ronscarpa Posted March 25, 2020 Report Share Posted March 25, 2020 Once Again, NO Daily Auction today. Wednesday - 3/25/2020 The ISX has not reopened for business - no reported currency change. That's 9 consecutive days (2 days closed), 7 no Auction days. 3 7 2 Quote Link to comment Share on other sites More sharing options...
jake21 Posted March 25, 2020 Report Share Posted March 25, 2020 IMO, we won't till they resume the ISX 3 Quote Link to comment Share on other sites More sharing options...
FROSTYJACK Posted March 25, 2020 Report Share Posted March 25, 2020 Thanks Ron. I don't know if this is a good thing a bad thing or a NOthing. 😎 1 1 1 Quote Link to comment Share on other sites More sharing options...
DoD Posted March 25, 2020 Report Share Posted March 25, 2020 Ron, I have a question on these auctions. What is the buying an selling format of these daily auctions? Is it done all electronically or do they meet in a big room like the ISX does an do their buying. I guess I'm trying to eliminate the coronavirus from the reason of no auctions.... Thanks 1 1 Quote Link to comment Share on other sites More sharing options...
jcav Posted March 25, 2020 Report Share Posted March 25, 2020 Electronically. Virtual buying and selling only. There would be too much currency exchanging hands and thus even more thievery would follow. 1 1 2 Quote Link to comment Share on other sites More sharing options...
Artitech Posted March 25, 2020 Report Share Posted March 25, 2020 No auctions is supposed to be a trigger for an RV! Was always what I was led to believe’ JMHO 🤠 2 1 3 Quote Link to comment Share on other sites More sharing options...
Half Crazy Runner Posted March 25, 2020 Report Share Posted March 25, 2020 3 minutes ago, Artitech said: No auctions is supposed to be a trigger for an RV! Was always what I was led to believe’ JMHO 🤠 🙏🏻 4 1 Quote Link to comment Share on other sites More sharing options...
nannab Posted March 25, 2020 Report Share Posted March 25, 2020 No auctions is a start HCL and Article 140 have to be actually implemented I think along with a seated GOI. At this point I with they would just do it!!!!! 2 1 Quote Link to comment Share on other sites More sharing options...
Popular Post Laid Back Posted March 25, 2020 Popular Post Report Share Posted March 25, 2020 From Adam: CBI Auctions. These are used by the CBI to regulate the money, control the money, maintain the money - specifically, the rate and the amount in circulation. Actually, the CBI is selling USD at the auctions... but this will turn into a 7 hour read if I go too deep into that! It's helpful to understand where Iraq comes up with the USD to sell at the CBI auctions. The short version is this: Iraq's primary source of revenue is OIL. Payments are made in US Dollars, paid to the DFI (Development Fund For Iraq). The USD is then transferred to the Ministry of Finance (MoF), and the MoF sells it to the CBI in exchange for Dinars - the same Dinars that the CBI collected through the Auctions of USD. image source See how that all came full circle? Money in, money out, easy peasy. (This will take us to the Budget later.) (Fun fact! Dollars go to the DFI account rather than directly to the MoF to prevent the money from immediately being confiscated to pay reparation debts... kind of like using an IBC to protect assets.) We can expect the auctions to continue while the Dinar is pegged to the dollar, undervalued, and the circulation needs to be controlled. There are some people who believe the Auctions in Iraq need to stop, and there's good reason for that - few countries have had success with them. For example, South Sudan (who knows where that is?) tried it four times after they devalued. South Sudan, which is known as one of the most underdeveloped nations in the world, and who's primary export is timber. That's no knock on wood, the world needs wood... but wood isn't oil, and South Sudan isn't Iraq. (Sudan and South Sudan don't even make the top 100 in the world for oil reserves.) Iraq is obviously different, both in potential here and in the successful practice of having auctions. Other countries to do currency auctions include Jamaica, Uganda and Sierra Leone. Like South Sudan - none of them are Iraq, and none of them carried Auctions as long as Iraq... in fact, the auctions in those cases were failures. With those examples in mind, of course we'd like to see the currency options stop. And they probably will, at some point. But