wholly with negativity. Try to emulate Darin or someone else who is willing to see that there is at least a modicum of potential for a major revaluation or appreciation of the Iraqi dinar.

if your solution is i shut up....because someone thinks a rv might not happen. did adam ban the use of statistics? Are we not allowed to analyze the cbis key financials.

I get it.....only post positive things. i cannot say iraq is corrupt. i cannot say there are assainations..i cant say the hcl is being blocked. i cant say ch7 may be extented. i get it.......go rv.

[TQueezy]

How about... prove with official MoF or CBI documents that the dinars they receive from auctions are immediately and/or indirectly or directly placed back in circulation. You have your theory or knowledge of how that's done, but can you prove it? I can't prove they're destroying bills or just removing them from circulation without updating their M2 figures, but how can you 100% trust them and their data? Don't you feel it's a little foolish to do that?

[sandstorm]

Im not frank, delta, tony breitling, stevei, ocrush, or poppy 3. If you want the ultimate positives....their taking members

How can the auctions reduce the dinar in circulation.....when the stats show otherwise?

Present an economic model that shows contractionary policy. id love to be a believerif your solution is i shut up....because someone thinks a rv might not happen. did adam ban the use of statistics? Are we not allowed to analyze the cbis key financials.

I get it.....only post positive things. i cannot say iraq is corrupt. i cannot say there are assainations..i cant say the hcl is being blocked. i cant say ch7 may be extented. i get it.......go rv.

it would more foolish to ignore it.

do you buy stocks and bonds without a prospectus? Do you buy a house....withoutresearching the analytical data? What about the audit by pricewaterhouse cooper? Isnt ch7 about TRANSPARENCY. No..couldnt be

Ignoring the statistics is exa tly what the pumpers want. it keeps the wool over your eyes. so lets not talk about it.

[TQueezy]

Not asking you to emulate a guru. I just don't understand why you insist on having a negative edge to every post you making, calling into question even the slightest hint of hope or positive thinking (even if those thoughts/posts can seem illogical sometimes). All I'm asking is for a little more sensitivity and neutrality in your posts, but obviously you may post however you'd like; I have no control or influence over that.

[gainesm]

Why would a central bank want to remove all its local currency....it would be doomed and fail. this type of policy would deteriote the currency. The idea their removing dinar from all iraqis.....just to rv....which only benefits speculators. central banks form policies against speculation. the premise is flawed. the cbi said it already plans on replacing the currency.

 

Reducing the amount of IQD in circulation actually accomplishes a number of things:

 

1. Helps set the stage for increased use of the smart cards - which in turn accomplishes a number of other good things

2. Sets the stage for a much reduced timeline, project cost, and impact for a redenomination, LOP, or RV

3. Allows more manageable control over the value of the IQD vs. USD for transactions inside Iraq

4. Reduces operating costs as it relates to the management of IQD circulation and storage

 

Admittedly, none of these is marker for a redenomination, LOP, or RV - but it is incorrect to think that reducing IQD in circulation would only be for the purpose of RVing.  This is clearly not the case.

 

Incidentally, a RV will not "only" benefit speculators.  Iraq itself would benefit immensely from a RV, provided they were able to manage the internal economic impacts wisely.  Basic economics theory dictates that a well-managed RV benefits the nation in question - while causing negative effects for their trading partners.  That is to say, a well-managed RV effort would raise the value of the IQD and therefore would make foreign business less expensive for Iraq (which is a massive benefit for them) while making it more expensive for their trading partners.  

[zigmeister]

Reducing the amount of IQD in circulation actually accomplishes a number of things:

 

1. Helps set the stage for increased use of the smart cards - which in turn accomplishes a number of other good things

2. Sets the stage for a much reduced timeline, project cost, and impact for a redenomination, LOP, or RV

3. Allows more manageable control over the value of the IQD vs. USD for transactions inside Iraq

4. Reduces operating costs as it relates to the management of IQD circulation and storage

 

Admittedly, none of these is marker for a redenomination, LOP, or RV - but it is incorrect to think that reducing IQD in circulation would only be for the purpose of RVing.  This is clearly not the case.

 

Incidentally, a RV will not "only" benefit speculators.  Iraq itself would benefit immensely from a RV, provided they were able to manage the internal economic impacts wisely.  Basic economics theory dictates that a well-managed RV benefits the nation in question - while causing negative effects for their trading partners.  That is to say, a well-managed RV effort would raise the value of the IQD and therefore would make foreign business less expensive for Iraq (which is a massive benefit for them) while making it more expensive for their trading partners.  

