ronscarpa Posted October 6, 2013 Report Share Posted October 6, 2013 Currency Auctions Announcement No. (2496) The latest daily currency auction was held in the Central Bank of Iraq on Sunday, the 6th-Oct-2013 . The results were as follows: DETAILS ------------------- & ----------------- NOTES Number of banks ----------------------------- 18 Auction price selling dinar / US$ ---------- 1166 Auction price buying dinar / US$ ---------- ----- Amount sold at auction price (US$) ------- 174,777,000 Amount purchased at Auction price (US$) ----- Total offers for buying (US$) ---------------- 174,777,000 Total offers for selling (US$) ---------------- ----- Exchange rates Dollar's exchange rates / in Baghdad markets 3 1 Link to comment Share on other sites More sharing options...
Dinar Buddy Posted October 6, 2013 Report Share Posted October 6, 2013 The currency exchange is primarily oil sales to other countries regionally. It is not currency be bought or sold affect the rate. 2 9 Link to comment Share on other sites More sharing options...
dontlop Posted October 6, 2013 Report Share Posted October 6, 2013 The currency exchange is primarily oil sales to other countries regionally. It is not currency be bought or sold affect the rate. I agree the oil revenues are paid in petro dollars and converted into Iraqi dinar which stabilizes the dinar exchange rate at 1166 Some of those dollars they sell at auction are used to import goods externally from other country's Some remain on the streets of Iraq The way to figure out how many stay in Iraq is to look at Iraqis trade surplus From 2004 thru 2012 Iraq collected 156 billion dollars on the streets that did not leave Iraq Most likely another 40 billion will be added to that in 2013 Close to 200 billion dollars which would be worth around 225 trillion dinars at 1166 rate But cbi only shows 80 trillion m2 money supply 145 trillion dinars worth less than they actually have This is why they said the dinar can be covered at two and a half times or e change rate of 466 dinar to one dollar I believe the Iraqi govt knows this and will put policies in place eventually draw in those dollars to raise the rate of the dinar Hopefully by the end of this year for next years budget The Iraqi streets are the secret foriegn reserves ready to be de-dollarized soon 6 Link to comment Share on other sites More sharing options...
Bobbydee Posted October 6, 2013 Report Share Posted October 6, 2013 Thanks Ron for the post. I never understood these auctions. Don't understand what's being sold. ( dinars or dollars) If the US dollar is being bought at these auctions with dinar, it would seem by now that most of the 000s would have pulled off the streets. Just saying. Been invested since 2009 and these auctions have been going on a long time. So Dinar Buddy's statement seems to make sense. Blessings to All Great explanation Dontlop. Thanks 1 Link to comment Share on other sites More sharing options...
waterman13 Posted October 6, 2013 Report Share Posted October 6, 2013 Thanks Ron for the post. I never understood these auctions. Don't understand what's being sold. ( dinars or dollars) If the US dollar is being bought at these auctions with dinar, it would seem by now that most of the 000s would have pulled off the streets. Just saying. Been invested since 2009 and these auctions have been going on a long time. So Dinar Buddy's statement seems to make sense. Blessings to All Great explanation Dontlop. Thanks Dollars are being bought by the banks to exchange for Dinars, the economy is run in Dollars not Dinars! DB is confused. Dontlop does explain it pretty well. Can't wait for the de-Dollarization of IRAQ! Go IRAQ! GO! Wm13 4 Link to comment Share on other sites More sharing options...
