New CBI announcement 10/08/2013

[yota691]

News and Announcements

 

 

• (Foreign currency auction system) for the purpose of starting the actual work on the currency auction system has been directed seven of the registration of actual data banks (cash / bank) and sent electronically to the Central Bank 
  08/10/2013

No Copy or Paste...

[sandfly]

THANKS

[yota691]

Any luck anybody getting this announcement translated..on cell....here an article that I might believe to be associated with...First paragraph really, really, stands out...and it seems IMO the CBI is taken steps to working with specific banks....might be totally wrong...hmmm...Stability, Fraud Prevention....

Baghdad (news) / report / Hussein Faleh / .. Despite the appeal to some members of the Finance Committee and parliamentary bodies the country's economic isolation of the banking sector by the Central Bank through the enactment of a special allow the establishment of a supreme body an independent banking sector in the country, so that the central bank full-time work to support and stabilize the exchange rate of the dinar against the dollar, but that the number of bankers have expressed their rejection of this proposal and calling it harmful to the banking sector and market activity, he would lose control over the work of banks and makes it run as you like without the presence of sergeant or Haseeb. and confirmed their talk (of the Agency news) that the body which will be subject to محاصصات partisan and sectarian and will be managed by the people, not professionals which ستربك work of banks and make the economy is moving towards the unknown. executive director of the Association of private banks Abdul Aziz Hassoun, said: You can not isolate the banking sector by the central bank in any way because banks are permitted itself by the central bank operates under the supervision and monitoring, there is no reason to move away from one another. said Hassoun (of the Agency news): that the proposal, which goes towards the establishment of a supreme body to monitor the work of banks will not solve the problems of the Iraqi banking sector, saying there are many problems afflicting the sector and need enough time to consider them.pointed to: that the Iraqi banks and civil particular they are not deficient work, but work as requested, including the central bank and according to the instructions and regulations imposed on them. explained: that local banks have evolved a lot and working according to technological modern and now has external relations, and its fully consistent with the work of the central bank there is no need to isolate this sector by the Central Bank of Iraq. either banking expert wholesome Abbou has warned: from resorting to a proposed isolating the banking sector by the Central Bank, stressing that it would disrupt the work of banks and impair the activity of the domestic market and thus harm the national economy in general. He said (of the Agency news): that this proposal does not hurt the interests of the economy, not even sector banks, that will make a floundering job banks without having control of the centralized control it, pointing out that the body that will be established, they could not resist what is going on banking and financial activities in country. added: that the work of the central bank is monitoring the performance of banks and ensure the depositors' money which, through continuous monitoring of the operation of which, in addition to policy-making and public interest and the nature of the credit and give the value of the reserves compulsory. explained: there are bodies such as the Federation of Iraqi banks and bodies civil society organizations, is working to collect opinion and supplement the common policies of the banks studies to develop their work but they are not the owner's decision banks. while Vice President of the Finance Committee MP / coalition of Kurdish blocs / Ahmed Faizullah, he believes: that it is necessary to work towards isolating the banking sector for Central Bank through the creation of a special body dealing with banks for the purpose of organizing its work and development. said Faizullah (of the Agency news): The Central Bank of Iraq did not achieve the desired objectives in the organization, control and develop the work of the Iraqi banking sector because of concern the monetary policy of the country, and how to support price stability Iraqi dinar exchange. said: that most of the developed countries, including the United States have a financial center is called the central bank Fed Federal consists of 12 center spread over a number of U.S. mission control and supervision of the work of banks in those states and regions, so as to facilitate the work of banks and financial transfers. He explained: that in the event a center or a specialized job banks be linked to the work of the central bank and directly, and that's what makes necessary urgent to isolate the Iraqi banking sector by the Central Bank after the establishment of an independent private banks interested in banks and is working to develop. , it demanded that the Finance Committee Parliamentary establishment of an independent body especially concerned with the affairs of Iraqi banks are in isolation from the Central Bank in order to support and develop the banking sector in the country. said a member of the National Alliance MP Secretary Hadi in an earlier statement (the news): The committee called on the federal government to form an independent body and is affiliated to the private banks, concentrated work to monitor and develop the work of local banks, two branches of government and private sectors. were required Hadi: that shall be composed of persons professionals and people with competence and have a long tradition in the field of banking and non-affiliated to any political party, in order to continue its work towards the development of the banking sector, pointing out that the body is supposed to be in isolation from the Central Bank in order to devote himself to the central bank to stabilize the exchange rate of the Iraqi dinar against the U.S. dollar. mentions that the banking system in Iraq consists of forty-three banks as well as the Central Bank and distributed by ownership between (7) state banks and (30) Bank my family, including (7) Islamic banks, in addition to (6) of foreign banks. / End / 8.'s. m /

Read more: http://dinarvets.com/forums/index.php?/topic/162893-bankers-isolating-the-banking-sector-by-the-central-bank-saeb-procedure-and-would-disrupt-the-work-of-banks-in-the-domestic-market/#ixzz2h9OljezR

[SnowGlobe7]

Yota this is interesting...I will take more time and read this again later.....you have peaked my interest...cat hairs on edge

[eburt]

Ok Thanks for the post but after reading I have no idea to what it's saying/meaning?  Maybe someone can break this down...

