CBI sells at 1170 on 4/11/11

[believing]

CBI sells $170 million

4/11/2011 6:01 PM

BAGHDAD / Aswat al-Iraq: The Central Bank of Iraq (CBI) dollar sales went up on Monday to $170.899 million, compared to the previous session’s $164.309 million, at an exchange rate of 1,170 Iraqi dinars per dollar.

"The demand hit $4.248 million in cash, covered at an exchange rate of 1,183 Iraqi dinars per dollar, and $166.651 million in foreign transfers outside the country, covered at an exchange rate of 1,183 Iraqi dinars per dollar," according to a CBI news bulletin received by Aswat al-Iraq news agency.

None of the 18 banks that participated in today’s session offered to sell dollars.

The Central Bank of Iraq runs a daily auction from Sunday to Thursday.

http://en.aswataliraq.info/Default1.aspx?page=article_page&id=141923&l=1">CBI sells $170 million

[tommyboy]

OK. Again the question: are they selling dinar or buying dollars or just keeping a stable currency?

What's your take?

[Jazzy baby]

I would say buying Dollars from the sound of it. wonder if the would RV if the everyone stopped buying

cutting off there money making plan

[wildinar]

My question is are the 18 banks just buying the currency from the CBI, to stock pile and not selling to others?

[mordiaky]

its not that hard to figure out, let me break it down for you,

Number of banks 17 (well this is the number of banks involved)

Auction price selling dinar / US$ 1170 (this is the value they sale US$ at per dinar they take in)

Auction price buying dinar / US$ ----- (amount buying so if it was dollars they would have a number but they are not buying any US$)

Amount sold at auction price (US$) 166,609,000 (amount sold as you can see it says US$)

Amount purchased at Auction price (US$) ----- (this is the amount they purchase US$ always none)

Total offers for buying (US$) 166,609,000 (this is the total amount banks are buying US$)

Total offers for selling (US$) ----- (this is the amount banks sold to CBI US$)

[Rogue Knight]

The CBI curency auctions are to buy back dinar in dollar amounts. It increases their fiat currency percentage as opposed to their fractional banking percentage. This in turn stabilizes their currency and backs up their Reserves. This IS a good thing for the RV. Refer to some of DOC31"s old DV posts.

Edited April 12, 2011 by Rogue Knight