Exactly more reasons to RV!  In many countries when they RD'd they had to do it more than once.  Some gave up and took the dollar on.  I think for Iraq the dependency of the dollar by the people would indeed be futile in the end game.

[sandstorm]

Exactly more reasons to RV!  In many countries when they RD'd they had to do it more than once.  Some gave up and took the dollar on.  I think for Iraq the dependency of the dollar by the people would indeed be futile in the end game.

a smart card doesnt reduce dinar. whether phusical cash or electronic.....a dinar is a dinar. and would be beneficial during a rd...to speed up currency replacement

[sandstorm]

So lets say they remove all dinar.....so they spend approx 70billion dollars. the cost of storage would be pennies compared to the cost of buying and removing dinar.

so the reserves are down to a few billion and no dinar is in iraq. they accomplishd spending billions, there is now no local currency....so more and more vendors refuse to accept it. so what then...they pay 150 million for a new currency....rv to a buck and pay out trillion just to foreign speculators holding dinar.

iraq growing its m2, has helped createrecord amount of foreign reserves. they are making a killing...and stealing gold and money at the time. Shabs is gone.......malikis man gives him free rein on whatever he wants from the cbi. why stop there gravy train?

Ten tonnes of gold stolen from the cbi....and somehow there is no bad news. Shabs says he was replaced because he wouldnt let maliki borrow..so he put in his main man. they are loving collecting all this usd by selling off their toilet paper currency. iran needs usd...syria needs usd. imo they will keepselling their tp as long as their buddies need the dollar.

iraq wanting to sue the u.s. for the invasion. the second we release ch7, they will turn their back on the u.s.

I see hell breaking loose...with the looting and malikis hand in the cookie jar.

most everyone else.....think its a secretive move to apply the rv of the dinar

If someone thinks everything is happeningbecause of the rv of the dinar, they block all the bad news and data and ride it off as smoke and mirrors.

but if you quit thinking abouta rv for asecond.......you see some major red flags. so it seems to me

The removal of shabibi was the eye opener for me. thats when i knew imo...the independence and if there was a plan had been halted. instead they falsely accuse and start up withthe corruption. same for muhamed saleh.

Fires at the cbi. gold stolen. top 2 at the cbi with arrest warrants. yeah. i see problems. sorry if thats negative

[rightsonword]

I seem to experience deja vu each time I read a thread with select members posting on it . . .



At some point, you just gotta let it go, let it go, let it go . . . .

[sandstorm]

I seem to experience deja vu each time I read a thread with select members posting on it . . .

At some point, you just gotta let it go, let it go, let it go . . . .

let what go? No one is talking lop. Talking the internal actions and cycle of curreny auctions. If youd like to join inplease do. no reason to be direspectful and make snarky comments. your welcome to join or welcome to leave.

[gainesm]

so the reserves are down to a few billion and no dinar is in iraq. they accomplishd spending billions, there is now no local currency....so more and more vendors refuse to accept it. so what then...they pay 150 million for a new currency....rv to a buck and pay out trillion just to foreign speculators holding dinar.

 

 

No one said they were removing all Dinar from circulation, just that they are reducing it.  And, logically, it would likely only be the large bills they focused upon for circulation reduction.  Doing so does not make the Dinar useless nor would it prompt vendors to stop accepting it - to the contrary, the conduction of business would be facilitated by increased adoption of the use of smart cards.  The use of smart cards for more and more transactions will happen whether or not they are reducing IQD circulation.

 

 

Ten tonnes of gold stolen from the cbi....and somehow there is no bad news.

 

I believe that rumor was proven false and cited errors in the statistics that led to the accusation.  I'm unsure whether the theft was actually officially verified, or not, based on the follow-up reporting.

 

 

If someone thinks everything is happeningbecause of the rv of the dinar, they block all the bad news and data and ride it off as smoke and mirrors.

 

I agree.  It is equally illogical to rule out, in addition to other reasons, that these are steps toward a legitimate RV.  The question is not one of possibility, it is one of probability.  What is more likely - that Iraq is attempting to reduce the circulation of IQD to make the USD more reliable as currency, or that they are doing so with the intent of securing the Dinar (whether the current or future denominations) with a more trusted in value on the street? 

