Interesting....

[Adster]

Awful lot of dollars, hhmmmmmmmm........

Details Notes
Number of banks 7 -----
Auction price selling dinar / US $ 1430 -----
Auction price buying dinar / US $ 1428 -----
Amount sold at auction price (US $) 6.500.000 -----
Amount purchased at Auction price (US $) 1.930.000
Total offers for buying (US $) 6.500.000 -----
Total offers for selling (US $) 1.930.000 -----

[buck74]

I wonder if this is a record for amount purchased. As you have said this is very interesting.

[Secret Key]

Amount purchased at Auction price (US $) 1.930.000

27,792,000,000 I.D. So was this bought FROM the CBI or SOLD to CIB?

[buck74]

I believe this would be the amount of US dollars purchased from banks by the CBI. So the banks receive dinars, the CBI receives their USD.

Amount sold is the amount of US dollars sold to banks. So the banks are giving dinars back to CBI in exchange for USD.

So in other words the banks are dumping thier dollars. This is an increased emand for dinars by the banks. This is what we want to see I believe.

Someone correct me if I am wrong.

[Adster]

I believe this would be the amount of US dollars purchased from banks by the CBI. So the banks receive dinars, the CBI receives their USD.

Amount sold is the amount of US dollars sold to banks. So the banks are giving dinars back to CBI in exchange for USD.

So in other words the banks are dumping thier dollars. This is an increased emand for dinars by the banks. This is what we want to see I believe.

Someone correct me if I am wrong.

Exactly, look at the figures again, Amount sold at auction price (US $) 6.500.000 -----
Amount purchased at Auction price (US $) 1.930.000 looks like the banks are stocking up on dollars, now why would they do this........;)

[PegBundy]

I believe this would be the amount of US dollars purchased from banks by the CBI. So the banks receive dinars, the CBI receives their USD.

Amount sold is the amount of US dollars sold to banks. So the banks are giving dinars back to CBI in exchange for USD.

So in other words the banks are dumping thier dollars. This is an increased emand for dinars by the banks. This is what we want to see I believe.

Someone correct me if I am wrong.

Maybe I am just confused but your two middle sentences contradict themselves. If the banks are selling USD to CBI then in the 3rd paragraph wouldnt it say the banks are dumping their DINARS for USD??? The increased demand for dinar would be by the CBI and the banks are in turn purchasing more USD

please correct me if I mis-read

[Scubadiver]

I was under the impression that the Iraqi government needed the USD for oil contracts? This could be one explanation.

[Joel57]

I wonder if this is a record for amount purchased. As you have said this is very interesting.

No.
1.93 million dollars worth of dinar was bought today. Yesterday was 2 million. Although this is NOT the norm, I have seen previous larger amounts.

[mscollectors]

Maybe I am just confused but your two middle sentences contradict themselves. If the banks are selling USD to CBI then in the 3rd paragraph wouldnt it say the banks are dumping their DINARS for USD??? The increased demand for dinar would be by the CBI and the banks are in turn purchasing more USD

please correct me if I mis-read

That confused me too.

I thought that CBI goes up on the rate which would encourage some to "sell out", thereby CBI would regain their Dinars and have greater control over the volume and therefore able to manage the rate and flow of the currency making it easier to increase the rate since there would not be the little people speculators that dont have the ability to ride it out so to speak. So then we would want to see more "selling" at the auction of USD and more "purchasing" of IQD by the CBI.
But I am just a little speculator myself with limited knowledge on the subject so maybe someone else could chime in and explain this process better for me.

[StephanieF]

Exactly, look at the figures again, Amount sold at auction price (US $) 6.500.000 -----
Amount purchased at Auction price (US $) 1.930.000 looks like the banks are stocking up on dollars, now why would they do this........;)

Want a serious answer?

To pay for imports since the dinar is not widely accepted like the dollar.;)

CBI sells dollars to the in country banks and sometimes (seen in the smaller numbers) dinar for local business.

Did you think it was to cash in foreign exchange?

[Joel57]

Total offers for buying (US $) 6.500.000 -----The banks BOUGHT from the CBI 6.5 million USD

Total offers for selling (US $) 1.930.000 -----The banks SOLD 1.93 million USD to the CBI (they got dinars in return

[Joel57]

Want a serious answer?

To pay for imports since the dinar is not widely accepted like the dollar.;)

CBI sells dollars to the in country banks and sometimes (seen in the smaller numbers) dinar for local business.

Did you think it was to cash in foreign exchange?

Not very often, but in this case, I agree.

[PegBundy]

Total offers for buying (US $) 6.500.000 -----The banks BOUGHT from the CBI 6.5 million USD

Total offers for selling (US $) 1.930.000 -----The banks SOLD 1.93 million USD to the CBI (they got dinars in return

If that is the case then the intrabank demand for dinars is NOT high

[Joel57]

If that is the case then the intrabank demand for dinars is NOT high

These transactions are IN COUNTRY

[PegBundy]

These transactions are IN COUNTRY

I understand that - but when the rate is determined by demand, the control for that is by the banks IN COUNTRY.

[Joel57]

I understand that - but when the rate is determined by demand, the control for that is by the banks IN COUNTRY.

OK, I see what you're saying

If you notice the dollar demand is way down, and we even had one auction of no participation, along with one that was under 1 million. The banks are holding dinars right now, it seems they are waiting Shabibi out, typical auctions were 30 mil and up until he started this regime he is currently on.

[PegBundy]

To be completely honest I see no method or reasoning for how this rate is determined. Someone has their hand on the lever and can move it when they please. Timing is everything with this, the 1470 was determined and used to show stability in creating demand for the dinar internally. The government needed to keep it steady even if it was getting strong or weak. Now that signs of life are starting to show up with not just domestic interest in their economy, that demand is starting to show through in the crawling peg. The crawl might lend toward a 100 point jump but that is about as high as I see it going.

[Crow]

A good show.

[buck74]

Yes if you look at recent auctions from a historical point of view the demand for dollars is way down, and the demand for dinars is up from what it has been. So banks do seem to believe that the rate will continue to increase in the future.

OK, I see what you're saying

If you notice the dollar demand is way down, and we even had one auction of no participation, along with one that was under 1 million. The banks are holding dinars right now, it seems they are waiting Shabibi out, typical auctions were 30 mil and up until he started this regime he is currently on.