[wc41]

Yota this is the same information as your other post "Bankers: isolating the banking sector by the Central Bank......."    yes?!?!

[DanielM]

BLAH BLAH BLAH!

[mrref]

 

BLAH BLAH BLAH!

 So BLAH BLAH BLAH do you understan what this post is saying????If you do please explain it to all of us......

[zigmeister]

 

News and Announcements

 

 

• (Foreign currency auction system) for the purpose of starting the actual work on the currency auction system has been directed seven of the registration of actual data banks (cash / bank) and sent electronically to the Central Bank 

  08/10/2013

No Copy or Paste...

 

Foreign Currency Auction system?  This seems different than the auctions they have now.  I wonder if it is similar to what Brazil is doing.

http://online.wsj.com/article/BT-CO-20130828-706764.html

 

SAO PAULO--The Brazilian Central Bank sold $498 million in foreign exchange swap contracts Wednesday at a regularly scheduled daily auction, the bank said in a statement.

The central bank has scheduled daily auctions of foreign exchange swap contracts for every Monday through Thursday until the end of the year.

The daily auctions are part of an effort to avoid volatility in the Brazilian foreign exchange market by arresting what had been, until earlier this month, the swift depreciation of the real against the U.S. dollar.

The auctions offer investors the opportunity to exchange bonds linked to domestic interest rates for paper indexed directly to the U.S. dollar. The swap contracts sold Wednesday morning expire on Dec. 2.

Typically, the auctions help support the real against the dollar by giving investors greater opportunities to hedge in the American currency. Shortly after Wednesday's auction, the real strengthened slightly to BRL2.3647 from Wednesday's open of BRL2.3758.

[SocalDinar]

Yota,

 

Just had my Syrian friend take a look at this.

 

Its talking about new CBI Foreign currency trading rules. It says that between Sept 1st and Sept 30th  7 banks did a test on trading foreign currencies electronically with the Central bank.These banks were ordred to do this by the Gov . Training was done on site at Jadaria Place?? Central Bank.

The two bottom lists show the 7 bank names and the amount of transactions

 

Thanks

[zigmeister]

Yota,

 

Just had my Syrian friend take a look at this.

 

Its talking about new CBI Foreign currency trading rules. It says that between Sept 1st and Sept 30th  7 banks did a test on trading foreign currencies electronically with the Central bank.These banks were ordred to do this by the Gov . Training was done on site at Jadaria Place?? Central Bank.

The two bottom lists show the 7 bank names and the amount of transactions

 

Thanks

So it is different than the regular auctions?  It would seem they are electronically connecting with the CBI?  Is it like what Brazil is doing?

[TBomb]

Zig, what's Brazil doing...link please...if you have it? Thanks.

[waterman13]

Post #9 above TBomb

Wm13

http://online.wsj.com/article/BT-CO-20130828-706764.html

Edited October 8, 2013 by waterman13

[zigmeister]

Zig, what's Brazil doing...link please...if you have it? Thanks.

http://online.wsj.com/article/BT-CO-20130828-706764.html

[TBomb]

Thanks Zig and Waterman...so it seems that they were testing seven banks connectivity to the CBI...reading the Huda article (link:

http://dinarvets.com/forums/index.php?/topic/162974-mysterious-exciting-relationship-between-bank-of-huda-cbi/#entry1272988)..I'm wondering if this bank has also tested "connectivity" with the CBI or if all of these banks are in Iraq?

 

Zig - re Brazil..IDK it sure seems there's some currency swapping going on in several places on the planet. Hmmm.  Sorry, I missed post number 9 - scrolling too fast.  Thanks all.

[gregp]

If they were trading currencies electronically, this investment's ready to pop. Nice ground work! Tell your friend thanks!

[JMULS31]

All this says is transferring money from the banks.  The date on the transferring was from last month. The bottom part of the announcement is the list of peope of people who were betting on banks.  that's pretty much it,.

[ScaryMary]

Oh please.......be just that one step closer. Please....

And once again Thanks Yota. You make my heart smile.

[yota691]

Yota,

 

Just had my Syrian friend take a look at this.