dontlop Posted October 6, 2013 Report Share Posted October 6, 2013 Lopsters used to say Iraq is running deficits because they import more than they take in which is not true Iraq has surpluses since 2005 with trade surpluses of 70 billion just in 2011and 2012 Which means Iraq is building up reserve dollars on the streets. That are not deposited at the cbi in those foriegn reserves Here's the link to show the trade surpluses in Iraq http://www.tradingeconomics.com/iraq/balance-of-trade Iraq recorded a trade surplus of 24478.10 USD Million in 2012. Balance of Trade in Iraq is reported by the Central Bank of Iraq. From 1988 until 2012, Iraq Balance of Trade averaged 8690.6 USD Million reaching an all time high of 39048.0 USD Million in December of 2011 and a record low of -3492.3 USD Million in December of 2004. Iraq has been recording trade surpluses since 2005 due to a rise in the shipments of oil (99 percent of total exports). Main imports are: machinery and transport equipment; manufactured articles and mineral fuels. Main trading partners are: United States (25 percent of total exports and 6 percent of imports) and China (12 percent of exports and 14 percent of imports). Others include: Syria, India and South Korea. This page contains - Iraq Balance of Trade - actual values, historical data, forecast, chart, statistics, economic calendar and news. 2013-10-06 6 Link to comment Share on other sites More sharing options...
dontlop Posted October 6, 2013 Report Share Posted October 6, 2013 Some believe all the money Iraq has is what sits in the cbi foriegn reserves Pitiful closed minded lobsters will never know the truth Link to comment Share on other sites More sharing options...
dontlop Posted October 6, 2013 Report Share Posted October 6, 2013 (edited) One day Iraq may just drop the zeros and raise the price of a dinar to 4 dollars and collect those dollars from the street and watch the reserves raise to around 300 billion dollars while the Iraqis enjoy the 4 dollar purchasing power of the dinar Edited October 6, 2013 by dontlop 2 Link to comment Share on other sites More sharing options...
Dinar Buddy Posted October 6, 2013 Report Share Posted October 6, 2013 Let me restate... The countries buy OIL with USD's. and deposited into the CBI, which then transfers them to about 18 banks to reduce risk. The country that then buy oil get the oil... NO IQDs. The CBI then pulls off the IQD from their inventory, as they GOI own the oil. They then repay all debts, IMF, and everyone else in USD's. Last, the CBI has a spread of 1166 to 1164, that is their profit. The CBI auctions a majority for energy auctions and portion for currency. Here is the link folks referencing about the pulling of the IQD off the market. Relook at this website. IT is bogus, not author, no contact info for the website. This site creates its own media. Plus they sell IQD... no news website would every sell or promote adds to sell the IQD. http://www.iraq-businessnews.com/2011/04/14/iraq-central-bank-to-remove-3-zeroes-from-dinar/ 2 1 Link to comment Share on other sites More sharing options...
dontlop Posted October 6, 2013 Report Share Posted October 6, 2013 I'd say they are deposited into an Iraqi govt account at the cbi The cbi manages these funds for the govt of Iraq The govt of Iraq needs to convert those dollars into dinar to make govt pay rolls The cbi has auctions selling those dollars for dinars The dinars are transferred to the streets thru pay checks for govt contract work and govt employee pay rolls The dinar are used to buy goods and services in Iraq The merchants need dollars to by products from external sources outside of irAqi borders So they go to the banks with those dinars collected from their customers and they buy dollars off the banks to buy more products The dinars collected by the banks are used to buy more dollars in the next days auction at the cbi to buy dollars received by thx I from the oil ministry and or ministry of finance This process goes on every day But they have been expierrncing. Trade surpluses for the last 8 years so the dollars on the street and in the govt accounts are accumulating surpluses Only thing they can do is increase the dinar value and they have been holding off for some reason that's normal to keep value down in the rebuilding stages of a war torn nation It seems to be artificially low right now When this zero deletion takes place hopefully they will add to the dinar exchange rate and make it legitimate 6 Link to comment Share on other sites More sharing options...
ronscarpa Posted October 7, 2013 Author Report Share Posted October 7, 2013 Thanks for the many good responses and explanations DontLop (+s) 2 Link to comment Share on other sites More sharing options...
dontlop Posted October 7, 2013 Report Share Posted October 7, 2013 No problem thanks for posting these all the time Link to comment Share on other sites More sharing options...
dontlop Posted October 7, 2013 Report Share Posted October 7, 2013 Some believe all the money Iraq has is what sits in the cbi foriegn reservesPitiful closed minded lobsters will never know the truth Only the dinar need to be backed by reserves The dollars on the street don't need to be backed by reserves that's why you don't see them on the m2 its not Iraqi currency it us currency 1 Link to comment Share on other sites More sharing options...
sandfly Posted October 7, 2013 Report Share Posted October 7, 2013 THANKS Link to comment Share on other sites More sharing options...
dontlop Posted October 7, 2013 Report Share Posted October 7, 2013 Come on keep don't cha want to destroy this too 1 Link to comment Share on other sites More sharing options...
