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

Originally Posted by Wm.Knowles

Yes I agree. Would it not be reasonale to think that they started removing the currency ( a couple of months before) in some amount prior to allowing the rate to adjust. See, this makes sense to be and establishes a pattern of a plan to intervene in the economy to reduce the base money supply. One that started before we as a group really noticed what was happening. Thank You.

Well now that brings up another good point, does the CBI authority to declare a level or are they locked into a forumla? To me there does not seem to be a direct link on a percentage basis. Historically we have witnessed political will exercised on an exchange rate.

I would conclude that once a real level is established that proper market forces and principles could then apply.

Originally Posted by worf

Quote:
Originally Posted by worf
So if you are right, then we would be close to where they were before they issued the new currency, the old currency circulation around 4 - 6 trillion? If this is so, then it looks good for this week to at least return to where they were before, that being 1 nid = .31.

worf


I agree with the sanctions off the value is probably actually much higher. I have maintained that "you have to learn to crawl before you can walk, learn to walk before you can learn to run." With this being said, I believe they will start off low hopefully at least .31 and flush out as much from the "indirect ivestors" (us) for 3 - 6 months then move on up or at least let the forex market pressure it up from there.

That being said, if you would like to prove me wrong and call Shabibi and say: "This is wciappetta from the rolclub. I was discussing with some other forum members your current situation concerning your undervalued dinar. Worf seems to think that you will start out at around .31 usd, I think it should be much higher say around 1.47. To prove Worf wrong, would you please just quit facking around and r/v it at at least 1.47? Everyone knows it is much more valuable than this!!"

worf

Yes, and make sure to let us all know how the call went OK?

Originally Posted by wciappetta

Well now that brings up another good point, does the CBI authority to declare a level or are they locked into a forumla? To me there does not seem to be a direct link on a percentage basis. Historically we have witnessed political will exercised on an exchange rate.

I would conclude that once a real level is established that proper market forces and principles could then apply.

And this makes perfect sense. In the back of my mind I continue to hold the thought about the CBI keeping two sets of books; one with the "previous rate". If we only knew which rate they are referring to ($0.31 or $3.22).

Either way we would be in great shape.

Originally Posted by Alphamystic

And this makes perfect sense. In the back of my mind I continue to hold the thought about the CBI keeping two sets of books; one with the "previous rate". If we only knew which rate they are referring to ($0.31 or $3.22).

Either way we would be in great shape.

At this point, they just need to R/V. I'll take either or something in between to start with.

I went back over past auctions that Voices of Iraq usually post for Tuesday October 3rd through Monday October the 16th to see what we could determine from it. Hope it helps to see if anything was snuck under our noses. Seems to me the rate was changing even then.

Tuesday, 03 October 2006

The decline in the volume of trading and increase in the dollar rate
Dargham of Muhammad Ali
Baghdad - (Voices of Iraq)
Decreased demand for the dollar in a meeting today, Tuesday, auction of the Central Bank of Iraq, recording 44 million and 875 thousand dollars, compared to 57 million yesterday, down $ 13 million. Distributed by the volume of demand, according to the bulletin issued by the bank today, with 23 million and 545 thousand dollars in cash and 21 million and 330 thousand dollars in the form of remittances outside the country.
The bank has full coverage at the exchange rate of 1473 dinars, which is the highest at one dinar on the exchange rate yesterday, which recorded 1472 dinars, which did not make any of the participating banks, the 13 banks in the auction, any offers to sell the dollar.

Wednesday, 04 October 2006

High demand for the dollar and exchange rate stability
Baghdad - (Voices of Iraq)
Increased demand for the American dollar in the auction the Central Bank of Iraq today, Wednesday, recording 49 million and 575 thousand dollars, compared with 44 million on Tuesday.
A statement by the central Iraqi requests to buy the dollar today among the 20 million and 535 thousand dollars in cash and 29 million and 40 thousand dollars in the form of remittances outside Iraq.
He pointed out that Central had covered all requests for the 12 participating banks ERA today and the exchange rate of 1473 dinars unchanged from the price yesterday.
The statement said that Central has not received any offers to sell the dollar

Thursday, 05 October 2006

A decline in demand for the dollar in the Central Bank
Decreased demand for the dollar purchase auction in the Central Bank of Iraq today, Thursday, at the conclusion of the meetings of the week, recording the volume of the requested 45 million and 890 thousand dollars Mcail 49 million in the meeting yesterday, Wednesday

Sunday, 08 October 2006

The Iraqi Central sells $ 74 million today
Baghdad - (Voices of Iraq)
Record demand for the dollar purchase auction in the Central Bank of Iraq at the beginning of this week's meetings today, Sunday, a big rise up to 74 million and 365 million from 49 million and 535 thousand dollars a hearing last Thursday.
A statement by the central Iraqi requests to buy dollars spread between 33 million and 105 thousand dollars in cash and 41 million and 260 thousand dollars in the form of remittances outside Iraq.
He pointed out that Central had covered the applications at the exchange rate of 1473 dinars to the dollar unchanged from the rate of last Thursday's meeting.
He attributed the Yasiri, owner of the Exchange News Agency (Voices of Iraq) Independent substantial rise in the volume of demand today, and 25 million of countries to the approach of the Eid al-Fitr holiday, and the consequent high demand for the American currency, providing the requirements of the feast.
He added that the second reason is the deteriorating security situation, which leads to the families travel outside the country and to transfer its funds in the form of foreign currency, the third reason is that today's meeting is the opening week after the cessation of the auction two days Therefore, where demand is high.