 

Its talking about new CBI Foreign currency trading rules. It says that between Sept 1st and Sept 30th  7 banks did a test on trading foreign currencies electronically with the Central bank.These banks were ordred to do this by the Gov . Training was done on site at Jadaria Place?? Central Bank.

The two bottom lists show the 7 bank names and the amount of transactions

 

Thanks

Thanks SocalDinar, I hope you tell your Friend Thank you from all us at DV...and GM everybody....

[gamaray]

Mr. they 0 Mayord by the esteemed Aao
Hmellnazahm currency auction security

For the purpose of starting the actual work on Nzao currency auction has Ne directing seven banks
Htishal Bhalac Afthh ( Nqdthhawwalh ) and sent Olentrunha to the Central Bank for a period of
3 9. 2 of 9 Hla 9 . Up to a 2 layer 9 . To Ahaa 9 . 2 for the purpose of choose enter Hmhanat the system of cadre told
After the Bank of interest to teaching its staff were told the IT department at the direction
Mr. Governor Aaladalh to attend to 0 Atly of these banks to the central item of Amouka Qadiriya
For the purpose Tdrlham , and the following table Cohen banks that are of interest to grasp what T admitted of Damhanat during the






This period

As a cash auction
Name bank to Narht the subscribe Aahazzad a entered movements
Musrafiqdad 80 t 9 Hala 31 and 2 991
Musrvivdad 22 No 90 No 310 of his worries
Musrvkrlstan 10 No 9 cheered H 2 31 291
Musrfasheur 10 of 90 3102 1 HD 6
Musrfasheur 32 No 90 of 3102 8 AA
Musrwamyredd 31 no 9 cheered 3102 1 H 1
Musrvhiaan e 0 9 Hala H 2 31 9 hee 1
Musrvjehan 21 no 9 Hala 31 and Z 1 Z 2
Bank Altnmhh International Investment and Finance 3 t 9 p 2 through 9 . No 2

2 x hawala auction
Name of the bank Date of subscription auctions Number of movements written
Musrafiqdad 22, not 9 or 31 m 2 9
Musrvkrlstan 1 9 cheered Hla 31 H 2 H
Musrvkrdstan 51 for the 9 Hala 31 . 2 9
Musrfasheur 10 for the 9 cheered H 2 31 7 ha 1
Musrfahady no 9 10 31 e 2 cheered Willem
Bank Huda 90 no 9 cheered the H 2 31 9 1 hav
Musrvhiaan 21 of 90 of the 31 e 2 2
Musrwamyredd 10 No 9 Ye Hla 3102
International Development Bank for Investment and Finance 3 only 9 . A 1 9 . 2 9

To prefer science and see .. ..... With appreciation

 

[zigmeister]

What is different about this auction is it is not a daily auction, it is foreign currency auction.  The set up is different if it is what Brazil is doing.  The idea is somehow it strengthens the real against the us dollar.  Iraq has stated on more than one occasion they had a plan to strengthen the dinar against the dollar, perhaps this is vehicle.

 

Egypt has started foreign currency auctions as well.  http://www.bloomberg.com/news/2012-12-29/egypt-to-start-foreign-exchange-auctions-to-stem-reserves-plunge.html

 

Egypt’s central bank will start foreign-exchange auctions tomorrow in order to preserve foreign reserves after they plunged to “minimum and critical” levels.

The North African nation’s central bank said the sales and purchases of U.S. dollars will take place periodically and aim to “preserve foreign-currency reserves and ration their use,” according to an e-mailed statement today. The new mechanism will support the dollar interbank market, it said. Egypt’s net international reserves have slumped almost 60 percent in the two years since the start of an uprising that ousted former President Hosni Mubarak.

“The current level of foreign-currency reserves constitutes the minimum and critical level that must be preserved” to meet necessary needs like repaying external debt and importing “strategic commodities,” the central bank said in the statement.

The Egyptian pound, subject to a managed float, has weakened 1.2 percent so far this month according to data compiled by Bloomberg, amid political unrest and after Standard & Poor’s lowered Egypt’s credit rating to the same junk level as Greece and Pakistan. That’s the second-biggest depreciation in the Middle East and North Africa, and took the currency to 6.1858 a dollar yesterday, near the lowest level in eight years.

‘Grave Challenges’

The government has struggled to pry economic growth from last year’s 19-year low as industries including tourism suffer from continued unrest. Egypt has faced growing tension in recent weeks as a vote on a new constitution sparked clashes between opponents of President Mohamed Mursi and his Islamist backers.

The central bank said it was committed to honoring external debt payments, and called the financial position of the banking sector “is strong and sound.” S&P lowered the credit ratings of three Egyptian banks, including Commercial International Bank Egypt SAE (COMI), the biggest publicly traded lender, on Dec. 26.

