BondLady and Admins Chat CBI Auction 02/21/2015 Part 1
Tomorrow. A new mechanism for selling and buying of the dollar
21/2/2015 12: 00 am Baghdad: Tareq al-araji
Iraqi Central Bank Governor disclosed the relationship to Sunday 22 of this month will see the discontinuation of the auction and the adoption of the banking system as a responsible foreign remittances,
referring to direct a study to demonstrate the feasibility of removing zeros in this stage. and relationship, said a statement with "morning", "the Central Bank since taking responsibility for action to bridge the gap in his dealings",
stating that he "finished a new version and leave the old ways coupled with certain circumstances can't keep Governor of the Central Bank, which has the functions and tasks and activities of large and important to the national economy. "
Central Bank Governor explained that "it is not true that the Central remains preoccupied with selling the currency like ATM daily", saying "the transition to a new a foreign remittances through the banking system within the mechanism established for that."
"The relations between all the banks informed the mechanism", as the "Central is no longer a party to the process of buying and selling currency," revealed that "on Sunday will apply this mechanism."
And on draft delete zeros from the currency, said that the project still exists ", but it" was a study to determine the feasibility and safety of procedures applied.
"he noted that" the Central will take its time in the implementation of this programme, "referring to" develop a plan for steps project delete zeros. "
a relevant level, a report issued by the Central Bank of Iraq," Sabah "has received a copy of it, on the basis of the provisions of the law on the Central Bank of Iraq for the purpose of achieving the objectives of the Bank and the stability of the dinar exchange rate Iraqi foreign currency
through the optimal use of resources in foreign exchange needs all the non jobs central functions that are the core of the work of the banking system and other relevant departments, in compliance with the requirements of the AML/CFT law the Central decided to issue a new instruction on this matter.
According to the statement, "the Central Bank of Iraq to boost stocks of banks willing to correspondents abroad to finance banking operations permitted by law and described in detail in the attached list, with appropriate indicators to ensure exchange rate stability, trade finance and other operations."
It added that "banks wishing to enhance their assets in dollar deposits equivalent in Iraqi dinar account type 216 before fifteen days from the date of presentation ensures coverage amounts equal to their requests, the minimum amount required for a certain limit determined by the Central Bank."
the statement continued that "the Bank a written request to the Directorate-General for the promotion of investment in its delegation abroad together with a copy of under promoting the Iraqi dinar account balance type 216 equivalent amount to be converted,
The subsequent strengthening disclosure request detailing the amounts used converted to clients. "the central principle of" know your customer "to ensure legal safety and banking procedures in special mesh triath and sales of foreign currency for different purposes,
and to monitor compliance and internal control Department and the unit on money-laundering in the Bank to play its role in this area and to report any suspicious transaction."
The statement noted that the Bank "keeps its disclosure with its correspondents indicating the movement of the account and the use of credits by the Central Bank."
The statement noted that "banks send bank statements details of transfers in foreign currency by the Central Bank of Iraq and uses to the Directorate-General for finance and credit."
He was dollar selling price is to enhance balance abroad for all uses by 1187 dinars per dollar, as cash selling price is 1,190 dinars per dollar, "pointing out that" work continues on our instructions for sale cash through window selling and buying foreign exchange,
is not required by buyers of the dollar slips in cash and keep vendors "banks and companies with" detailed statements by the names of buyers and enhanced documentation and under the control of the Central Bank of the field ".
General Directorate for control of banking and credit, according to the statement, the follow-up to the implementation of the banks for help in the event of any breaches exposed the Bank to the penalties stipulated in laws and regulations in force ".
Central revealed his plan with the banks for "capacity-building and the creation of possibilities for the expansion of credit in foreign trade banking," void "all previous instructions conflict with the instructions".
[BondLady] no more auctions, thats huge isn't it
[therealbubbie] yep !!
[BondLady] we had to see that before there could be a monetary change and they have made huge $$$$$$$$$$$$$$$$$$$ off selling the dolllar
but now they need to get Iraqi's used to dealing with dinar and not the dollar they have become so accustomed to.
[BondLady] its time to throw out the old and in with the new CBI procedures in order to diversify and move the country forward and grow the economy and banking areas up to pre war status...
[tlm724] Sunday Feb 22nd the currency auction of the USD stops!
The banking system hence forth will pay foreign remittances which are Iraq's bills for imports etc...
[BondLady] tomorrow folks they stop the auctions
[cat] check mark !
[BondLady] yeppers cat
[oldbarbie] BondLady tlm724 *hallelujah*
[tlm724] cat yes absolutly check mark !
[therealbubbie] take a picture this was the last auction ..
The latest daily currency auction was held in the Central Bank of Iraq on the 19-02-2015 results were as follows:
Details Notes Number of banks 24 Auction price selling dinar / US$ 1166 Auction price buying dinar / US$ -----
Amount sold at auction price (US$) 85,993,000 Amount purchased at Auction price (US$) ----- Total offers for buying (US$) 85,993,000 Total offers for selling (US$)
[tlm724] therealbubbie love those words "last auction "
[tlm724] to direct a study to demonstrate the feasibility of removing zeros in this stage
[tlm724] It can be accomplished now !
[BondLady] studies are over
[BondLady] CBI gonna go slow so the GOI doesn't freak
[tlm724] steady as she goes !
[BondLady] but imo they are doing it and moving on with the CBI monetary reform
[tlm724] you said that 2 weeks ago and on the 20th as well BondLady !
[BondLady] CBI and GOI now got the buddy plan and are actually working together helping each other
[therealbubbie] and the gov't isn't freaking out !!
[tlm724] the Central will take its time in the implementation of this programme, they told us it could take up to 4 years from start to finish
[BondLady] CBI said it would be gradual and it sure has been and probably will continue but the big thing here is after all these years of the same monetary policy to see all that change and to come off the programmed rate will be huge
[tlm724] they are lifting the curtain !
[therealbubbie] the Central decided to issue a new instruction on this matter.
[BondLady] we don't know what they will do yet and nobody does...we can guess all we want to but we don't know if it'll RV, do nothing for a minute or a RI or a float
[tlm724] that is the banking laws we needed to see amended therealbubbie ! They are going by the law and EVERYONE in the banking industry must be on the same page !
AML/CFT law is Anti-Money Laundering/Combating the Financing of Terrorism Laws and are part of the IMF international standards. The CBI is issueing new instructions for all the above .
[BondLady] but what we do know is the CBI is finally revealing to us their intent so far...
[tlm724] been a long time coming !
[BondLady] and thats 1st they capped the auctions but that didn't do for them what they needed so now they stop the auctions to make them stop buying dollars and to force them to use dinars
[dogznova] a CBI document from a few yrs back said they where gonna stop the auctions. Wish I could find it
[BondLady] they don't want to use dinars they have gotten used to the dollar so they will be in shock for a few but then the CBI will release the new money making it easier and closer to the dollar notes so they'll be able to carry less dinar and still do the same thing the dollar did for them.
We don't know what rate will be on those notes no one does but I feel like imo the CBI is about to show us soon !
[tlm724] BondLady agreed ! They are acknowledging that the old ways ie: the auctions, don't work for the current circumstances and it is time to move on to the new monetary policy and currency reform !
[cat] well praise the Lord
[therealbubbie] cat yesss !
[tlm724] cat Amen !
Comments may be made at the end of Part 2 Thank You