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

[QUOTE=kiko;144118]The Iraqi Central sells seven million dollars and the American currency continues to decline
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

The Central Bank of Iraq said it sold during the auction today, Sunday, seven million dollars against 330 million one hundred thousand dollars during the meeting last Wednesday as there were on Thursday, the sale and purchase.

He added in a statement that the bank offers three banks participating today ERA dropped to $ 1 million compared with $ 2 million a hearing last Wednesday.

The statement said that the purchase orders were covered today by the Central at 1433 IQD, down 2 dinars compared to the rate on Wednesday, also central to buy all the sales presentations at the 1431 dinars to 1433 dinars.

He said on one Yasiri dealers in the auction Central Bank News Agency (Voices of Iraq) Independent that the reason for the limited purchase requests that the dollar is the dollar exchange rate in the local market from the lowest price in the Central Bank, where the purchase price is the market in 1410 and the sale price dinars 1420 dinars.

He pointed out that the purchase of the Central restricted to the large volume of transactions and urgent that the market is unable to provide the liquidity necessary.

What are they trying to say here? When you think about it, it goes something like this. The local banks still have the need to acquire dollars in order to pay for goods and services that are not local in nature. Yet they want to hold on to as many dinars as possible because they know that the reval is close at hand. The CBI is offering dollars but at a price of 1433 dinars. On the local market they are only asking 1410 dinars for a dollar. Any smart business man would pay the lesser amount to get the same value. What this tells us is that the local economy is now dictating the price of the dinar and the CBI will have to play catch up if they want to maintain control of the exchange rate. The CBI has done it's job so well they have created a demand side market for the dinar, with the anticipation that the Iraqi economy will make the transition from a two currency market to a single currency market dominated by the dinar. It must be a slight surprise to the managers at the CBI that the outside market for the dollar/dinar is moving independently from their official rate. This is very exciting. I wish they would have revaled over the weekend, but with this new twist on the daily auction, it adds a little more excitement to what is going to happen next. Can't wait to see what happens in the next four auctions this week !!

[QUOTE=Socata 850;144209]

Originally Posted by kiko

The Iraqi Central sells seven million dollars and the American currency continues to decline
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

The Central Bank of Iraq said it sold during the auction today, Sunday, seven million dollars against 330 million one hundred thousand dollars during the meeting last Wednesday as there were on Thursday, the sale and purchase.

He added in a statement that the bank offers three banks participating today ERA dropped to $ 1 million compared with $ 2 million a hearing last Wednesday.

The statement said that the purchase orders were covered today by the Central at 1433 IQD, down 2 dinars compared to the rate on Wednesday, also central to buy all the sales presentations at the 1431 dinars to 1433 dinars.

He said on one Yasiri dealers in the auction Central Bank News Agency (Voices of Iraq) Independent that the reason for the limited purchase requests that the dollar is the dollar exchange rate in the local market from the lowest price in the Central Bank, where the purchase price is the market in 1410 and the sale price dinars 1420 dinars.

He pointed out that the purchase of the Central restricted to the large volume of transactions and urgent that the market is unable to provide the liquidity necessary.

What are they trying to say here? When you think about it, it goes something like this. The local banks still have the need to acquire dollars in order to pay for goods and services that are not local in nature. Yet they want to hold on to as many dinars as possible because they know that the reval is close at hand. The CBI is offering dollars but at a price of 1433 dinars. On the local market they are only asking 1410 dinars for a dollar. Any smart business man would pay the lesser amount to get the same value. What this tells us is that the local economy is now dictating the price of the dinar and the CBI will have to play catch up if they want to maintain control of the echange rate. The CBI has done it's job so well they have created a demand side market for the dinar, with the anticipation that the Iraqi economy will make the transition from a two currency market to a single currency market dominated by the dinar. It must be a slight surprise to the managers at the CBI that the outside market for the dollar/dinar is moving independently from their official rate. This is very exciting. I wish they would have revaled over the weekend, but with this new twist on the daily auction, it adds a little more excitement to what is going to happen next. Can't wait to see what happens in the next four auctions this week !!

I have a question....if the exchange rate is better on the streets isn't that like a black market.....shouldn't the CBI reval the currency before they lose control...it sounds like the black market is taking control now.....am I wrong in understanding this??????

Indeed it does. Sometimes I wonder if this is their own internal way of doing the buisness too. Since it is not Global as yet. This maybe there way of the Internal Value. Just a thought.

Originally Posted by H2O_Lover

Could someone tell me what this article is getting at ??

Just spoke to SGS and she says its all good and to give you all a big

*****WoOT *****

Nope! I just find 'em.

