DINAR UPDATES 4-10-16
Post From Dinar Updates
Chat Room Excerpts & Highlights
Dinar Updates Sunday AM Chat 4-10-16 Part 3 of 3
rcookie says to Hutch():GONNA PUT UP SOME INFO ABOUT AUCTIONS....SO WHEN SOME OF THE COMMENTS THAT HOLLY'S BANKERS BRING IN HAVE SOME PERSPECTIVE AND CLARITY...
rcookie says():the Central Bank of Iraq regulates the flow of money through controlled auctions
rcookie says():this is not normal. In most other countries, money can be easily exchanged into a number of currencies at the will and whim of any citizen. The exchange rates are allowed to move freely according to the forces of supply and demand, interest rates, etc.
Soonergirlie says():ok, i see now
rcookie says():“Every day since 2004, the CBI has held an auction through which hard currency is sold to banks, companies and traders in exchange for evidence of import and transaction receipts. The auctions aim to prevent market speculation and stabilize the exchange rate of Iraqi dinars to the US dollar
~~~
Post From Dinar Updates
Chat Room Excerpts & Highlights
Dinar Updates Sunday AM Chat 4-10-16 Part 3 of 3
rcookie says to Hutch():GONNA PUT UP SOME INFO ABOUT AUCTIONS....SO WHEN SOME OF THE COMMENTS THAT HOLLY'S BANKERS BRING IN HAVE SOME PERSPECTIVE AND CLARITY...
rcookie says():the Central Bank of Iraq regulates the flow of money through controlled auctions
rcookie says():this is not normal. In most other countries, money can be easily exchanged into a number of currencies at the will and whim of any citizen. The exchange rates are allowed to move freely according to the forces of supply and demand, interest rates, etc.
Soonergirlie says():ok, i see now
rcookie says():“Every day since 2004, the CBI has held an auction through which hard currency is sold to banks, companies and traders in exchange for evidence of import and transaction receipts. The auctions aim to prevent market speculation and stabilize the exchange rate of Iraqi dinars to the US dollar
~~~
rcookie says():The purpose of these auctions is to control the IQD:USD exchange rate by controlling the amount of USD circulating in Iraq. At these auctions, USD is issued exclusively to banks, companies and traders for the purpose of conducting business transactions with foreign entities (ie: importers, securities traders, banks, etc).
rcookie says():By controlling the amount of USD available in Iraq, the Iraqi government controls the value of the USD relative to its own currency, thereby stabilizing the dinar. It is as close as you can get to an outright currency peg.
rcookie says():Cracking Down on Auction Abuses
Things were going really great for years, until evidence turned up that some buyers at these auctions were falsifying their transaction receipts, enabling them to purchase more USD than their business activity legitimately entitled them to have.
Hutch says to rcookie():trying to keep it clean while allowing them to conduct business
rcookie says():The government believes much of the excess dollars purchased were smuggled across the border into Iran, which has a shortage of hard international currency due to sanctions. Money laundering and black market demand account for the remainder of auction abuses.
rcookie says():The supply/demand ratio dictates that the more supply you have of something, the cheaper its value. More USD in circulation than previously thought meant a cheaper USD, which meant a stronger dinar.
rcookie says():“The CBI prohibited any bank or company with capital of less than $400,000 from taking part in the currency auction. Additionally, all participants had to submit their [transaction receipts] to the criminal division in the Ministry of Interior, the economic crime unit and the money-laundering division of the CBI for approval.”
rcookie says():Reducing the number of buyers at the auctions meant reducing the amount of USD making it into circulation, strengthening the USD relative to the Iraqi dinar, and weakening the dinar back to that desired target level.
rcookie says():Anger Over Weakening Dinar
Iraqi citizens and businesses who do not have dealings with foreign entities are understandably angered by CBI controls aimed at keeping the dinar weak. A weak currency means citizens and businesses need to pay more for goods and services, especially since so many goods are still being imported from abroad.