most likely not until after the RV. Since the auctions aren't stopping, and Iraq is not the same as the countries that failed at auctions... what can we expect during a major rate change? Fantastic question! I'll take a stab at it, using examples to make the point. At the auctions, the CBI operates buy/sell at about a 2% difference, which is an effective start of the spread that will affect every single one of us. If the rate were changed today to 1IQD per 1USD and the IQD returns to the global market (it will, at any significant increase in rate), then we will be trading in at the rate stated by the CBI minus middlemen fees - what it costs to actually get the money through the various institutions and into your account. (This isn't Bitcoin, you know!) If the CBI is using a 2% spread, they will "buy" at .98 and "sell" at 1 per US dollar. I fully expect that to fluctuate, perhaps wildly. They may pay .99 at first to show their confidence, and then lower it to .90 or further. (The bigger the differential, the more beneficial it is to them for the day profits.) They may quickly move to a flat 1:1 "Auction rate" simply to reinforce the rate and show that they are going to ditch the auctions soon - a lot of this is going to depend on the market. It is a business, after all. A 2 cent difference may not seem like much, but bear with me... It is important to understand the spread! I'll keep using the 1:1 number. For example, Iraq announces that the dinar is equal to the US dollar, the CBI is backing it, the IQD goes on the global market, and the rate sustains itself after a short time due to market demand. At this point, a lot changes, but those are different (and much longer) conversations. When we exchange, we are not going to the CBI - we are going to a bank that will trade IQD for dollars (or any currency). That bank will rely on the CBI buy rate first, which means they are getting a max of .98 USD per 1 IQD. Then they have to pay tellers and all their other expenses, so they add their spread on top of that - and this is assuming the bank you use is buying (selling) direct with the CBI. (They won't be.) By the time it gets to you, the CBI may have an advertised rate of $1, but you're only putting .70 in your pocket (before taxes). That "spread", or "cost", is unavoidable. We are not going to get the full "rate". Of course, you will get a better rate (money in your pocket) if you're VIP!" rel="">VIPhere at DinarVets, but that's not the point of this. The point is the Auctions will continue, and looking at past auctions - even yesterday's or today's auction - will not give us clues to if Iraq will RV today or tomorrow. (If we could see tomorrow's auction, that would be a different story!) The Auctions are good to see, in Iraq, because they are proof that Iraq is stable, still in business, and functioning. But the CBI Auctions will not give us the RV date until after you get my text message. In my opinion no seeing the auctions for 7 days in a row means the CBI is up to something. Go RV Go asap 8 6 7 Quote Link to comment Share on other sites More sharing options...
southbeach Posted March 25, 2020 Report Share Posted March 25, 2020 Awesome post LaidBack 2 1 3 Quote Link to comment Share on other sites More sharing options...
DoD Posted March 25, 2020 Report Share Posted March 25, 2020 Thanks everyone for their response, I can now take the coronavirus out of anything to do with the stopping of the auctions... 2 5 Quote Link to comment Share on other sites More sharing options...
ronscarpa Posted March 25, 2020 Author Report Share Posted March 25, 2020 3 hours ago, Laid Back said: CBI Auctions. Thanks for the post Laid Back ... much appreciated..! RON 2 Quote Link to comment Share on other sites More sharing options...
nannab Posted March 25, 2020 Report Share Posted March 25, 2020 Easy peasy sounds good to measy Thank you Adam, Laid Back and fellow posters. 1 1 Quote Link to comment Share on other sites More sharing options...
Adam Montana Posted March 25, 2020 Report Share Posted March 25, 2020 2 hours ago, DoD said: Thanks everyone for their response, I can now take the coronavirus out of anything to do with the stopping of the auctions... Partially... corona is having an impact everywhere, directly and indirectly. Corona isn't the primary driver in this, though - that is true. 5 4 5 Quote Link to comment Share on other sites More sharing options...
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