Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

*** CBI Currency Auction 13-10-2011 ***


The Machine
 Share

Recommended Posts

Announcement No. (1999)

The latest daily currency auction was held in the Central Bank of Iraq on the 13-OCT-2011. The results were as follows:

Details Notes

Number of banks 23

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 182,245,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 182,245,000

Total offers for selling (US$) -----

http://www.cbi.iq/index.php?pid=CurrencyAuctions

  • Upvote 5
  • Downvote 2
Link to comment
Share on other sites

Here is yet further evidence that there will be an R/D before an R/V. Some of here have tried to twist the CBI actions rdsults to say they are buying back Dinar in order to bring down the money supply. Well as anyone can plainly see they did buy back squat.bbonce again they are flooding the market large sums of money. The is absolutly no feasible way they can do anything but R/D with all the money in circulation especially when they continue to put large amounts of additional funds week after wekk in the market. This sucks and I am getting more ****** off by the day.

Edited by Markinsa
Language
  • Upvote 6
  • Downvote 12
Link to comment
Share on other sites

It looks to me like they sold dollars to the banks and took in Dinar, isnt that what we want?

No it says Auction price buying Dinar is 0. Remember this is the CBI auction. If they were buying Dinar back it would be in this listed here not the Auction price selling. You can also see the total amount purchased is also 0.

  • Upvote 1
Link to comment
Share on other sites

There was a thread on here a few weeks ago about this very subject, clarifying the auction chart and how to read it...

According to the consensus... they are selling US Dollars, bringing in Dinars. A good thing.

  • Upvote 8
Link to comment
Share on other sites

I have been a member for a year now and I still do not know what the CBI is buying. I am not sure anyone else does. Would someone please tell us once and fir all ,,,, are they buying USD or Dinar?? Thanks for post

They are buying and selling USD, which means they are selling and buying Dinar.

If they sell USD, they buy Dinar

If they buy USD, they sell Dinar.

They are the Central Bank, and Iraq is a dual currency country.

There are usually between 20 to 26 banks participating.

If my bank took on a lot of dinar, and my dollar reserves were low, I would wait until the CBI was selling dollars, and would sell my dinar back for dollars untill I had the balance of the two that my bank usually required. The opposite if I took in too many dollars, I would wait until they were selling dinar.

This is the way the CBI acts as a Central Bank, and serves the other banks to keep them in balance and able to operate in a dual currency economy.

It is a very popular forum fact that these auctions are used to take dinar out of circulation. Think about it...

Six days a week, 52 weeks a year, five years, 100 to 200 million per auction; when would Iraq have ceased to have any dinar in circulation?

100 million dollars buys approx 100 billion dinar. Ten days per Trillion Dinar (1000 bililion is 10 x 100 billion, is a Trillion)

Let's be uber conservative and say that it took 2 weeks to take in a trillion Dinar..(10 times 100 billion is a trillion).

That would be 2 trillion dinar off the street in a month. 24 trillion off the street in a year; and these are grossly small auctions of only a hundred million dollars per day, five days a week.

In five years, they would have taken 120 trillion of the current 30 trillion Dinar that the CBI claims responsibility for.

The problem here is that they never had 120 trillion dinar, but if the auctions were used to contract the money supply, that is a very conservative portrayal of how much the cash would have shrunk.

So, if they are buying dollars, they are selling dinar. If they are selling dollars, they are buying dinar.

Wax On, Wax Off...

  • Upvote 13
Link to comment
Share on other sites

Great Explanation Dalite! (or should I say, Mr. Miyagi?) +1 smile.gif

Thanks, that explanation is still a work in progress.

I argued with a lot of folks when I believed they were merely taking dinar out of circulation so they could RV.

From those discussions, I tried to better understand the process, and the benefits.

I know there is a more in-depth explanation, and mine is still up for revisions, but I honestly believe it to be the broad strokes of what the auctions do..

Link to comment
Share on other sites

They are buying and selling USD, which means they are selling and buying Dinar.

If they sell USD, they buy Dinar

If they buy USD, they sell Dinar.

They are the Central Bank, and Iraq is a dual currency country.

There are usually between 20 to 26 banks participating.

If my bank took on a lot of dinar, and my dollar reserves were low, I would wait until the CBI was selling dollars, and would sell my dinar back for dollars untill I had the balance of the two that my bank usually required. The opposite if I took in too many dollars, I would wait until they were selling dinar.

This is the way the CBI acts as a Central Bank, and serves the other banks to keep them in balance and able to operate in a dual currency economy.

It is a very popular forum fact that these auctions are used to take dinar out of circulation. Think about it...

Six days a week, 52 weeks a year, five years, 100 to 200 million per auction; when would Iraq have ceased to have any dinar in circulation?

100 million dollars buys approx 100 billion dinar. Ten days per Trillion Dinar (1000 bililion is 10 x 100 billion, is a Trillion)

Let's be uber conservative and say that it took 2 weeks to take in a trillion Dinar..(10 times 100 billion is a trillion).

That would be 2 trillion dinar off the street in a month. 24 trillion off the street in a year; and these are grossly small auctions of only a hundred million dollars per day, five days a week.

In five years, they would have taken 120 trillion of the current 30 trillion Dinar that the CBI claims responsibility for.