“The Egyptian economy since the beginning of 2011 has been facing many grave challenges due to the length of the transitional period and the political instability” has contributed to hurting economic indicators, the central bank said.

The central bank also urged Egyptians to “ration” their foreign currency use and to support national industries. The pound is likely to weaken to 7.3 to the dollar in 12 months, reflecting bets it will depreciate 15 percent in that period, non-deliverable forwards data show.

As has Iceland, http://globenewswire.com/news-release/2013/08/30/570575/0/en/Bond-price-for-foreign-exchange-auction.html

 

As has Iceland. If there are differences in for

 

According to an announcement published by the Central Bank of Iceland on 23 July 2013 regarding the Central Bank of Iceland foreign currency auction to be held on 3 September 2013, the Terms of Auction stated that the swap rate for the Bank’s purchase of foreign currency in connection with the sale of Treasury bonds in the series RIKS 33 0321 would be published at the close of business on 30 August 2013.

 

It has been decided that the number of Treasury bond units per euro shall be based on the auction price and the fixed price of the Treasury bonds, which is 111.403610 kr. per Treasury bond unit with accrued interest and indexation (dirty price), assuming a settlement date of 6 September 2013 (yield 2.75%).¹

The formula is as follows: Swap rate = auction price/(bond price/100).

If there are differences in foreign currency auctions in countries or how they are implemented I have no clue.

Edited October 9, 2013 by zigmeister

[TBomb]

Very good post - interesting read, Zig.  Thanks so much.

[zigmeister]

Very good post - interesting read, Zig.  Thanks so much.

Your welcome Tbomb!  Venezuela is also doing foreign currency auctions, http://online.wsj.com/article/BT-CO-20130717-714433.html,

It's interesting as well.

 

CARACAS--Venezuelan authorities announced Wednesday the country's central bank allocated some $215.3 million to more than 1,000 companies in its second hard-currency auction since the launch of the new foreign exchange mechanism in March.

The South American country sits on the largest oil reserves in the world but its 29 million residents have in recent months endured shortages of basic goods like toilet paper and cooking oil because of a lack of greenbacks in the import-dependent economy. Venezuela imports about 70% of the goods it consumes.

Venezuelan authorities launched the auction system, known as Sicad, as part of efforts to jumpstart the country's stalled economy. Venezuela has the world's fastest rising consumer prices with inflation approaching 40% in June, while economic growth hit the brakes in the first quarter and slowed to a lackluster 0.7% when compared to the same period a year earlier. Critics, however, aren't yet convinced the dollar auctions will be able to alleviate pent-up demand.

"(The auctions) will happen regularly," said Finance Minister Nelson Merentes earlier in the day to reporters. The dollar offering "could be more than 200 [million] or a little less," he added.

In a statement posted on its website, the central bank reported that 1,085 companies and 21,916 individuals submitted winning bids for $215.3 million. The final awarded amount was over the initially announced $200 million offering because private sellers participated, according to the central bank statement.

The auction was limited to participants in two states or those involved in the automotive or health sectors, authorities said. The bidding process opened last week and closed on Tuesday. After the process got underway, a central bank director, Armando Leon, said in an interview with local television station Globovision that successful bids would have to fall within a price range that he didn't release.

He added the dollars would be distributed at a single exchange rate, which analysts say is almost certainly weaker than the official peg of 6.30 bolivars per U.S. dollar. The central bank hasn't released the price at which it sells dollars through the Sicad platform, which had its only other auction in March.

After the inaugural auction, the foreign exchange platform fell dormant without explanation from authorities amid complaints that the 383 companies with successful bids were slow in receiving the dollars. Central bank officials have said that the auctions will now be scheduled for every two weeks with the dollars delivered within a week.

Late Venezuelan leader Hugo Chavez installed tight currency controls in 2003 and eventually made dollars only available through government channels. The restrictions spawned a currency black market that by some estimates is responsible for providing hard currency for roughly 10% of private sector imports in Venezuela.

The bolivar has been sliding against the dollar in the black market amid a shortage of U.S. currency and has been trading in recent weeks at around five times the official peg. Many economists blame lavish, election-year spending by Mr. Chavez in 2012 for the added strain on the country's international reserves. Mr. Chavez died in March after a nearly two-year battle with cancer.

The Sicad system was created to replace a scrapped government-run bond swap market that allowed local investors to sell bonds abroad for dollars. Both systems are meant to complement the larger foreign exchange agency Cadivi, which distributed $33.15 billion in 2012. Last year the central bank authorized some $59 billion for imports. The president of the central bank, Edmee Betancourt, has said that importers will see less this year, somewhere within the $36 billion to $42 billion range.