CBI announcement.

[Adster]

The Iraqi Central Bank announced its readiness to buy dollars

(Voice of Iraq) - 11-29-2006
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The Republic of Iraq
Council of Ministers-the governmental communications
Media Relations
Press Release Press release /
Wednesday, 11-29-2006


The Iraqi Central Bank announced its readiness to buy the dollar


An official source at the Central Bank of Iraq is ready to buy the dollar in cash and through the foreign currency auction to be held daily.

The source added : The purchase price is determined on the basis of the sale price of dollar cash in the auction only minus 2 dinars.

[ordinario]

Adster, "An official source at the Central Bank of Iraq is ready to buy the dollar in cash and through the foreign currency auction to be held daily.

The source added : The purchase price is determined on the basis of the sale price of dollar cash in the auction only minus 2 dinars."

"Only minus 2 dinars. " What does that mean?

[Teslyn]

So this means someone is coming to my house to buy my dollars and give me more dinar? I'll be able to buy twinkies with dinar now? AWESOME!


On a more serious note. . . .


What does this mean?

[kingdomfunding]

Dollar demand hits new low in 2006
28 November 2006 (Aswat Al Iraq)

Buying demand for U.S. dollars hit a new low for 2006 on Tuesday and the dollar rate was down two dinars amid expectations of lower demand for the U.S. currency as the Iraqi central bank moves towards raising the dinar rate.
The Cenbank said in its daily statement the dollar demand reached $0.850 million compared to $20.580 million on Monday.
The central bank covered all bids received from local banks which were $0.850 million in cash.
The exchange rate was at 1,437 dinars per dollar, two dinars down from the previous session.
Only six banks participated in Tuesday’s session, the lowest number in 2006, and none of them offered to sell dollars.
The Iraqi central bank runs a daily auction on Sunday through Thursday.



Can you feel the love!???

[Adster]

So this means someone is coming to my house to buy my dollars and give me more dinar? I'll be able to buy twinkies with dinar now? AWESOME!


On a more serious note. . . .


What does this mean?

Dedollarization as was stated they wanted to do recently. Me likey. ;) ;) ;)

[pearse1916]

this is good news! another step on the ladder jmo

[DinarEagleRK]

We cannot forget - The US is currently building the 106 acre US Embassy compound near the Tigris River, and this indicates our presence in Iraq for several years to come. We have big plans in Iraq and the economy & free trade will be in the equation.

[JJLL]

So this means someone is coming to my house to buy my dollars and give me more dinar? I'll be able to buy twinkies with dinar now? AWESOME!


On a more serious note. . . .


What does this mean?

This means the CBI wants to pull US dollars out of circulation forcing people to use the dinar.

I would think that would be a good thing if a reval would occur. But who knows :) My mind has been turned to muck this week by reading so much!

[Joel57]

This means the CBI wants to pull US dollars out of circulation forcing people to use the dinar.

I would think that would be a good thing if a reval would occur. But who knows :) My mind has been turned to muck this week by reading so much!

You're right on track. The CBI is attempting to dedollarize Iraq, this is a good thing and Art VIII requires it. The problem is that currently merchants and business in Iraq need dollars to carry on day to day transactions. As the dollars become scarce, the cost of acquiring dollars increases (as we see by the improving dinar rate) imports and services currently paid for with dollars become more expensive, consequently increasing inflation. So, Iraq needs to make the dinar internationally acceptable for payment of goods and services, and, as you speculate, revalue it to give purchasing power.