The problem here is that they never had 120 trillion dinar, but if the auctions were used to contract the money supply, that is a very conservative portrayal of how much the cash would have shrunk.

So, if they are buying dollars, they are selling dinar. If they are selling dollars, they are buying dinar.

Wax On, Wax Off...

I like your explanation as well. But isn't it possible/probable that as they bring the dinar back in from circulation, that they are destroying the worn out notes. Thus decreasing the overall amount in circulation as the bills wear out. Wouldn't that be an effective way to slowly decrease the number in preparation for the RV? Considering their society is mostly cash carrying and not much into the electronic debit/credit transactions like most everyone else in the world. :)

Your thoughts?

Edited by billbill
  • Upvote 1
Link to comment
Share on other sites

Amount sold at auction price (US$) 182,245,000

Amount purchased at Auction price (US$) -----

This says it all. Amt sold (US$) 182,245,000 (note it says US$)

Amt purchased at auction...0

they are buying dinar with US dollar. They take in the dollar in everyday transactions with other countries and then sell them for dinar at the auctions.

Here little pink piggy piggy :eyebrows:

  • Upvote 1
Link to comment
Share on other sites

<br />No it says Auction price buying Dinar is 0.  Remember this is the CBI auction.  If they were buying Dinar back it would be in this listed here not the Auction price selling.  You can also see the total amount purchased is also 0.<br />
<br /><br /><br />

THE BANKS BUY DINAR FROM THE CENTRAL BANK USING DOLLARS!

GOD BLESS!!! LORD SEND THE RAIN!!!

  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

Here is yet further evidence that there will be an R/D before an R/V. Some of here have tried to twist the CBI actions rdsults to say they are buying back Dinar in order to bring down the money supply. Well as anyone can plainly see they did buy back squat.bbonce again they are flooding the market large sums of money. The is absolutly no feasible way they can do anything but R/D with all the money in circulation especially when they continue to put large amounts of additional funds week after wekk in the market. This sucks and I am getting more pissed off by the day.

Well, someone hasn't been doing there reading lately...

Its a good thing, they are selling USD to buy back IQD

Try to find some old Doc31 post's for more info.

  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

I like your explanation as well. But isn't it possible/probable that as they bring the dinar back in from circulation, that they are destroying the worn out notes. Thus decreasing the overall amount in circulation as the bills wear out. Wouldn't that be an effective way to slowly decrease the number in preparation for the RV? Considering their society is mostly cash carrying and not much into the electronic debit/credit transactions like most everyone else in the world. :)

Your thoughts?

The soiled notes are replaced with new, then destroyed; not affecting what is in circulation. That practice could be stopped at any time .

The CBI does not count the unissued notes from 2003, the soiled notes, or any unissued coin as a part of their circulation.

I agree that slowly drawing the cash in would be a great idea; especially with the USD to keep the economy going.

Unfortunately, their balance sheets, and press releases indicate a rising cash supply. I was reviewing the articles I have found and saved showing 27 trillion, 28 trillion and now 30 trillion as the CBI liability. The foreign reserves have been increasing as well; now at an equivalent of 58 billion USD, which the CBI states will back the exchange rate 110%.

The main problems they now face is debt, and the restrictions it imposes. Neither the IMF or Paris Club will allow a significant increase in value, while Iraq is on the hook with them as a borrower.

Large increases in value are seen by a creditor as eroding the debt owed; often referred to inflating the debt away.

Electronic means will eventually catch on and spread throughout the country. In a cynical society, it is hard to promote a debit card when there is no electricity to power the ATM at the time you need your money.

Increases in safety, stability and security will pay off in growth of the money's value. There is little doubt that they will eventually be a rich nation.

I am just afraid it will take a bit longer than we were promised by the ones selling the dinar.

I still have a few good years left, and still retain hope...

Link to comment
Share on other sites

I like your explanation as well. But isn't it possible/probable that as they bring the dinar back in from circulation, that they are destroying the worn out notes. Thus decreasing the overall amount in circulation as the bills wear out. Wouldn't that be an effective way to slowly decrease the number in preparation for the RV? Considering their society is mostly cash carrying and not much into the electronic debit/credit transactions like most everyone else in the world. :)

Your thoughts?

You hit it on the head. Dumping old for new. America did it with most of our notes. thats why it's hard to get old notes. there out there but not in large amounts.

Link to comment
Share on other sites

You hit it on the head. Dumping old for new. America did it with most of our notes. thats why it's hard to get old notes. there out there but not in large amounts.

The US does this every seven years to foil counterfeiters.

Leglislation passed in 1996, first cycle in 1997.

In the times between cycles, soiled currency is removed and destroyed.

It is replaced on a one to one basis.

If not, no bank would take a bill that was taped, tore or printed on.

You would be stuck with it or poorer by the amount if the bank took it to be destroyed and just gave you a lollypop...

Link to comment
Share on other sites

Many seem to forget that every dinar note in circulation is a liability for the CBI, especially with regard to any future RV, they continue to buy and destroy as many dinar notes as their finances allow.

So much IQD has been brought in, the dollar is left to be used by the Iraqis as their currency. What better reason for a 1:1 so that there is little confusion when the time comes. That would smooth a huge speed bump for the literate and illiterate.

  • Upvote 2
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    No registered users viewing this page.



  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.