Announcement to Cancel Auction: MOF/CBI

[Terrill]

Saw this on another site. Sure enough, here is the link: CBI

DOC31....I know you said you'd be gone for 9 days ( ) but what do you think of this? Any 'real' meaning??

* Announcement to Cancel Auction: MOF/CBI

April 6th, 2011 11:24 am · Posted in NEWS (Iraq & World Currency)

MOF Auctions

The Ministry of Finance is authorized under the “Public Debt Law” to issue obligations guaranteed by the government of Iraq. The Central Bank of Iraq, as fiscal agent of the Ministry of Finance is authorized to conduct auctions for government debt securities on behalf of the Ministry of Finance. The Ministry of Finance issues government debt securities to finance the government of Iraq, subject to the limits of the “Annual Budget Law”.

To achieve this financing objective, the Ministry of Finance determined a system and mechanism for government debt securities auctions that will be held periodically, with the results announced at 11 am in the morning after the close of the auction at 10 am.

Announcement to cancel auction (HY23) 4-APR-2011

Please be informed that the Ministry of Finance canceled the auction T/b No. (HY23) dated 4-4-2011. (emphasis provided)

[chilli24]

This is not the currency auction.

[Terrill]

This is not the currency auction.

Ah...Thx.

[wshflthnkn]

I Know this isnt the currency auction...But I too was going to Post this for Doc31. I find this interesting. Anyone have any insight to this? Doc31?

[Darin]

If or if not a currency auction, it was an auction canceled regardless.. By the CBI..

What type of auction was this?

What does it mean?

Why did it happen?

These are what the inquiring minds want to know...

[allinxpress]

If its not the currency auction.... then what are they doing, auctioning off the furniture???

Im sorry.. but I totally believe that this is the news we have been waiting for. I think we are in the landing pattern..

[Old Guy]

Saw this on another site. Sure enough, here is the link: CBI

DOC31....I know you said you'd be gone for 9 days ( ) but what do you think of this? Any 'real' meaning??

* Announcement to Cancel Auction: MOF/CBI

April 6th, 2011 11:24 am · Posted in NEWS (Iraq & World Currency)

MOF Auctions

The Ministry of Finance is authorized under the “Public Debt Law” to issue obligations guaranteed by the government of Iraq. The Central Bank of Iraq, as fiscal agent of the Ministry of Finance is authorized to conduct auctions for government debt securities on behalf of the Ministry of Finance. The Ministry of Finance issues government debt securities to finance the government of Iraq, subject to the limits of the “Annual Budget Law”.

To achieve this financing objective, the Ministry of Finance determined a system and mechanism for government debt securities auctions that will be held periodically, with the results announced at 11 am in the morning after the close of the auction at 10 am.

Announcement to cancel auction (HY23) 4-APR-2011

Please be informed that the Ministry of Finance canceled the auction T/b No. (HY23) dated 4-4-2011. (emphasis provided)

I believe this refers to their Treasury Bond Auctions,..which you know is a form of debt,.. and it states they are doing it to reduce debt,..just my take on this !

Good Things To All !

[Darin]

Whichever it may be... I would have to make the assumption it is good news for the GOI & CBI.

Since 04/04 has already came & gone, to cancel it would mean something has been taken back.

[RonSkilbeck]

Just want to point out a few tidbits - 1) They have a bond auction each month - Not sure, but I think this was for their bonds (to finance government borrowing and payments), and 2) They had the currency auction already today (April 6th auction) - Now when they stop the currency auctions altogether you can probably look for it to hit the FOREX. No need for currency auctions if it's on the FOREX.

[Darin]

Just want to point out a few tidbits - 1) They have a bond auction each month - Not sure, but I think this was for their bonds (to finance government borrowing and payments), and 2) They had the currency auction already today (April 6th auction) - Now when they stop the currency auctions altogether you can probably look for it to hit the FOREX. No need for currency auctions if it's on the FOREX.

So, if this was for bonds that they sell.... And they do the auction once a month, and they canceled the auction.... Questions remain, such as:

Will they have another one to replace it this month?

Will they discontinue having these auctions all together?

& if they have no need to finance for borrowing & payments, wouldn't that be a good sign for our part?

Hope the normal gurus & pumpers don't spin this one the wrong way....

[Old Guy]

So, if this was for bonds that they sell.... And they do the auction once a month, and they canceled the auction.... Questions remain, such as:

Will they have another one to replace it this month?

Will they discontinue having these auctions all together?

& if they have no need to finance for borrowing & payments, wouldn't that be a good sign for our part?

Hope the normal gurus & pumpers don't spin this one the wrong way....

D, It is my opinion that,..yes it is a good thing for us and them,..they are saying they have enough operating capital and consequently also enough debt and don't really need any more of either !

Good Things To All !

[DinarStorm]

People read and don't get blind with all the bashers here. RV is already in the process WTO is programed for acceptance tomorrow 9:30am, everything else is in place so the wto acceptance is our big door to go international trading and exchange of the Iraki dinar. Jeezz you people are so concentrated on the bad news that you can't see with the big news come in front of you. If everything goes in schedule tomorow for sure it will be one of the biggest days to celebrate on this long journey.