rcookie says():Amin Abbas stressed to Al-Monitor that the CBI must take “full responsibility for the fall of the … Iraqi dinar … because of its restrictive measures in granting permits to exchange companies.” And Mohammed Khalil, an official on Iraq’s Economic and Investment Committee, accused the CBI of deliberately “hinder[ing] the flow of US dollars into the market.”
rcookie says():Others are pinning the blame on Iraqi banks, as Al-Monitor informs:
“Hussein al-Yasiri said some banks have stopped selling dollars to regular customers and instead have been selling them to exchange companies. This has prompted Iraqis to buy dollars from the exchange companies at prices favorable to the companies. The exchanges are not subject to government monitoring
rcookie says():NO CONTROL OVER THE VIGS!!!!!!!!!
rcookie says():And Iranian involvement is still suspected by Ahmed al-Alwani, head of the Iraqi parliament’s economic committee, who believes Iran is supplying Iraqi partners with false trade receipts in order to obtain USD from the auctions.
Hutch says to rcookie():still trying to beat the system
rcookie says():But Ahmed Bureihi, a former senior official at the CBI, denied such accusations. “Iran has nothing to do with the increased exchange rate,” he told Al-Monitor. “The CBI sells foreign currency to Iraqi customers to be used in funding trade transactions outside the country.” “There are Iraqi traders who defraud the CBI and provide counterfeit documents of virtual imports to Iraq. However … this has nothing to do with political issues.”
rcookie says():THAT IS CALLED THE PINOCCHIO EFFECT.......LOL
rcookie says():HIGHLY TECHNICAL ECONOMIC TERM.....LOL
puffdragon says to rcookie():I dont understand Rcookie ({)(@)
rcookie says():On the dinar’s side of that equation, as more oil is exported, more revenue is generated, and the nation becomes wealthier “per capita”. Enabled by this increased wealth, the government starts funding sorely needed rebuilding and expansion projects on infrastructure, energy, education, health care, and industry. In so doing, it pumps more of its local currency into circulation, which in turn weakens it.
This is a valid explanation for the stronger USD and weaker IQD. However, what the CBI is reluctant to admit is that apart from these increased oil revenues, the government is controlling the dinar’s exchange rate by controlling the amount of USD in circulation via its daily auctions.
Dr Dave says():A year ago their auctions were often over 200 million with 10-12 banks not the 30 banks like today
rcookie says():THAT IS EXACTLY WHAT THEY ARE SAYING...
Dr Dave says():slow on the up take
rcookie says():AND WHERE IS THAT CURRENCY...
rcookie says():HOW DID IT GET OUTSIDE IRAQS BORDERS...
Dr Dave says():Shell co's?
Dr Dave says():Ask Allawi he may know
rcookie says():THEIR LEGITIMATE TRADE NUMBERS DO NOT JIVE WITH OIL SALES OR THE CURRENCY LIQUIDITY CRISIS IN THE MARKETPLACE....
rcookie says():THIS IS WHY THE CURRENT TIGHTENING INSTRUMENTS AND ACTIONS ARE ONGOING.....
Dr Dave says():Tightening instruments.......Tuner???.......Sadr will do this
rcookie says():CITIZENS CAN NOW PURCHASE CURRENCY IN RAFIDAIN AUCTION WINDOWS DIRECTLY...AT A CBI CONTROLLED AND CAPPED RATE AND DIFFUSE THE STRENGTH AND OPTION OF PARALLEL MARKETS WITH INFLATED RATES...
rcookie says():THIS IS EXTREMELY IMPORTANT RELATIVE TO THE 2% SPREAD...INTEGRAL TO ARTICLE VIII OBLIGATIONS.....
Baxter says():Rcookie... are they within the 2% spread now?
rcookie says():TIGHTENI NG INSTRUMENTS....75% VOLUME REDUCTION...WINDOWS TO CITIZENS FOR DIRECT PURCHASE AT NEWLY OPENED 1 STOP SHOP RAFIDAIN BANKS....
