Central Bank intervenes in defense of Iraqi dinar

[cooperwaits]

So far, I am a big fan of 2012, and tomorrow is my birthday. Who knows what could happen!

Shelley, I am coming with the party hats!

Happy Birthday......

[Doctor Smith]

Thanks Carello,

I hope Zig isn't drinking my cocktail.

So, I'm not sure if this article is saying that they have put a permanent stop to the auctions, or just that they aren't doing one today as they are closed to put the finishing touches on the books for the year. Time will tell.

Yeah. For me it says they are finishing 2011. I definitely wouldn't jump to any conclusions from any of these articles.

[keepmwlknfny]

"Repeated cycle" easier said then done....what are they really doing/using the Dinar for??? & I find it hard to believe that they could truly manipulate the exchange rate on a daily basis....oh but wait.....I know how .....it's because there must be a "manageable" amount in circulation

What are they using dinar for? LOL what do you use the dollar for? What do you think our govt uses the dollar for? Its no different in Iraq.....while USD is being used in Iraq, its not overwhelming vs using the dinar.....

[jas428]

Thank you for the link. I had read that one and interpreted it as "temporarily closed while the banks settle things for end of year finances." I'd guess the auctions will start again when they get their books all finished up and ready to start the 2012 banking year. I was assumming there was another article that I missed. Thanks anyways!

[GotSix]

What are they using dinar for? LOL what do you use the dollar for? What do you think our govt uses the dollar for? Its no different in Iraq.....while USD is being used in Iraq, its not overwhelming vs using the dinar.....

What I'm using the dinar for hold on a minute...let me ask my wife ....

What are they using dinar for? LOL what do you use the dollar for? What do you think our govt uses the dollar for? Its no different in Iraq.....while USD is being used in Iraq, its not overwhelming vs using the dinar.....

On a serious note....then why are they sooo proud to be able to buy back enough to "keep" the rate

[MrFnHappy]

I put this out in another thread, forget the key financial indicators and other published financials.

It would seem most accept what the reported auctions are, and what the Iraqi budget is.

The CBI took in 250B dinars in a day, so in the average 30 day span they hold 20 auctions which could pull in as much as 5T dinar. If the GOI has a budget of a mere 70B USD annually (it's more, just using a low number to make a point), the GOI would need roughly 6.8T dinar monthly...where do these dinar come from? Is the CBI able to hold any dinar taken at auction back from circulation?

[FlyHi]

Could you explain these ("mass test" emails) please?

Certainly...it appears they are sending emails to all their clients (at once as a trial run)....they seem to be prepping for something

NewXXXXXX.com Mass Email Test #2!!!

THIS IS A MASS EMAIL TEST RUN #2.

PLEASE DO NOT REPLY TO THIS EMAIL

Thank-you for your cooperation....

I presume this is being done in much the same way that Adam is going to do for us at RV!!

[Sanssouci]

So far, I am a big fan of 2012, and tomorrow is my birthday. Who knows what could happen!

Happy birthday, Carrello.

[tigerstripes]

I put this out in another thread, forget the key financial indicators and other published financials.

It would seem most accept what the reported auctions are, and what the Iraqi budget is.

I meant to reply to this in the other thread.

Just a question on how it all works: (I'll figure it out one day)

The GOI receives $US for oil sales. They then sell the $US to the CBI for dinars for day to day payments and operations. The CBI is buying the dinars from the commercial banks and paying them in $US.

Do you know if all of the oil revenue goes to the CBI? Does the Ministry Of Finance hold any of it back for import costs like defense etc? Does the MOF even hold any money?

[GotSix]

I put this out in another thread, forget the key financial indicators and other published financials.

It would seem most accept what the reported auctions are, and what the Iraqi budget is.

Not a fair request at this time .....cause as you are aware...neither the CBI, GOI or their economists are in agreement of what the h--k is going on ..please refer to their daily articles

Edited January 3, 2012 by Markinsa
Repaired Quote Box

[Doctor Smith]

Certainly...it appears they are sending emails to all their clients (at once as a trial run)....they seem to be prepping for something

NewXXXXXX.com Mass Email Test #2!!!

Read more: http://dinarvets.com/forums/index.php?/topic/98017-central-bank-intervenes-in-defense-of-iraqi-dinar/page__st__80#ixzz1iMYFiv1e

Prepping for something or pumping for something?

[Shick]

YOU WOULD THINK THAT IF THE DINARS RV'S THE CBI WOULD HOLD AS MUCH USD AS THEY CAN, ESPECIALLY WHEN THE DINARS BEGAN TO COME IN FOR EXCHANGE, THE IRAQI PEOPLE WOULD HAVE MORE TO SPEND WHICH WOULD SPRUCE UP THE ECONOMY. MAKE SENSE TO ME.

[MrFnHappy]

I meant to reply to this in the other thread.

Just a question on how it all works: (I'll figure it out one day)

The GOI receives $US for oil sales. They then sell the $US to the CBI for dinars for day to day payments and operations. The CBI is buying the dinars from the commercial banks and paying them in $US.

Do you know if all of the oil revenue goes to the CBI? Does the Ministry Of Finance hold any of it back for import costs like defense etc? Does the MOF even hold any money?

Exactly what's happening.....be aware this is one of the ways the CBI's reserves grow, via the spread charged at the daily auctions.

I highly doubt all the oil revenues go to the CBI, and in fact used to go to the DFI. But now I'm sure the GOI keeps some USD to pay for things like military equipment. I'm sure the MOF and other branches of the GOI have a budget, but don't per say "hold' any money literally.

Edited January 3, 2012 by MrFnHappy

[tigerstripes]

I meant to reply to this in the other thread.