George Hayduke Posted October 7, 2013 Report Share Posted October 7, 2013 The Iraqi streets are the secret foriegn reserves ready to be de-dollarized soon Yup. Link to comment Share on other sites More sharing options...
SocalDinar Posted October 7, 2013 Report Share Posted October 7, 2013 The currency exchange is primarily oil sales to other countries regionally. It is not currency be bought or sold affect the rate. Todays auction had 87,600 MILLION USDs In cash. Are you saying that some countries are transporting that kind of currency daily to the CBI. for oil ? I don't think so. Link to comment Share on other sites More sharing options...
rockfl9 Posted October 7, 2013 Report Share Posted October 7, 2013 Come on keep don't cha want to destroy this tooNo Dontlop you are correct. You are learning. Key points you make. The GOI does have a surplus of dollars. It only offers the amount necessary to collect enough dinar to cover incountry expenses. The rest it keeps in dollars Probably in US and UK banks. It pays external debts in those dollars. The USD in Iraq does not need to be covered by CBI reserves. The USD is not a liability to the CBI BUT The one place where you may be mistaken is to believe that the GOI surplus would be used directly to support an increase in the value of the dinar. It doesn't. Only the CBI reserves could do that. Todays auction had 87,600 MILLION USDs In cash. Are you saying that some countries are transporting that kind of currency daily to the CBI. for oil ? I don't think so.They are electronic, bank to bank transfers.. No cash goes into Iraq , unless the CBI buys it from the foreign bank and pays for it to be shipped. Link to comment Share on other sites More sharing options...
sandstorm Posted October 7, 2013 Report Share Posted October 7, 2013 No Dontlop you are correct. You are learning.Key points you make.The GOI does have a surplus of dollars. It only offers the amount necessary to collect enough dinar to cover incountry expenses. The rest it keeps in dollars Probably in US and UK banks. It pays external debts in those dollars.The USD in Iraq does not need to be covered by CBI reserves. The USD is not a liability to the CBIBUTThe one place where you may be mistaken is to believe that the GOI surplus would be used directly to support an increase in the value of the dinar. It doesn't. Only the CBI reserves could do that. They are electronic, bank to bank transfers.. No cash goes into Iraq , unless the CBI buys it from the foreign bank and pays for it to be shipped.exactly. iraqs external debt is substantial. thusly why they beg for protection from the us. the surplus may be used for many reasons, but to think its for revaluing a dinar no iraqi wants, is very assumptuousdontlop, if their was billions of surplus on the streets, the price of the dollar would fall at market. instead we seehigh prices and alwas high demand. doesnt bode well for your theory despite the surplus, through partial dollarization, the central bank has yielded all power over the money supply. its an economical fact, which can be verified by looking through the statistics. the idea central banks are deceptive liars and can secretly do anything is not true. so why you my think its great for usd to be in surplus on the streets, dollarization is the biggest problem in this speculation. Link to comment Share on other sites More sharing options...
sandstorm Posted October 7, 2013 Report Share Posted October 7, 2013 that has resulted in m2 along with currency in circulation, growing more and more every singe day for the last decade. iraq seems very content in building foreignreserves through this currency. then just replacing it after they pimp it for all its worth. Link to comment Share on other sites More sharing options...
rockfl9 Posted October 7, 2013 Report Share Posted October 7, 2013 that has resulted in m2 along with currency in circulation, growing more and more every singe day for the last decade. iraq seems very content in building foreignreserves through this currency. then just replacing it after they pimp it for all its worth. Right! The current CBI Needed to support a growing economy but didn't want to go to the expense to print more of its own currency thus it imports USD. But now it lost control. It cannot know where and how much USD is in country. Import/export statistics are diluted... I cannot think of any way they can de-dollarize the country. Link to comment Share on other sites More sharing options...
