Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by PaulieThaGreat

The idea that they will take a few trillion more out and then reval....

Wasnt that Wm. Knowles' idea?

Well, I might be wrong but if you look at m2, it's down from 19t to 14t so I would assume they have taken 5t out of circulation to date. Don't bash me but I think I understand this being the case that with the m2 dropping that means less dinar circulating. Hope I'm right.

Originally Posted by Hardwood

Looking at the PDF's you cannot see whether they bought or sold dinars.

Only on the daily screen can you see that.

Makes it tough to track.

But looking at the current daily auction, it looks as if they're SELLING dinar, not buying it back as previously stated and hyped.

Wm. K can you explain in clear terms how to understand the daily auction page?

Thank you.

Number of banks 15 -----
Auction price selling dinar / US $ 1446 -----CBI selling dollars
Auction price buying dinar / US $ ------ -----CBI selling dinar
Amount sold at auction price (US $) 50.115.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 50.115.000 -----
Total offers for selling (US $) ------ -----

This is the CBI selling dollars, not dinar.

Originally Posted by Ranger III

If the amount actually in circulation (as distinguished from the amount
printed) at the beginning of this buy-back was 4.5 trillion dinar, as reports have indicated, then the circulation supply available has in effect been reduced by approximately 22% in just twelve auctions. At this rate they could possibly have the supply under two trillion in circulation by the end of the year.

That kind of limited and contained supply was the key to Kuwait's currency revaluation and may well wind up being the key to the Iraqi dinar's revaluation.

I hope so too... that amount that is ACTUALLY in circulation is SOOOO elusive...

This has always troubled me too...the buying/selling thing. Let's suppose that this is the CBI reporting it's dealings with banks...we can then look at it and see that 15 banks participated, and those 15 banks SOLD\ dinar to the CBI for dollars at a rate of 1446 per dollar. The Banks did not purchase dinar from the CBI. Total amount of the Dinars sold to the CBI by individual banks, or banking companies was equal to $50,115,000. In other words, the banks offered the dinar equivillent of$50,115,000. Part of this transaction was offered in cash, and the rest was offered in transfers.

Anybody with a better/different explanation, step up...

OSWoman

Announcement No.(810)

D.G. of Foreign Exchange Control

The 810 daily currency auction was held in the Central Bank of Iraq day Tuesday 2006 / 11/ 21 so the results were as follows :

Details Notes
Number of banks 15 -----
Auction price selling dinar / US $ 1446 -----
Auction price buying dinar / US $ ------ -----
Amount sold at auction price (US $) 50.115.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 50.115.000 -----
Total offers for selling (US $) ------ -----

Cash amounts sold to the bank and its customers were USD(15.345.000) at a rate of(1446+1+10=1457)IQD\USD .
The amount sold to make transfers abroad was USD (34.770.000) at a rate of (1446-2)+ one dinar as a bank fee and exempt the transferred amount from conversion fee.

Exchange Rates

Originally Posted by frathousemicrowave

Number of banks 15 -----
Auction price selling dinar / US $ 1446 -----CBI selling dollars
Auction price buying dinar / US $ ------ -----CBI selling dinar
Amount sold at auction price (US $) 50.115.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 50.115.000 -----
Total offers for selling (US $) ------ -----

This is the CBI selling dollars, not dinar.

And hence the confusion! "Auction price selling dinar / US $ 1446" Should read "Auction price selling Dollars" ???????

Your highlight in red states the opposite of what the line reads.

So how does this make sense?

Originally Posted by Hardwood

And hence the confusion! "Auction price selling dinar / US $ 1446" Should read "Auction price selling Dollars" ???????

Your highlight in red states the opposite of what the line reads.

So how does this make sense?

ITs from the 15 banks perspective, like was said above.

Announcement No.(810)

D.G. of Foreign Exchange Control

The 810 daily currency auction was held in the Central Bank of Iraq day Tuesday 2006 / 11/ 21 so the results were as follows :

Details Notes
Number of banks 15 -----
Auction price selling (dinar) / US $ 1446 -----
Auction price buying (dinar) / US $ ------ -----
Amount sold at auction price (US $) 50.115.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 50.115.000 -----
Total offers for selling (US $) ------ -----

Cash amounts sold to the bank and its customers were USD(15.345.000) at a rate of(1446+1+10=1457)IQD\USD .
The amount sold to make transfers abroad was USD (34.770.000) at a rate of (1446-2)+ one dinar as a bank fee and exempt the transferred amount from conversion fee.

Exchange Rates[/quote]

Perhaps if the parenthesis were put around the word dinar like US $, then it would be more clear.

Originally Posted by Hardwood

And hence the confusion! "Auction price selling dinar / US $ 1446" Should read "Auction price selling Dollars" ???????

Your highlight in red states the opposite of what the line reads.

So how does this make sense?

I think we're looking at it wrong...we assume the CBI is reporting its OWN actions--that's how I initially viewd it, but I think the CBI is reporting on the member bank's actions. The member banks sold dinar and purchased dollars...I think if we read it that way, it will make more sense.

I agree, I'm reading about the CBI I want to see them phrase it that CBI sold dollars and purchased dinars...imagine that....an Iraqi institution doing something counter to intuition...

Well it looks like it is moving in a positive direction for us....but it is very sloooooooooooooooowwwwww.

Kozmar