Just a question on how it all works: (I'll figure it out one day)

The GOI receives $US for oil sales. They then sell the $US to the CBI for dinars for day to day payments and operations. The CBI is buying the dinars from the commercial banks and paying them in $US.

Do you know if all of the oil revenue goes to the CBI? Does the Ministry Of Finance hold any of it back for import costs like defense etc? Does the MOF even hold any money?

Just to add an example of some numbers to that;

2010 figures were:

Export Revenues From sale Of Oils etc were a tick over US$51 billion.

CBI Purchases of Foreign Exchange from MOF was US$41 billion.

So is the cart before the horse? By that I mean, does the CBI purchase foreign exchange from the CBI based on the CBI's requirements, or does the GOI purchase dinars from the CBI based on the GOI requirements?

[MrFnHappy]

I should add that the majority of USD bought at auction is used for remittances....payment for goods and services being bought outside Iraq.

[MrFnHappy]

OK, apparently my earlier calculations may be off, but this is what I was talking about. In 2010 the GOI bought nearly 48T dinar from the CBI. That means that the average auction amount would have needed to be around 190-200B dinar per auction just to satisfy the demand of the GOI in 2010. At those rates, the CBI would be hard pressed to remove dinar from circulation.

[Carrello]

Thanks Carello,

I hope Zig isn't drinking my cocktail.

So, I'm not sure if this article is saying that they have put a permanent stop to the auctions, or just that they aren't doing one today as they are closed to put the finishing touches on the books for the year. Time will tell.

I b\

I am not in banking, but do central banks in other countries close over a weekend and plus a day to balance to books.

I bet those new De La Rue $1.5 million machines count bills really fast, and there were ten of them. I am just not buying that you close for days to close the books. There is no large corporation, with international sites, i.e. Boeing, that closes down to do the books. Does Microsoft close, Ford, General Electric? Central banks of businesses too. Can someone set me straight if I am off track. Teach me something about this, please.

[YourIntelSux]

Is there a way to figure out how much money there is in circulation by somehow using the 1/4 trillion sold at the auction and how many points the exchange rate changed to "stabilize" as Saleh puts it? I was Just brainstorming if there is maybe a back door way to get the amount in circulation but that's way over my head. any takers on that?

Edited January 3, 2012 by YourIntelSux

[Abarvets]

I b\

I am not in banking, but do central banks in other countries close over a weekend and plus a day to balance to books.

I bet those new De La Rue $1.5 million machines count bills really fast, and there were ten of them. I am just not buying that you close for days to close the books. There is no large corporation, with international sites, i.e. Boeing, that closes down to do the books. Does Microsoft close, Ford, General Electric? Central banks of businesses too. Can someone set me straight if I am off track. Teach me something about this, please.

got this from another thread, truthful did not give a link sorry.

Last year, the CBI was closed for 3 days consecutively, Jan. 1-3, no auctions reported.

Read more:

[Abarvets]

got this from another thread, truthful did not give a link sorry.

Last year, the CBI was closed for 3 days consecutively, Jan. 1-3, no auctions reported.

Read more:

I must amend as truthful corrected the information.

My apologizes. This is not accurate for 2011, I was looking at 2010.

Read more:

[Carrello]

Is there a way to figure out how much money there is in circulation by somehow using the 1/4 trillion sold at the auction and how many points the exchange rate changed to "stabilize" as Saleh puts it? I was Just brainstorming if there is maybe a back door way to get the amount in circulation but that's way over my head. any takers on that?

Many very informed individuals are trying to figure this out, and there has been no definitive answer. Only Shabibi knows. If you want to hear a conversation from some guys that really know this stuff, and have two hours to spend, (I thought it was interesting, but to each their own) go over the Chats and listen to a Scooter chat from 1-1-12. You can start at 24 minutes and get Iraq information, and BIW goes into detail about his very thing. On the call is Scooter, BIW, Enoch8, Proteus, and others. This group is a trip.

I must amend as truthful corrected the information.

My apologizes. This is not accurate for 2011, I was looking at 2010.

Read more:

Thank you. The plot thickens.

Edited January 3, 2012 by Carrello

[DinarDana]

........ plus it looks like they sucked enough dinar back in considering they are claiming no more buy back auctions. were in a good spot, it looks real good............enjoy

sonny1 I love it when you say this! This is my favorite all time quote in an article posted a few weeks ago. Yes! Suck dinar off the streets.

This is the term I use when my children get near me (can you hear the sucking sound?) yup that my kids sucking the money out of my pockets. LOL

[fnbplanet]

I b\

I am not in banking, but do central banks in other countries close over a weekend and plus a day to balance to books.

I bet those new De La Rue $1.5 million machines count bills really fast, and there were ten of them. I am just not buying that you close for days to close the books. There is no large corporation, with international sites, i.e. Boeing, that closes down to do the books. Does Microsoft close, Ford, General Electric? Central banks of businesses too. Can someone set me straight if I am off track. Teach me something about this, please.

I don't know......it could take a while, if you're all trying to use the same abacus......

[Francie26]

I don't know......it could take a while, if you're all trying to use the same abacus......

hahaha Charming comment!!

[keepmwlknfny]

OK, apparently my earlier calculations may be off, but this is what I was talking about. In 2010 the GOI bought nearly 48T dinar from the CBI. That means that the average auction amount would have needed to be around 190-200B dinar per auction just to satisfy the demand of the GOI in 2010. At those rates, the CBI would be hard pressed to remove dinar from circulation.

Thats what I was thinking as well.....

The GOI consumes and needs so much dinar, how could they possibly be removing dinar from circulation with the amounts needed to keep the country running....

And if they are removing some, it would need to be at a rate twice as fast as what is being put right back in....