Monday 09 October 2006

Decreased demand for the dollar purchase auction in the Central Bank of Iraq at a meeting today, Monday, recording 69 million and 980 thousand dollars compared to 74 million dollars in a meeting yesterday, Sunday,.
Despite the decline of about four million dollars from yesterday but the demand is still high compared to the rates recorded by the auction last week.
The bulletin issued by the Central Bank on the status of the auction, that the purchase orders were distributed between 29 million and 870 thousand dollars in cash, while the remaining 40 million and 110 million remaining in the form of remittances outside the country, and the bank will cover all the applications at the exchange rate of 1472 dinars to the dollar, a point lower than the exchange rate yesterday of 1473 dinars to the dollar, which did not make any of the banks of the 14 participating in the auction, offers to sell the dollar to the bank.

No Post for 10 October 2006

Wednesday, October 11, 2006

The stability of the demand for the dollar in an auction Central Bank
Baghdad - (Voices of Iraq)
Demand for the dollar stabilized in the auction the Central Bank of Iraq today, Wednesday, recording the volume reached 53 million and 505 thousand dollars compared to 53 million and 10 thousand dollars yesterday, Tuesday,.
The periodic bulletin issued by the bank that the purchase orders were distributed by 26 million and 255 thousand dollars in cash and 27 million and 250 thousand dollars in the form of remittances outside the country.
The Bank had covered all purchase orders at the exchange rate amounted to 1471 dinars to the dollar exchange rate which is the same yesterday, which is considered the minimum for the dollar during this year did not make any of the 15 banks participating in the auction, offers to sell the dollar to the bank.

Thursday, October 12, 2006

The continuing high rate of the dinar indexation

The exchange rate of the Iraqi dinar to rise today, Thursday, at the dollar figure is the highest recorded this year in an auction the Central Bank of Iraq in 1470 dinars.
Volume increased demand for the dollar purchase auction Central Bank at the end of meetings this week, recording the volume of the request amounted to 58 million and 810 thousand dollars by 24 million and 750 thousand dollars in cash and 34 million and 60 thousand dollars in the form of remittances outside the country, the World Ptgtabtha fully exchange rate of 1470 dinars, the lowest point on the exchange rate yesterday of 1471 Dbenara did not make any of the banks of the 15 participating today offers to sell the dollar.

No Post for Sunday 15, 2006

Monday, October 16, 2006

A decline in demand for dollar purchase auction Central Bank

Decreased demand for the dollar today, Monday, the second in the Central Bank of Iraq auction this week, recording the volume of 43 million 800 thousand dollars, down from yesterday, which amounted to 46 million dollars.
Such purchase orders between 18 million and 690 thousand dollars in cash and 25 million and 110 thousand dollars in the form of remittances outside the bank fully covered by a fixed rate of exchange for the third consecutive year in 1470 dinars to the dollar.
Did not make any of the ten banks participating in the auction, offers to sell the dollar to the bank.


Cheers!
DayDream

I have a Question for all who say they are TAKING dinar from circulation. Where does the CBI get their dollars to Auction off?

Originally Posted by Elfwizard

I have a Question for all who say they are TAKING dinar from circulation. Where does the CBI get their dollars to Auction off?

By your question it seems that you believe that we are the only ones saying this. You have read ALL the articles that have been posted saying that this is EXACTLY what they are doing haven't you? IMO it makes no difference where the dollar comes from...just that dinar is being removed.

Cheers!
DayDream

Originally Posted by Elfwizard

I have a Question for all who say they are TAKING dinar from circulation. Where does the CBI get their dollars to Auction off?

Good question,

Simply put, all oil is sold for dollars, so since 95% plus percent of revenues comes from oil sales, there is an unending supply of dollars coming into Iraq every day.

Happy Holiday Season to all, Mike

Originally Posted by Alphamystic

And this makes perfect sense. In the back of my mind I continue to hold the thought about the CBI keeping two sets of books; one with the "previous rate". If we only knew which rate they are referring to ($0.31 or $3.22).

Either way we would be in great shape.

Yes you are right and the figure is .31 ID per one USD

New Page 1

Quote:"I would to inform all the stockholders of Baghdad Bank that the report of the managing council 2004 was prepared according to the demands of Central Bank of Iraq to balance US dollar price to 0.310 ID"

I posted this awhile back when Adster was curious about when the auctions started.

An Auction As The Solution
The solution was to introduce a foreign exchange auction. This was kick-started by the CBI selling a small amount of its foreign exchange reserves to the market. Thereafter, the auction rate could be used for MoF dollar sales to the CBI (so that it would be a genuine market rate, rather than something based on a straw poll of street exchanges); and the market could bid for dollars in the auction to meet the level of demand. If demand was excessive, the rate would adjust.
We were aware that, once the new currency was available, the MoF would be selling several hundred million dollars a month to the CBI, and that auctions could easily exceed $10mn a time as the domestic demand generated by government expenditure (payment of salaries, pensions etc) fed though to import demand (since many consumer goods had to be imported), and thus demand for foreign currency. It was important to prepare the market for the auction system, and ideally to have a mechanism up and running, before the amounts became large. This meant starting in early October at the latest.

The Foreign Exchange Auction In Iraq

Pretty much says where the dollar comes from. Hope this helps.

Cheers!
DayDream