LIMITATIONS ON CURRENCY LEAVING COUNTRY BY TRAVELERS...STUDENTS OR PEOPLE RECEIVING MEDICAL TREATMENTS...FROM 5000 TO 3000......TIGHTENING..
Dr Dave says():3000 dinar......for medical tx......a bandaide?
Dr Dave says():that is tight
Baxter says(2):what is that.. about 25 USD?
Dr Dave says():3.00
Baxter says():OH WOW>.
Baxter says():3 Bucks...
Baxter says():they can leave the country ... with 3 dollars?
Dr Dave says():get a million for a thousand
Dr Dave says():ish
rcookie says():STABILIZED ARRANGEMENT....
Classification as a stabilized arrangement entails a spot market exchange rate that remains within a margin of 2% for six months or more (with the exception of a specified number of outliers or step adjustments) and is not floating.
rcookie says():WITH EXCEPTION OF SPECIFIED NUMBER OF OUTLIERS OR STEP ADJUSTMENTS....
niterider says():Does anyone no if theirs going to be a call today at 4 eastern time ???
Dr Dave says():not 90 days like Kap suggests
Baxter says():well.. thats worse isnt it?
rcookie says():NOT A ALL OR NOTHING STIPULATION....
Dr Dave says():no
Dr Dave says():keep it within that spread
niterider says():thank you!!
Baxter says():Kap had a post last week that they were over 6% in the spread... whether thats true or not... I dont have a clue... I dont know how to figure it...
jeffusa says():(IraqiNews.com) al-Anbar – A security source in Anbar province said on Saturday, that the international coalition destructed a rockets launcher belonging to the ISIS west of the city of Ramadi.
The source said in a statement followed by IraqiNews.com, “The international coalition bombarded a rockets launcher and a machine gun called Hellfire belonging to the ISIS in al-Baghdadi Island north of al-Baghdadi vicinity (90 km west of Ramadi), resulting in the complete destruction of them and all the elements that were in charge of the detachment.”
The statement added, “The international coalition also bombed one of the ISIS sites in al-Baghdadi Island, resulting in killing seven ISIS elements, in addition to inflicting material and human losses upon them.”
rcookie says():IT IS NOT AN ALL OR NOTHING STIPULATION.....
wmawhite says to Baxter():Either do most people............all last summer people were crying about th eCBI's spread being out of wack.........well, read the IMF Technicla Letter of Intent,.....they said that as of August 2015 that the CBI spread was at 2%.
wmawhite says to Baxter():Technical*
Baxter says():WMA... is it still ? does it have to remain there... or what happens if it was at 2% and now its not...
wmawhite says to Baxter():So,........lets ask the question; regarding the central bank 2% requirement, who knows more about thhe subject,.......the IMF or a guru?
jeffusa says to wmawhite():if your the guru ...i'll take you (y)
jarhead says to jeffusa():SHUP old man
wmawhite says to Baxter():My point is this;........all last summer Kap was stating that the spread was out of wack,.....the IMF says it was not. Question,....who do you think knows more about the spread? Kap or the IMF?
jeffusa says to jarhead():you SHUP old dude
Baxter says():well... theIMF... im sure..
puffdragon says():Saw nightrider ask about a call today is that true and could someone tell me that time please !
wmawhite says to jeffusa():Thank you......but I really don't know anything......although I did stay at a Holiday Inn Express...........lol
jeffusa says to wmawhite():nice
jeffusa says to wmawhite():lol
rcookie says():By controlling the amount of USD available in Iraq, the Iraqi government controls the value of the USD relative to its own currency, thereby stabilizing the dinar. It is as close as you can get to an outright currency peg.
rcookie says():Cracking Down on Auction Abuses
Things were going really great for years, until evidence turned up that some buyers at these auctions were falsifying their transaction receipts, enabling them to purchase more USD than their business activity legitimately entitled them to have.
