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Central Bank suspended currency auction begins remittance system


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Central Bank suspended currency auction begins remittance system

 

History of edits:: 02.24.2015 12:01 • 88 visits readable

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{Baghdad: Euphrates News} central bank, announced Tuesday, to stop work and currency auction system begins remittance system. 
He informed the Central Bank director Fadel Hussein told {Euphrates News} today that "it is based on the decision of the central bank governor was stopped work ERA permanently currency, we started remittance system because of smuggling and money laundering," operations. The Governor of the Central Bank of Iraq on the Keywords announced that he was "not true that the central bank remains preoccupied with selling the currency like ATM daily basis. " In the same vein, a report issued by the Central Bank of Iraq, saying, "Based on the provisions of the Iraqi Central Bank Act for the purpose of achieving the objectives of the Bank and the stability of the Iraqi dinar exchange rate against foreign currency through the optimal use of resources revealed foreign exchange to meet the needs of all and not the central occupancy of functions which are at the heart of the work of the banking system and the relevant departments, with a commitment to the requirements of the law against money laundering and terrorist financing Central decided to new instructions issued in this regard. " commented Economists and Financial on the decision to stop the bank's daily currency auction that I mean cancellation of the sale by remittances, and cash sales will continue, explaining that he came to curb money laundering and smuggling of currency, warning against complacency and inaction in the follow-up and hand the money purchased by banks from the bank, stressing the need to follow those banks legal proceedings in converting Alambalg.anthy and

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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Central Bank: Cancel Auction sell currencies to keep the exchange rate of the dinar against the dollar

Monday, February 24, 2015 13:20

 

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[baghdad-where]

 

Iraqi Central Bank announced on Tuesday, the abolition of the daily auction for the sale of foreign currencies.

 

The central bank said media director Fadel Hussein told all of Iraq [where] that "the need to cover banking offices, community and government banks of currencies will be by remittances, with only stop the daily bank auction sale, which includes direct criticism including the dollar."

 

He added that "this decision is not contrary to what was stated by the budget bill for 2015 identifying the auction amounts to 75 million dollars."

 

He pointed out that "the move is part of the Bank's policy to maintain the stability of the Iraqi dinar exchange rate against the dollar has been preceded by a step to reduce the volume of sales in the auction."

 

The Central Bank of Iraq sells in previous years, sums up to billions of dollars a month, but decreased significantly in the past few weeks where he sold more than $ 2.8 billion in the month of January last.

 

It is said that the bank was selling the dollar on the price of 1166 Iraqi dinars to the dollar, which Ibiaa in markets and banking offices at about 1220 dinars, a difference of 54 dinars

 

It was expected by the bank's decision to drop the sales of the dollar in the auction for this year, according to the law of the state budget, which began in Parliament on 29 January last, and ratified by the Presidency of the Republic in 10 of this February.

 

The Act provided that "the central bank is committed to identifying sales of hard currency [dollar] in the daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process, and calls for the participant bank in the auction provide goods enter documents and statements of tax settling accounts and savings Alkmarki within 30 days of the date of purchase of the amount and otherwise apply to the bank penalties stipulated in the Central Bank Act or regulations issued it, and use other banking tools to maintain the strength of the dinar against the Atar.anthy 16

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Ok help me to understand this - By cutting off the auctions of the dollar - Is this like cutting off their life support?  I mean by having the auctions was one of the CBI money making and now that it's cut off how will they make money?  Don't they have to RV sometime soon in order to survive?  Or is there more to these auctions than what they are telling us..... :confused2:

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Ok help me to understand this - By cutting off the auctions of the dollar - Is this like cutting off their life support? I mean by having the auctions was one of the CBI money making and now that it's cut off how will they make money? Don't they have to RV sometime soon in order to survive? Or is there more to these auctions than what they are telling us..... :confused2:

As far as the CBI goes, the dinar is not an asset, but a liability. Raising the value doesn't increase it's wealth, it increases its debt.

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As far as the CBI goes, the dinar is not an asset, but a liability. Raising the value doesn't increase it's wealth, it increases its debt.

Hmm not understanding - It's not asset because it not revalued but once they revalue their currency won't it become asset?  Also, why would CBI stop the auctions to cause more issues with their shortage. Just not making any sense to me.....

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Hmm not understanding - It's not asset because it not revalued but once they revalue their currency won't it become asset? Also, why would CBI stop the auctions to cause more issues with their shortage. Just not making any sense to me.....

It'll never be an asset no matter what the value.

I actually haven't taken the time to study the mechanism they've replaced the auctions with. I'm not really that interested.

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It says right in the article that they're going to continue doing cash sales (which have typically been less than $10million daily). I wonder if this means in place of remittances they will just up the cash sales up to the max of $75million they recently made a regulation. If so, that would be very bad…

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I've been in this investment for over five years now and I have heard several very smart people say look for the auctions to stop. Not one of them ever said it would be an instantaneous transition to the rate we all hope for and honestly I have no clue how this all plays out but common sense and a general understanding of the banking system tells me absolutely nothing about what they will do! If I was to guess, though I'd have to say a gradual rise in the value would provide the least amount of shock to the system. I'm also looking to forex for a decoupling from the dollar and a free float to let the market drive the value. Again IMO only, floating it on forex from 1166 :1 would provide early forex investors with the most potential for appreciation.

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What they are doing is moving the functionallity of the sale of foreign currency from the auction point to inside the bank. Sale of foreign currency meaning large sums of USD to smaller banks and money changsrs. This makes the tracking of who has what and where its going much easier because, under the auction system, it was like the wild wild west out there...

Wild, wild, East actually.

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