Thread: Any thoughts

I saw this statement and didn't know what to make of it...was hoping to get some insightful discussion on this. Espcially the part I put in red.
Lower demand for the dollar in daily auction

Baghdad - Voices of Iraq
Wednesday , 21 /11 /2007 Time 12:38:54




Baghdad, Nov 21, (VOI) - Demand for the dollar was down in the Iraqi Central Bank’s auction on Wednesday, reaching $44.355 million compared to $70.780 million on Tuesday.

In its daily statement, the bank said it had covered all bids, including $6.880 million in cash and $37.475 in foreign transfers, at an exchange rate of 1,226 dinars per dollar, same as yesterday.
The 14 banks that participated in Wednesday's session offered to sell $15 million, the same amount offered for the fifth session in a row, which the bank bought at an exchange rate of 1,224 dinars per dollar.
In statements to the independent news agency Voices of Iraq (VOI), Ali al-Yasseri, a trader, envisioned a decline in the exchange rate on Thursday, which he said will positively affect the overall volume of dealings on Sunday.
The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

Originally Posted by PAn8tv

I saw this statement and didn't know what to make of it...was hoping to get some insightful discussion on this. Espcially the part I put in red.
Lower demand for the dollar in daily auction

Baghdad - Voices of Iraq
Wednesday , 21 /11 /2007 Time 12:38:54




Baghdad, Nov 21, (VOI) - Demand for the dollar was down in the Iraqi Central Bank’s auction on Wednesday, reaching $44.355 million compared to $70.780 million on Tuesday.

In its daily statement, the bank said it had covered all bids, including $6.880 million in cash and $37.475 in foreign transfers, at an exchange rate of 1,226 dinars per dollar, same as yesterday.
The 14 banks that participated in Wednesday's session offered to sell $15 million, the same amount offered for the fifth session in a row, which the bank bought at an exchange rate of 1,224 dinars per dollar.
In statements to the independent news agency Voices of Iraq (VOI), Ali al-Yasseri, a trader, envisioned a decline in the exchange rate on Thursday, which he said will positively affect the overall volume of dealings on Sunday.
The Iraqi Central Bank runs a daily auction from Sunday to Thursday.

His comments in the past have indicated that a drop in the exchange rate creates favorable conditions for the banks to increase the amount of dollars bought/dinars sold to the CBI. At least that's my take.

Originally Posted by One Oar

His comments in the past have indicated that a drop in the exchange rate creates favorable conditions for the banks to increase the amount of dollars bought/dinars sold to the CBI. At least that's my take.

Thanks One Oar...do you think it will be the, as of lately, customary 1 pip drop or something more substantial?

Originally Posted by PAn8tv

Thanks One Oar...do you think it will be the, as of lately, customary 1 pip drop or something more substantial?

I think a lot of us were hoping to see something similar to last year where we dropped 152 points from 9/3 to 12/28. We've read several times of the goal to get to 1200 by the end of 2007. We've got I think 25 auction days left. At 1 PIP per day, that would get us there. On the other hand, none of us really saw the 152 point drop coming at the end of last year. With all of the positive news coming out in the last few months along with much improved security, I think anything can happen at any time- or not. One thing that stands out to me is the continued signings of oil agreements by the Kurds. I think something has to give, and quickly, whether they decide to go with the old law (Hussein's), use the law that was originally approved earlier this year, or just kind of pick and choose. Shahristani even stated recently that Iraq could/would sign laws with or without a new HCL. I'll be curious to see what happens when they do sign the first new contract. Will they go ahead and start approving the Kurd's contracts?
Long winded answer for I don't know. Looks to be 1 pip/day, but we know with Iraq, I'll quote a veteran, absent poster: "With this lot, who knows."

Originally Posted by One Oar

I think a lot of us were hoping to see something similar to last year where we dropped 152 points from 9/3 to 12/28. We've read several times of the goal to get to 1200 by the end of 2007. We've got I think 25 auction days left. At 1 PIP per day, that would get us there. On the other hand, none of us really saw the 152 point drop coming at the end of last year. With all of the positive news coming out in the last few months along with much improved security, I think anything can happen at any time- or not. One thing that stands out to me is the continued signings of oil agreements by the Kurds. I think something has to give, and quickly, whether they decide to go with the old law (Hussein's), use the law that was originally approved earlier this year, or just kind of pick and choose. Talabani even stated recently that Iraq could/would sign laws with or without a new HCL. I'll be curious to see what happens when they do sign the first new contract. Will they go ahead and start approving the Kurd's contracts?
Long winded answer for I don't know. Looks to be 1 pip/day, but we know with Iraq, I'll quote a veteran, absent poster: "With this lot, who knows."

LOL...that was a fun time last year, really spoiled us. Thanks for the input. As talked about in other places , lets hope that everything is done and it won't be long now Happy Thanksgiving to all