Rasica Posted October 20, 2013 Report Share Posted October 20, 2013 (edited) 2/3 of the globe uses the USD for oil transactions and keeps surpluses of it on hand for oil transactions. This is known as the petrodollar and there is nothing really one can read from this into raising the IQD value. The 83 trillion figure is actually 'digital circulation' but M2 is addressed as 'money supply' which is a misnomer per se as M0 'supply' is the real physical supply not the M2. These two terms NEED to be understood differently, as many sources mingle these terms and mis the point of the high M2 {circulation 'digital'} as being essentially future debt. As physical holders of M0 IQD the true 'supply', are nevertheless treated quit differently from the M1 Fractional and M2 Increased fractional {the overall physical 'supply' & fractional digital 'circulation'}. The Rothschild Federal Reserve jump started the physical IQD giving it a USD value by purchasing X amount of IQD. The country has been operating on this basis 'tight monetary policy' ever since, with an artificial value which has kept its inflation extremely low as of 2013. Thus, this is the real purpose of keeping the value below its real GNP/GDP. Since Iraq has been building their infrastructure, purchasing gold and exporting oil and other goods. One must ask then, if the IQD is only 1166, how/why does the M2 get so high while Iraq in 2008 has been practicing a tight monetary policy and of repurchasing M0 physical currency with their surplus off the 'open market place'? Its based upon 'future promises of payment digitally' aka; 'derivative digital paper'. Will the 83T M2 (about $71 Billion USD) be put into the formula to derive the 'release value' of the IQD to the GDP/GNP when it happens? Keynesian economics allows them to use the fudge factor of 'future values'. So in reality M2 may not be used, which is contrary to our way of thinking in the U.S. Remember in 2008, Iraq had an oil windfall of $80 Billion for just that year alone. So in reality, even the 83 T @ 1166 could be zero'd out in less than a year if the oil prices spike. Well if there was really 83 Trillion 'physical IQD notes out in the market place', the loppers would have a more substantial argument to strike three zeros and print a replacement currency absent the zeros. The reality however is quit the opposite, there is very little 'physical supply' of IQD in the market place including the investors. Inflation is at a very low single digit, the IQD is not even released to a GDP/GNP to even consider a lop argument, so M2 (digital circulation) doesn't even come close to being a consideration in the physical IQD argument now. LOP arguments only work with 'physical currency supply'. Iraq beginning in 2008 spent up to $1.5 Billion of their surplus per month removing the 'physical supply' from the market place. This was published in The New York Times. At that rate, it would have taken only about + - 18 months to even zero out the M2 Fractional at the 2008 level. You simply cannot turn M2 Fractional into M0 physical. I would think by now a working balance has been achieved between supply & fractional and thus releasing the IQD to the GDP/GNP is quit doable. But there is the political and one can only guess whats up their sleeve! Here's a good video on M0 supply, M1 Fractional, & M2 Fractional. All this is just my best guess as they can simply do anything they want. But how much will the citizens stand for, how much longer will they allow outside forces to continue the chaos in their country? I think the Petrodollar is nearing its end. Just My Opinion. Edited October 20, 2013 by Rasica 10 Link to comment Share on other sites More sharing options...
staunch Posted October 20, 2013 Report Share Posted October 20, 2013 Nice post rasica. I'm not smart enough to add anything more to that. I am however surprised no one else has. 1 Link to comment Share on other sites More sharing options...
ronscarpa Posted October 20, 2013 Author Report Share Posted October 20, 2013 Good post Rasica (+)...! I'm going to repost it in "Opinions on the Iraqi Dinar", because I feel everyone should read it and watch the video...! 3 Link to comment Share on other sites More sharing options...
TQueezy Posted October 20, 2013 Report Share Posted October 20, 2013 What's that smell? Is it… boiling LOPster tail?! Omg yes!!! Link to comment Share on other sites More sharing options...
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