CBI is the rise of the dollar bubble

[Rogue Knight]

CBI is the rise of the dollar bubble

26.12.2011 | (Voice of Iraq) - Add comments - Baghdad - Hisham Abdul Wahab - Dar Al-Hayat described the Deputy Governor of the Central Bank of Iraq the appearance of Mohammed Saleh high exchange rate of the dollar in the domestic market for more than a week, b «bubble» price as a result of exceptional reasons caused by the need for Iraqi traders to foreign exchange to finance regional trade, which increased their rates under the new conditions in the region, in addition to the speculation some of them, which led to a huge demand for foreign currency. Saleh said in a statement to «life» that «the dollar exchange rate returned to levels before the rise recently, ie, about 1200 dinars per dollar, after reaching the last week about 1250 dinars». He pointed out that «Central» took prompt measures to fill the growing need on the dollar, was the most important double the sales of foreign currency in the auction, organized by the day to meet the demands of traders and businessmen, having increased their business operations as a result of significant changes occurred in the contexts of trade exchanges between Iraq and neighboring countries, and the establishment of the Iraqi traders play a different commercial result of the repercussions of recent events in the region . and revealed that the «central» sold in two days more than $ 400 million through the daily auction, which helped to absorb a trillion dinars from the local market, pointing out that «Central» Continue to develop the Iraqi market and its need for foreign currency in the context of compliance with the conditions of supervision to avoid operations money laundering, which led to slightly delay remittances. He stressed that a strong currency and the dinar will be covered to protect it in a foreign currency, representing one hundred percent of each local unit of cash. It quoted Iraqi merchants who confirmed that the prices of most commodities did not rise, but demand fell due to confusion that accompanied the commercial activity in the local market expectations of continued high exchange rate of the dollar and fears of rising inflation and adversely affect the purchasing power of the citizen. Saleh was denied in a statement to the media that the rise of the dollar as a result of U.S. withdrawal from Iraq, pointing out that this withdrawal will increase the power of the dinar. He stressed that the situation in the region was one of the reasons for the decrease, making the Iraqi trader and broker in the region, as the need of regional trade to finance in foreign currency, bringing pressure on the auction «Central» to provide foreign currency until the market can keep up with additional commercial operations. He pointed out that «Central» now has the highest reserves in its history.

http://www.sotaliraq.com/business.php?id=4954#axzz1hB2v52h5

[k98nights]

I love how Saleh says the dinar will increase in power now that the USA has left... let's hope this is very soon!

[zigmeister]

Me too. I believe Shabibi stated this as well.

[k98nights]

Not to sound self-serving, but now is a good time to do this with all of the political turmoil going on.... it would at least give the Iraqi people hope for their future and some extra bread in the cupboard.

[zigmeister]

I agree. I believe if they hit the RV button it will settle the discord of the people. Put some cha ching in their pockets will put honor back in the hearts of the people and belief in the government.

[unirod]

Truly amazing how nothing effects the Dinar rate. Not the US troop withdrawl. Not suicide bombings. Not political crisis.

[k98nights]

I agree. I believe if they hit the RV button it will settle the discord of the people. Put some cha ching in their pockets will put honor back in the hearts of the people and belief in the government.

Yep... spot-on assessment Mr. Zig

[Biker]

Yea but its still the same old same old, Talk Talk Talk and no action, These fools seem like they couldn't give to hoots about there people being able to trade on the open market, and make a dollar for them selves.

[zigmeister]

Truly amazing how nothing effects the Dinar rate. Not the US troop withdrawl. Not suicide bombings. Not political crisis.

It has to be held artificially in my opinion. How they do it I am not really sure.

[InItSince05]

I love how Saleh says the dinar will increase in power now that the USA has left... let's hope this is very soon!

Lets just hope its not the same soon that Shabibi mentioned in April. :lol:

[Spud]

Article already was posted yesterday

[k98nights]

Lets just hope its not the same soon that Shabibi mentioned in April. :lol:

Seriously!

[Francie26]

Truly amazing how nothing effects the Dinar rate. Not the US troop withdrawl. Not suicide bombings. Not political crisis.

If I sound gravely unknowledgable, please forgive me in advance, but I simply don't know these things, so my question is: is this because the dinar is set at an artificial rate and is backed by nothing but the State? If that?

[fnbplanet]

It was the middle of last week that they absorbed a trillion dinars through the auctions. The auction amounts have NOT dropped since then, so one may speculate that they have taken yet another trillion out. All this is coming from the CBI reserves? He's still saying that they have a record amount. Hmmmmmm.

[unirod]

If I sound gravely unknowledgable, please forgive me in advance, but I simply don't know these things, so my question is: is this because the dinar is set at an artificial rate and is backed by nothing but the State? If that?

Francie,

General concenses is that the rate is maintained by what's called a dirty float. So yes it is artificial

[BrokeNoMore]

Truly amazing how nothing effects the Dinar rate. Not the US troop withdrawl. Not suicide bombings. Not political crisis.

That is because it isn't traded, or backed, or valued in the same way that other currencies are. That will all change after the RV.

[Carrello]

It has to be held artificially in my opinion. How they do it I am not really sure.

I think you are right. There is no way the rate would not have flucuated with everything that has gone one.

Article already was posted yesterday

Did you learn anything either time?

And thank you twice.

[Francie26]

I think you are right. There is no way the rate would not have flucuated with everything that has gone one.

Did you learn anything either time?

And thank you twice.

hahaha See what I mean??!! You keep me laughing. Thanks for just being your own wonderful self. You always brightens my day!!

Francie,

General concenses is that the rate is maintained by what's called a dirty float. So yes it is artificial

Thank you much, unirod. Is "dirty float" simply a name, then, for currency which is artificially contrived.

[DrSC]

This is a sincere question...Has anyone ever seen anything in writing either from the government or CBI that there indeed will be a RV at some time in the future? I have been following this since the begining and have never seen anything official that states there will be a RV period!

[rapidrex]

It has to be held artificially in my opinion. How they do it I am not really sure.

Yes...I have read that it is held artificially or held at that price.

[zigmeister]

This is a sincere question...Has anyone ever seen anything in writing either from the government or CBI that there indeed will be a RV at some time in the future? I have been following this since the begining and have never seen anything official that states there will be a RV period!

As Dr. Shabibi stated, after someone asked him when would Iraq RV their currency. He said, "Even if I know this I cannot tell you."

In a nut shell if there was an RV Iraq CBI would be the last place you would hear it from. Period.

[yota691]

This is a sincere question...Has anyone ever seen anything in writing either from the government or CBI that there indeed will be a RV at some time in the future? I have been following this since the begining and have never seen anything official that states there will be a RV period!

Depends on who talking i guess some say RV some say RD RI LOP Wall paper, toilet paper scam