Hutch says to rcookie():trying to keep it clean while allowing them to conduct business
rcookie says():The government believes much of the excess dollars purchased were smuggled across the border into Iran, which has a shortage of hard international currency due to sanctions. Money laundering and black market demand account for the remainder of auction abuses.
rcookie says():The supply/demand ratio dictates that the more supply you have of something, the cheaper its value. More USD in circulation than previously thought meant a cheaper USD, which meant a stronger dinar.
rcookie says():“The CBI prohibited any bank or company with capital of less than $400,000 from taking part in the currency auction. Additionally, all participants had to submit their [transaction receipts] to the criminal division in the Ministry of Interior, the economic crime unit and the money-laundering division of the CBI for approval.”
rcookie says():Reducing the number of buyers at the auctions meant reducing the amount of USD making it into circulation, strengthening the USD relative to the Iraqi dinar, and weakening the dinar back to that desired target level.
rcookie says():Anger Over Weakening Dinar
Iraqi citizens and businesses who do not have dealings with foreign entities are understandably angered by CBI controls aimed at keeping the dinar weak. A weak currency means citizens and businesses need to pay more for goods and services, especially since so many goods are still being imported from abroad.
rcookie says():Amin Abbas stressed to Al-Monitor that the CBI must take “full responsibility for the fall of the … Iraqi dinar … because of its restrictive measures in granting permits to exchange companies.” And Mohammed Khalil, an official on Iraq’s Economic and Investment Committee, accused the CBI of deliberately “hinder[ing] the flow of US dollars into the market.”
rcookie says():Others are pinning the blame on Iraqi banks, as Al-Monitor informs:
“Hussein al-Yasiri said some banks have stopped selling dollars to regular customers and instead have been selling them to exchange companies. This has prompted Iraqis to buy dollars from the exchange companies at prices favorable to the companies. The exchanges are not subject to government monitoring
rcookie says():NO CONTROL OVER THE VIGS!!!!!!!!!
rcookie says():And Iranian involvement is still suspected by Ahmed al-Alwani, head of the Iraqi parliament’s economic committee, who believes Iran is supplying Iraqi partners with false trade receipts in order to obtain USD from the auctions.
Hutch says to rcookie():still trying to beat the system
rcookie says():But Ahmed Bureihi, a former senior official at the CBI, denied such accusations. “Iran has nothing to do with the increased exchange rate,” he told Al-Monitor. “The CBI sells foreign currency to Iraqi customers to be used in funding trade transactions outside the country.” “There are Iraqi traders who defraud the CBI and provide counterfeit documents of virtual imports to Iraq. However … this has nothing to do with political issues.”
rcookie says():THAT IS CALLED THE PINOCCHIO EFFECT.......LOL
rcookie says():HIGHLY TECHNICAL ECONOMIC TERM.....LOL
puffdragon says to rcookie():I dont understand Rcookie ({)(@)
rcookie says():On the dinar’s side of that equation, as more oil is exported, more revenue is generated, and the nation becomes wealthier “per capita”. Enabled by this increased wealth, the government starts funding sorely needed rebuilding and expansion projects on infrastructure, energy, education, health care, and industry. In so doing, it pumps more of its local currency into circulation, which in turn weakens it.
This is a valid explanation for the stronger USD and weaker IQD. However, what the CBI is reluctant to admit is that apart from these increased oil revenues, the government is controlling the dinar’s exchange rate by controlling the amount of USD in circulation via its daily auctions.
Dr Dave says():A year ago their auctions were often over 200 million with 10-12 banks not the 30 banks like today
rcookie says():THAT IS EXACTLY WHAT THEY ARE SAYING...
Dr Dave says():slow on the up take
rcookie says():AND WHERE IS THAT CURRENCY...
rcookie says():HOW DID IT GET OUTSIDE IRAQS BORDERS...
Dr Dave says():Shell co's?
Dr Dave says():Ask Allawi he may know
rcookie says():THEIR LEGITIMATE TRADE NUMBERS DO NOT JIVE WITH OIL SALES OR THE CURRENCY LIQUIDITY CRISIS IN THE MARKETPLACE....
rcookie says():THIS IS WHY THE CURRENT TIGHTENING INSTRUMENTS AND ACTIONS ARE ONGOING.....