 

 

but if you quit thinking abouta rv for asecond.......you see some major red flags. so it seems to me 

 

To the contrary - it is because of the RV that I see the red flags.  I cannot fathom any nation, especially Iraq, would want to rush to a RV.  Because I believe this, with all my heart, I look at the way Iraq is progressing and see the red flags that could impede or facilitate a successful RV.  Where some see actions inconsistent with an immediate RV, others see actions that "must" be only for the RV.  Personally, I see actions that are mutli-purposed - Iraq is taking actions to meet immediate short-term needs without making it impossible to RV in the future.

 

So, while I agree that people are better off if they apply the brakes to their interpretations, I feel it is equally illogical to simply write off the possibility of something significant.  Just because some aren't seeing specific evidence of impending RV does not mean Iraq isn't managing toward that goal.

 

The absence of evidence is not the evidence of absence.  

[sandstorm]

there is an ignore button u know. typical........side on the sidelines.....whining about someone talking aboutthe dinar. noway....people talking dinar on a dinar forum.

isnt everything a repeat to you by now?

No one said they were removing all Dinar from circulation, just that they are reducing it.  And, logically, it would likely only be the large bills they focused upon for circulation reduction.  Doing so does not make the Dinar useless nor would it prompt vendors to stop accepting it - to the contrary, being able to conduct business would be facilitated by increased adoption of the use of smart cards.  The use of smart cards for more and more transactions will happen whether or not they are reducing IQD circulation.

 

 

I believe that rumor was proven false and cited errors in the statistics that led to the accusation.  I'm unsure whether the theft was actually officially verified or not based on the follow-up reporting.

 

 

I agree.  It is equally illogical to rule out that, in addition to other reasons, that these are steps toward a legitimate RV.  The question is not one of possibility, it is one of probability.  What is more likely - that Iraq is attempting to reduce the circulation of IQD to make the USD more reliable as currency, or that they are doing so with the intent of securing the Dinar (whether the current or future denominations) more trusted in value on the street? 

 

 

To the contrary - it is because of the RV that I see the red flags.  I cannot fathom any nation, especially Iraq, would want to rush to a RV.  Because I believe this, with all my heart, I look at the way Iraq is progressing and see the red flags that could impede a successful RV.  Where some see actions inconsistent with RV, others see actions that "must" be for the RV.  Personally, I see actions that are mutli-purposed - Iraq is taking actions to meet immediate short-term needs without making it impossible to RV in the future.

 

So, while I agree that people are better off if they apply the brakes to their interpretations, I feel it is equally illogical to simply write off the possibility of something significant.  Just because some aren't seeing specific evidence of impending RV does not mean Iraq isn't managing toward that goal.

 

The absence of evidence is not the evidence of absence.

i respect your opinion. thanksf for making a logical on

Topic opinion......+1

[zul]

There is zero evidence of a retraction of m2. Cbis own site shows growth at 4.58%. Meaning more dinar than last.

 

 

M2 is made up currency issued by CBI, USD in Iraqi banks and credit created by commercial banks.

The 4.5% growth could easily be credit growth or dollar deposit from their oil revenues.

[TQueezy]

there is an ignore button u know. typical........side on the sidelines.....whining about someone talking aboutthe dinar. noway....people talking dinar on a dinar forum.

isnt everything a repeat to you by now? i respect your opinion. thanksf for making a logical onTopic opinion......+1

You say you respect his opinion and that it's valid, but you immediately post negative feedback to others who think articles indicate progress towards an RV. That's all the other people are doing too. Pick one. I have brought up some of his same points in the past. And plus, how do you think his points are logical if none of these articles or data you look at make you think an RV is possible? That's very contradictory. Do you believe the actions of the CBI could indicate they are safeguarding an option to RG or appreciate their currency, yes or no? If you do think it's possible, then why do you only post negatives and never hopefulness or positives?

[gainesm]

I think it's important to have people on both sides of the fence - to be able to point out things that might be missed in the hunt for information and perspective.  From time to time any of us might seem to be too far to the left or right on this, and more often than not I think trying to point out a fallacy or a reason for caution can be taken as a negative mindset when it isn't mean to be one.

 

The closer we get to RV, the more cautious I expect I will be - especially after the roller coaster this whole ride has been to date.  There are some people, however, who will always see a positive post as too optimistic and a cautious as one as too negative.  Rather than encourage only one side, I think it does us all good to encourage both so we can remain informed in our collective cautious optimism.