[tevye02]

People read and don't get blind with all the bashers here. RV is already in the process WTO is programed for acceptance tomorrow 9:30am, everything else is in place so the wto acceptance is our big door to go international trading and exchange of the Iraki dinar. Jeezz you people are so concentrated on the bad news that you can't see with the big news come in front of you. If everything goes in schedule tomorow for sure it will be one of the biggest days to celebrate on this long journey.

Okie Dokie!

(Pun intended) lol

[Austin-Powers-for-PM]

People read and don't get blind with all the bashers here. RV is already in the process WTO is programed for acceptance tomorrow 9:30am, everything else is in place so the wto acceptance is our big door to go international trading and exchange of the Iraki dinar. Jeezz you people are so concentrated on the bad news that you can't see with the big news come in front of you. If everything goes in schedule tomorow for sure it will be one of the biggest days to celebrate on this long journey.

Hey DinarStorm, the reason people get fixated on the bad news is that they have been burned way to many times by "Good News." First of all, what proof do you have that WTO is programmed for acceptance tomorrow at 9:30 am? (and by that I mean credible proof, not an "Okie" type post). It's also human nature to create a defense mechanisim around one's self to prevent reoccuring let down's. Let me put it this way. If a friend of yours told you to meet you somewhere at a certain time, and he didn't show up, and this happened multiple times, even if he had a great excuse you will start to resist accpeting his appointment times. It's the same deal here.

I do believe that we are microscopically close to the RV, and I am excited. I also felt the same way on February 25th, and March 1st, and March 15th, and March 25th, and April 1st. So it's time to decompress, and patiently wait until it happens.

[kid4dinar]

My 2 dinar worth.

Why they have stopped all auctions.

1. they are rebooting the computors with the new budget entered into system.

2.To audit and confirm they have what they say they have to show to the WTO.

3.When computors come online rate should be in place.

4 Autions will continue.

Why else?

Whether bonds, treasury bills, whatever.. You dont just stop business, unless you counting what you have..

JMHO.

I have my fingers crossed.

God bless us all

Edited April 6, 2011 by kid4dinar

[Darin]

My 2 dinar worth.

Why they have stopped all auctions.

1. they are rebooting the computors with the new budget entered into system.

2.To audit and confirm they have what they say they have to show to the WTO.

3.When computors come online rate should be in place.

4 Autions will continue.

Why else?

Whether bonds, treasury bills, whatever.. You dont just stop business, unless you counting what you have..

JMHO.

I have my fingers crossed.

God bless us all

Interesting thoughts....

We can only speculate on why they didn't have this auction. Does history show we have had this type of auction canceled in the past??

In most cases, we may never see a business shut down as they do internal work such as counting inventory, reviewing books, etc. etc. because they likely do it after-hours.

I recall working at a furniture company once that did an internal audit on inventory, and they did it mostly during the hours past normal business hours.

But I am more curious on the following:

Did they auctions "occur" than they pulled back on the auctions failing to commit to them?

If the auctions were canceled on Monday, why are we hearing about it today (Wednesday)? - We should or could of heard about it as early as Monday since the M.E. is ahead of time-zone wise.

The article itself doens't seem to really give much reason for the purpose of doing so, only leaving us to speculate.

Where's Doc when you need him??

[ech]

The CBI auction which was cancelled is more or less the equivalent of the U.S. Treasury T-Bill auction. The CBI holds these auctions roughly twice per month. Prior to 2010 the maturity was 3 months, starting in 2010 the maturity increased to either 6 months or one year. The CBI cancelled eight of the auctions in 2009 & nine of them in 2010. This & more information is on the CBI Auction history spreadsheet here: CBI results. The cancellation may be nothing or it could be an indicator however this was the first auction cancelled in 2011.

[sandyf]

If its not the currency auction.... then what are they doing, auctioning off the furniture???

Im sorry.. but I totally believe that this is the news we have been waiting for. I think we are in the landing pattern..

You really ought to read the file before commenting.

They are selling Debt Securities often called Bonds and it is in the form of a contract with an expiry date ranging up to 12 months. The cancellation may be temporary or permanent. Even if it was permanent it would take about a year to clear all existing contracts.

Does this really tell us anything?

[Dianne]

Thanks for the post!

Edited April 7, 2011 by Dianne

[Old Constipate]

People read and don't get blind with all the bashers here. RV is already in the process WTO is programed for acceptance tomorrow 9:30am, everything else is in place so the wto acceptance is our big door to go international trading and exchange of the Iraki dinar. Jeezz you people are so concentrated on the bad news that you can't see with the big news come in front of you. If everything goes in schedule tomorow for sure it will be one of the biggest days to celebrate on this long journey.

It is now 14:23 Thusday in Iraq.

I've looked and can't find anything that says WTO has accepted Iraq

Thanks for the post anyway.

[mordiaky]

It is now 14:23 Thusday in Iraq.

I've looked and can't find anything that says WTO has accepted Iraq

Thanks for the post anyway.

here ya go