Dr Dave says():Tightening instruments.......Tuner???.......Sadr will do this
rcookie says():CITIZENS CAN NOW PURCHASE CURRENCY IN RAFIDAIN AUCTION WINDOWS DIRECTLY...AT A CBI CONTROLLED AND CAPPED RATE AND DIFFUSE THE STRENGTH AND OPTION OF PARALLEL MARKETS WITH INFLATED RATES...
rcookie says():THIS IS EXTREMELY IMPORTANT RELATIVE TO THE 2% SPREAD...INTEGRAL TO ARTICLE VIII OBLIGATIONS.....
Baxter says():Rcookie... are they within the 2% spread now?
rcookie says():TIGHTENI NG INSTRUMENTS....75% VOLUME REDUCTION...WINDOWS TO CITIZENS FOR DIRECT PURCHASE AT NEWLY OPENED 1 STOP SHOP RAFIDAIN BANKS....
LIMITATIONS ON CURRENCY LEAVING COUNTRY BY TRAVELERS...STUDENTS OR PEOPLE RECEIVING MEDICAL TREATMENTS...FROM 5000 TO 3000......TIGHTENING..
Dr Dave says():3000 dinar......for medical tx......a bandaide?
Dr Dave says():that is tight
Baxter says(2):what is that.. about 25 USD?
Dr Dave says():3.00
Baxter says():OH WOW>.
Baxter says():3 Bucks...
Baxter says():they can leave the country ... with 3 dollars?
Dr Dave says():get a million for a thousand
Dr Dave says():ish
rcookie says():STABILIZED ARRANGEMENT....
Classification as a stabilized arrangement entails a spot market exchange rate that remains within a margin of 2% for six months or more (with the exception of a specified number of outliers or step adjustments) and is not floating.
rcookie says():WITH EXCEPTION OF SPECIFIED NUMBER OF OUTLIERS OR STEP ADJUSTMENTS....
niterider says():Does anyone no if theirs going to be a call today at 4 eastern time ???
Dr Dave says():not 90 days like Kap suggests
Baxter says():well.. thats worse isnt it?
rcookie says():NOT A ALL OR NOTHING STIPULATION....
Dr Dave says():no
Dr Dave says():keep it within that spread
niterider says():thank you!!
Baxter says():Kap had a post last week that they were over 6% in the spread... whether thats true or not... I dont have a clue... I dont know how to figure it...
jeffusa says():(IraqiNews.com) al-Anbar – A security source in Anbar province said on Saturday, that the international coalition destructed a rockets launcher belonging to the ISIS west of the city of Ramadi.
The source said in a statement followed by IraqiNews.com, “The international coalition bombarded a rockets launcher and a machine gun called Hellfire belonging to the ISIS in al-Baghdadi Island north of al-Baghdadi vicinity (90 km west of Ramadi), resulting in the complete destruction of them and all the elements that were in charge of the detachment.”
The statement added, “The international coalition also bombed one of the ISIS sites in al-Baghdadi Island, resulting in killing seven ISIS elements, in addition to inflicting material and human losses upon them.”
rcookie says():IT IS NOT AN ALL OR NOTHING STIPULATION.....
wmawhite says to Baxter():Either do most people............all last summer people were crying about th eCBI's spread being out of wack.........well, read the IMF Technicla Letter of Intent,.....they said that as of August 2015 that the CBI spread was at 2%.
wmawhite says to Baxter():Technical*
Baxter says():WMA... is it still ? does it have to remain there... or what happens if it was at 2% and now its not...
wmawhite says to Baxter():So,........lets ask the question; regarding the central bank 2% requirement, who knows more about thhe subject,.......the IMF or a guru?
jeffusa says to wmawhite():if your the guru ...i'll take you (y)
jarhead says to jeffusa():SHUP old man
wmawhite says to Baxter():My point is this;........all last summer Kap was stating that the spread was out of wack,.....the IMF says it was not. Question,....who do you think knows more about the spread? Kap or the IMF?
