[lightingcslt] DogzNova you see how high those auctions were
[DogzNova] lightingcslt yes.. 283,000,000 ... They pulling money off the streets ya think
[lightingcslt] DogzNova yeah talk about flooding, just give me a few more of those auctions
[DogzNova] I'm sure there wiil be
[Shredd] DogzNova what trends are you seeing in the auctions?
Read More Link On Right
[DogzNova] well today was the first time I have seen it in the high 280,000,000 in quite some time, if it stays that high.. they will pull the market price right down... it was just at 1292 a few days a go.. And yesterday it was at 1250.. so they pulled 42 pips out quite fast..
[Shredd] ok ty
[therealbubbie] 42 pips! chump change !!
[DogzNova] now.. if you remember last yr.. Shabs dropped the market price as fast as I've seen it since i've been watching this.. In October of 2012 S pulled it right down.
[waitingondinar] DogzNova if the dinars to $ goes down, that is bad for us, correct?
[DogzNova] no.. it's kind of confusing.. If the number goes down.. The value actully goes up for us
[therealbubbie] if it goes from 1166 to 1000 to one the dinar is going down but the value is going up !! correct !!
[DogzNova] therealbubbie correct
[lightingcslt] pip me baby to 1000
[DogzNova] the lower the number.. The higher the value for us.. For instance 300 to 1.. see what I'm saying..... 138 to 1 ect.
[Shredd] well, what i'd love to know is how much of the cash is circulated in and out via the auctions
[lightingcslt] wonder how we can find that out
[DogzNova] lightingcslt we all would.. I think they are with the remmitance
[Shredd] the auctions are a tool to manage supply which in turn affects pricing so, we could say the amount released back to the banks is based on the target pricing. which is being thrown out of wack due to high demand we simply can't add up the total of auctions and say that is the amount being brought in there is a circular process managing supply
[lightingcslt] Shredd why of course they have to manage it
[DogzNova] Shredd yeah... see they confuse me a bit
[Shredd] when they detail the participating banks they are the ones releasing cash back to cbi to maintain targeted balances.all banks operate this way the crosshairs are on the dinar supply
[DogzNova] Shredd I think there might be a diff doc. on the arabic side of the CBI but last time I tried to translate it it did work.. But I think it shows how much each bank is turning in each day.. Don't quote me.. But I think I remember seeing it
[Shredd] yeah, makes sense
[DogzNova] If you look at this chart.. You can see what shabs did last year regarding pulling down the market price..
from April through Oct
[Shredd] DogzNova a perfect picture of the stability in the pricing that is needed
[DogzNova] now remember the market price is floating against the USD.. It's just not in real time yet, it seems to be a few weeks behind if I overlap the charts..
The IQD market price over the USD dollar chart ... But if you take that CBI market price chart and the auction PDF file you can see how S pulled the market price down last yr.. It was with high auctions... Here is the PDF file if anyone wants to put the two together.. http://www.cbi.iq/documents/CBI_FOREIGN_EXCHANGE_AUCTIONS.pdf
[DogzNova] And I believe that all the extra currency that was on the streets last year was from the troops leaving.. If you look at that PDF file.. you will see the auctions picked up quite a bit after Dec 1st.. Actuly it started Dec 19th 2011
Why? Cause the troops started putting all their currency on the streets as they where pulling out.. When I say the street.. I'm talking about everything besids the CBI.. So that includes all the banks and street venders..
Sorry, I Just didn't want everyone thinking the troops turned their currency into the street vendors.. No.. They turned it into the banks.. And that to me is the same as the streets.. If it's not at the CBI then it's on the streets.. Hope that made sense..
[DogzNova] I remember when S said the CBI was gonna start floating .. I think I have the art saved.. Of course they said it in a confusing way.. But S did say float... But what he didnt say was... It was the Market price that was gonna start to float..
It's the market price that is floating against the USD right now.. The exchange rate is locked at the moment we all know that.. But remember they are teaching them how to do things at the CBI step by step... Next IMO should be the exchange rate floating..
Of course they will not start to float the exchange rate at 1166.. Thats crazy talk.. But I also think it's been floating behind the scenes, again JMO and I can't prove it.. So that's just a guess on my part.. But the market price floating against the USD is NOT a guess it's FACT..