Cheers!
DayDream

[QUOTE=Socata 850;144209]

Originally Posted by kiko

The Iraqi Central sells seven million dollars and the American currency continues to decline
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)

The Central Bank of Iraq said it sold during the auction today, Sunday, seven million dollars against 330 million one hundred thousand dollars during the meeting last Wednesday as there were on Thursday, the sale and purchase.

He added in a statement that the bank offers three banks participating today ERA dropped to $ 1 million compared with $ 2 million a hearing last Wednesday.

The statement said that the purchase orders were covered today by the Central at 1433 IQD, down 2 dinars compared to the rate on Wednesday, also central to buy all the sales presentations at the 1431 dinars to 1433 dinars.

He said on one Yasiri dealers in the auction Central Bank News Agency (Voices of Iraq) Independent that the reason for the limited purchase requests that the dollar is the dollar exchange rate in the local market from the lowest price in the Central Bank, where the purchase price is the market in 1410 and the sale price dinars 1420 dinars.

He pointed out that the purchase of the Central restricted to the large volume of transactions and urgent that the market is unable to provide the liquidity necessary.

What are they trying to say here? When you think about it, it goes something like this. The local banks still have the need to acquire dollars in order to pay for goods and services that are not local in nature. Yet they want to hold on to as many dinars as possible because they know that the reval is close at hand. The CBI is offering dollars but at a price of 1433 dinars. On the local market they are only asking 1410 dinars for a dollar. Any smart business man would pay the lesser amount to get the same value. What this tells us is that the local economy is now dictating the price of the dinar and the CBI will have to play catch up if they want to maintain control of the exchange rate. The CBI has done it's job so well they have created a demand side market for the dinar, with the anticipation that the Iraqi economy will make the transition from a two currency market to a single currency market dominated by the dinar. It must be a slight surprise to the managers at the CBI that the outside market for the dollar/dinar is moving independently from their official rate. This is very exciting. I wish they would have revaled over the weekend, but with this new twist on the daily auction, it adds a little more excitement to what is going to happen next. Can't wait to see what happens in the next four auctions this week !!

But 1410 is the higher amount! The banks price of 1433 is lower (less value per dollar) than the street rate. Am I wrong here?

[QUOTE=Mike5200;144213]

Originally Posted by Socata 850

But 1410 is the higher amount! The banks price of 1433 is lower (less value per dollar) than the street rate. Am I wrong here?

You've got it backwards. Remember they are buying dollars with dinars. The fewer dinars they have to pay for a dollar the better it is for them. They want to retain dinars just like all of us.

[QUOTE=CharmedPiper;144210]

Originally Posted by Socata 850

I have a question....if the exchange rate is better on the streets isn't that like a black market.....shouldn't the CBI reval the currency before they lose control...it sounds like the black market is taking control now.....am I wrong in understanding this??????

The Black Market rate has ALWAYS been a concern for the CBI. But it looks like even their supply is running out...seems a good time to r/v to me.

Cheers!
DayDream

#129 (permalink) Today, 12:47 PM - [add post to favorites]
Mike5200
Senior Member
Location: Libertyville Illinois (40 mi north of Chicago)
Interests: Internet Surfing Walking ,,gardening ,Drives in country

"But 1410 is the higher amount! The banks price of 1433 is lower (less value per dollar) than the street rate. Am I wrong here?"

Mike,

What it is saying is that for those who need dollars they only have to pay 1410 dinars for $1 on the street, whereas they have to pay 1433 at the CBI rate. So who are they gonna buy from ?

CapeK

Originally Posted by CapeK

#129 (permalink) Today, 12:47 PM - [add post to favorites]
Mike5200
Senior Member
Location: Libertyville Illinois (40 mi north of Chicago)
Interests: Internet Surfing Walking ,,gardening ,Drives in country

"But 1410 is the higher amount! The banks price of 1433 is lower (less value per dollar) than the street rate. Am I wrong here?"

Mike,

What it is saying is that for those who need dollars they only have to pay 1410 dinars for $1 on the street, whereas they have to pay 1433 at the CBI rate. So who are they gonna buy from ?

CapeK

THAT IS EXACTLY RIGHT !!

Originally Posted by ozizoz

I dont care what the reval is. Once it becomes truely internationally traded, the market will set the price, assuming they dont peg.

Would I take a .14 reval . . .you bet your arse. Would I cash out everything . . .he!! no. I might cash out one mill to pay off the debt load and wait to see where it goes . . .but I am confident that we are looking much higher . . . and there is definitely support for a $2 reval

I am hoping for the next two weeks for that train to unload at the station, but then again I have said that every two weeks since July 06 :)

I am with you Oz!

I am here in LA, too!

I will be on the same train!

I just keep buying, too!

Just keep the faith!