jeffusa says to jarhead():you SHUP old dude
Baxter says():well... theIMF... im sure..
puffdragon says():Saw nightrider ask about a call today is that true and could someone tell me that time please !
wmawhite says to jeffusa():Thank you......but I really don't know anything......although I did stay at a Holiday Inn Express...........lol
jeffusa says to wmawhite():nice
jeffusa says to wmawhite():lol
jeffusa says():ERBIL, Kurdistan Region – More than 11,000 families have returned to areas of Iraq’s Anbar province that have been liberated from the Islamic State (ISIS) group, an Iraqi official said.
“During the past days, more than 11,000 families returned to the liberated areas in the province,” Ibrahim Awsaij, mayor of Anbar’s capital, Ramadi, told reporters on Saturday.
The families will be settled in the neighborhoods of Tamim, al- Qatana, al-Malab and al-Andalws in Ramadi, he said.
"So far, the number has risen to 11,150 families," who have returned, the mayor added.
In December, the Iraqi army said it had defeated ISIS in Ramadi and that it had taken control of government buildings in the city center.
jeffusa says():The mayor said that a special committee has been formed to investigate the identities of returned families, presumably to ensure that there are no ISIS militants hiding among them.
The Iraqi army, backed by US air support, retook a vast majority of Ramadi from ISIS seven months after it fell to the militants. But ISIS still controls pockets of resistance in the westernmost parts of Anbar, namely Qaim.
In Anbar, Iraqi forces also have been advancing in the small Ramadi town of Hit, where they say they have captured several districts and liberate 1,000 families held hostage by ISIS.
http://ift.tt/1UVVNeU; bad link
puffdragon says to niterider():TY nightrider
wmawhite says to Baxter():OK..........now, concerning the spread, I would think that they are communicating with the CBI and the CBI is doing exactly what they ought to be doing, based upon last year.
rcookie says():The required margin of stability can be met either with respect to a single currency or a basket of currencies, where the anchor currency or the basket is ascertained or confirmed using statistical techniques.
Classification as a stabilized arrangement requires that the statistical crite- ria are met and that the exchange rate remains stable as a result of official action (including structural market rigidities). The classification does not imply a policy commitment on the part of the country authorities.
“During the past days, more than 11,000 families returned to the liberated areas in the province,” Ibrahim Awsaij, mayor of Anbar’s capital, Ramadi, told reporters on Saturday.
The families will be settled in the neighborhoods of Tamim, al- Qatana, al-Malab and al-Andalws in Ramadi, he said.
"So far, the number has risen to 11,150 families," who have returned, the mayor added.
In December, the Iraqi army said it had defeated ISIS in Ramadi and that it had taken control of government buildings in the city center.
jeffusa says():The mayor said that a special committee has been formed to investigate the identities of returned families, presumably to ensure that there are no ISIS militants hiding among them.
The Iraqi army, backed by US air support, retook a vast majority of Ramadi from ISIS seven months after it fell to the militants. But ISIS still controls pockets of resistance in the westernmost parts of Anbar, namely Qaim.
In Anbar, Iraqi forces also have been advancing in the small Ramadi town of Hit, where they say they have captured several districts and liberate 1,000 families held hostage by ISIS.
http://ift.tt/1UVVNeU; bad link
puffdragon says to niterider():TY nightrider
wmawhite says to Baxter():OK..........now, concerning the spread, I would think that they are communicating with the CBI and the CBI is doing exactly what they ought to be doing, based upon last year.
rcookie says():The required margin of stability can be met either with respect to a single currency or a basket of currencies, where the anchor currency or the basket is ascertained or confirmed using statistical techniques.
Classification as a stabilized arrangement requires that the statistical crite- ria are met and that the exchange rate remains stable as a result of official action (including structural market rigidities). The classification does not imply a policy commitment on the part of the country authorities.
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