[DogzNova] and before He said float.. the Market price was so stable it's not even funny.. For example the market price stayed at 1200 for almost a year.. Go back and see how stable it was during the height of the WAR. How could the market price stay so stable during war time but can't now ?
Because it wasn't allowed to float against the USD at that time... It was just supply and demand within the country. Shabs opened it up.. Rember it's a teaching thing... All part of the plan.
[lightingcslt] DogzNova well i think they been taught enough dont you?
[DogzNova] yes a 10 year plan and yes they are getting there..
[lightingcslt] DogzNova imo they are there
[DogzNova] Go back and study.. you will see Shabs did it step by step.. Then supposdly got canned .. Ok cyclops
[DogzNova] lightingcslt is the new CBI building opened ?
[lightingcslt] DogzNova I dont think so still being built
[DogzNova] Let me know when it opens .. k
[lightingcslt] DogzNova why?
[DogzNova] it's due to open at the end of 2013, all part of the plan.
[lightingcslt] DogzNova this is going down before that opening
DogzNova Shredd lightingcslt out
From Dogz: This article is from 9/16/2012
Arab Monetary Fund: the managed float system supports Iraq currency exchange
Baghdad/JD/... Arab Monetary Fund stressed that Iraq among States that depend on the managed float system of currency, Exchange systems prevailing in global economics and Arabic currency, include 3 types of first “ full floating, which leaves most of the market-determined exchange rate, while others adopt a “ peg in one currency or basket of currencies and countries most “ most cooperation, Jordan and Lebanon, in addition to exchange systems that combine both systems.
Head of training section of the Fund during the session “ most financial stability, which concluded Saturday at the headquarters of the Fund in Abu Dhabi, Ibrahim alkrasnh “ currency systems vary in the Arabic States to 3 types of most, noting that both Jordan and Lebanon and Gulf Cooperation Council linking its currency with fixed exchange rates against the dollar most.
He added, linking their currencies to Libya and Syria SDR, while Morocco Dirham exchange rate link undeclared currency basket, where the greatest weight in the euro basketball and the Central Bank determines the exchange rate Moroccan Dirham per day, minimum and higher exchange rate UAE Dirham.
The link to a basket of currencies is to choose a link to a basket of currencies available, such as SDR and other currencies baskets, usually based on the currencies of major trading partners.
Added alkrasnh support both Iraq and Tunisia and Algeria, Mauritania and the Sudan managed floating system of Exchange “ most, where currency value is determined in accordance with the market forces of supply and demand, and Government intervention when necessary to return the path of the exchange rate, in line with a set of criteria including a current account and foreign exchange reserves, with support from Egypt and Yemen a floating exchange system.
The “ free-floating exchange rate leaves the most freedom to change continuously over time, in line with market forces, limited interference by the authorities in this case to influence the pace of change in the exchange rate only, not reduce it.
Alkrasnh said “ refer literature relating to exchange rate systems that exchange-rate impact on economic growth and have it influence either directly through the affected Exchange rates or indirect effect of exchange rate on both investment and trade and financial sector development most.
Economic theory suggests that the effectiveness of States to deal with trade shocks depends primarily on the Exchange system adopted in these countries, which in turn is reflected in the economic growth of the State.
“ If he declined a State export prices, the reflection on economic growth depends on the exchange rate regime, whether fixed or floating, pointing out that the low price of exports would reduce State revenue, which will lead to a decline in economic activity, as well as in most employment.
“ If a State adopted a fixed exchange rate system, it requires the State to intervene to maintain the exchange rate of the local currency by starting to buy local currency, what will reduce this currency, for granting facilities and investments which would reflect negatively on the most economic growth.
He stated that if the adoption of flexible exchange rate or floating, the State is under no obligation to intervene to lift the rate the resultant lack of foreign currency, leading to a further decline in local currency which would reflect positively on exports and an increase in economic growth.
The impact of exchange rate system depends on the level of sophistication in the financial markets, where flexible exchange rate is usually coupled with high fluctuations that can have a negative impact on the economy unless the financial system able to absorb shock and provide appropriate hedging tools dealers, therefore believed that there should be a developed financial system if I want to take advantage of the flexible exchange rate.//