tjfoz Posted May 2, 2011 Report Share Posted May 2, 2011 The low CBI auctions means the CBI is holding reserve right? What other reasons would they be doing this other than knowing there must be a rate increase in the near future. Is there any? What is the significance of all of this?? Are we really that close? Could they have low sales for a full month without RVing ? Also wasnt their alot of this zero cash / low auctions stuff going on back in November or December 2010? 2 Link to comment Share on other sites More sharing options...
nowhammies Posted May 2, 2011 Report Share Posted May 2, 2011 Good questions. I am looking forward to Doc's next posting and analysis. Link to comment Share on other sites More sharing options...
Darin Posted May 2, 2011 Report Share Posted May 2, 2011 I believe you have it backwards. The CBI auctions foregin currencies, and currently they're not pulling in as much IQD to trade out those currencies. Saleh came out with a statement in reference to that as being related to a tax that some fear. Could it be smoke & mirrors, or the truth? Either way, low auctions could be seen as a good sign. For example, let's say the auctions were selling IQD (Which some believe this is what is done, but I believe the process is done in an opposite manner) This would mean that their tightening up their out-put of IQD & to us, that would be a good sign. If their auctions brought in IQD... That is also another good sign, because that would mean people are either running low on IQD, or know better & decide they would rather currently hold the IQD due to the value increasing (maybe). But, the sudden drops is due to a different factor IMO, such as the tax-structure reasoning, but is that entirely true? Or is there in reality a different mechanism in place pushing the auction levels down..? 1 Link to comment Share on other sites More sharing options...
truthful1 Posted May 3, 2011 Report Share Posted May 3, 2011 An average currency auction is approx. $150 million. Today we see only 3 million coming all from the cash side of the auction. None of the 6 banks offered to sell dollars. The low auctions that were happening last year was from the cash portion, where the banks are not giving up dinars for dollar. If you notice it will show they maintained the rate at 1183, receiving 13 dinar per dollar. Thusly, the central bank is getting more dinar for their dollar. They use the cash auction to buy dinar, maintaining the exchange rate. 1 Link to comment Share on other sites More sharing options...
truthful1 Posted May 3, 2011 Report Share Posted May 3, 2011 (edited) I believe you have it backwards. The CBI auctions foregin currencies, and currently they're not pulling in as much IQD to trade out those currencies. Saleh came out with a statement in reference to that as being related to a tax that some fear. Could it be smoke & mirrors, or the truth? Either way, low auctions could be seen as a good sign. For example, let's say the auctions were selling IQD (Which some believe this is what is done, but I believe the process is done in an opposite manner) This would mean that their tightening up their out-put of IQD & to us, that would be a good sign. If their auctions brought in IQD... That is also another good sign, because that would mean people are either running low on IQD, or know better & decide they would rather currently hold the IQD due to the value increasing (maybe). But, the sudden drops is due to a different factor IMO, such as the tax-structure reasoning, but is that entirely true? Or is there in reality a different mechanism in place pushing the auction levels down..? yes the cbi auctions, buys and sells, foreign currency and dinar. Its all how the banks participate. Banks may need to sell dollars, dinar, pound, euro, ect. Exchanging one currency to the other, is a foreign currency auction, used to handle liquidity. Edited May 3, 2011 by truthful1 Link to comment Share on other sites More sharing options...
tjmunson Posted May 3, 2011 Report Share Posted May 3, 2011 if you look on this thread Doc31 weighed in http://dinarvets.com/forums/index.php?/topic/64880-currency-auction-cbi-532011/page__pid__467842__st__80entry467842 this was right on the first page of "new" please check around for answers or similar topics before you post!! thank you! Yeah....stop going to the question forum and asking questions. What do you think this is, a question forum!!!??? Ask away peeps....that's why it' here for crying out loud! Peace 7 Link to comment Share on other sites More sharing options...
wingsofhope Posted May 3, 2011 Report Share Posted May 3, 2011 Wow PleasantValley, whats up with the ad hoc policy changes???? 1 Link to comment Share on other sites More sharing options...
sportfisher Posted May 4, 2011 Report Share Posted May 4, 2011 all we are really seeing in today's auction is average cash sales and no electronic transfers. 1 1 Link to comment Share on other sites More sharing options...
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