BondLady and Admins Chat CBI Auction 02/21/2015 Part 2
Tomorrow. A new mechanism for selling and buying of the dollar
[tlm724] Central Bank Governor explained that "it is not true that the Central remains preoccupied with selling the currency like ATM daily",
[tlm724] the CBI is saying they aren't preoccupied with pumping the dollars out daily like an ATM machine ! They have bigger fish to fry now !
[BondLady] the auctions help build the CBI reserves to the 70+ billion dollars it is today
[BondLady] so CBI feels they have enough gold and foreign money in the reserves to move forward with the LD's and also that the gov is finally doing their part in building up the economy private sectors and state sectors
[dogznova] they have been buying gold.. so 70 billion is probably right where they are now
[BondLady] removing the 000 from the notes
[tlm724] dogznova good point !
[BondLady] remember they just bought another boat load of gold to support that project
[tlm724] yes ! more then enough now ! They have to add value to the dinar NOW whether it's the triple zero notes or new notes, makes no difference at this stage, the dinar must have a strong purchasing power !
[BondLady] imo it'll have to have a new rate
[dogznova] I agree
[tlm724] taxes starting etc.. gonna put a hurting on the people !
[therealbubbie] 1000-1 and float from there imo !!
[BondLady] to what extent no one knows just stay strong and have faith this may be slow grow it may not happen over night after all it is Iraq but seeing anything new and different being done by the CBI is just huge after so many years of stagnation
[tlm724] indeed !
[dogznova] hail yes
[BondLady] too bad it took the oil sector bottom dropping out to force their hands to move forward
[therealbubbie] BondLady bingo!!
[tlm724] BondLady it had to be something, thats their MO
[dogznova] BondLady probably part of the plan.. oil dropping that is
[BondLady] but despite it all it's the move they HAD to make to them, no time would be right to do it because their scared but it has to be done and soon enough their fears will quiet down and go away
and I'm certain that Shabibi is in the background showing the CBI gov the way as he started it and imo he'll be right there and a big part of it because after all this time Shabibi is still the man who had and has the plan !
[BondLady] oh I agree dogz theres reasons oil prices went to hail , I think it was an inside job forcing them to do what they were so afraid to do
[dogznova] right, good plan
[tlm724] dayum sure coulda been !
[BondLady] conspiracy theory LOL
[BondLady] but don't think huge govs couldn't pull that crap off
[therealbubbie] bless there little thiefing hearts !!
[dogznova] The fact that they hide so much crap is what keeps me in this investment.. They wouldn't be hiding so much stuff for nothing
[BondLady] because it did and it is and now we see something having to be done whether they are scared or not
[tlm724] forcing their hand
[BondLady] forcing them to man up and do something their not used to or have forgotten how to after more than 12 yr approx
[therealbubbie] never thought the would have stopped the auctions !
[tlm724] therealbubbie right !
[BondLady] made huge money off it for sure
[tlm724] 40 million a day
[BondLady] and it probably played a big part too of not moving forward
[tlm724] it was easy money BL
[BondLady] thats why you see the CBI saying we not just doing auctions for the money
[BondLady] yeah right you made billions off it but the time comes when they would have to say ok we've made enough off the dollar now lets make some off the dinar
[therealbubbie] now lets make some off the dinar... that would be us !!!
[BondLady] this is from our spy shredders 007
[Shredd] Ladies and Gentlemen, This is certainly huge news.
First, what we know...............the central bank is stopping auctions for the purpose of the project to remove the zeros!
Now, to the gray matter....Stopping the auctions means stopping the central bank's mechanism of managing the amount of USD on their streets since the dollar is the preferred currency which in turn ensures stability in the rate.
The central bank is adopting the banking system of foreign remittances which is electronic transfer of cash. Again, this entire move is in the context of demonstrating the feasibility of removing the zeros. Like I said yesterday, the project to remove the zeros will either be the cause of or the result of strength returning to the dinar. This is very exciting indeed.
[Shredd] Now for the sense check. This doesn't mean an RV is going to happen Sunday or this is why the budget being in the gazette is being discussed because some gurus think the RV will be in the budget.
Apples and oranges folks. The central bank said this will be a gradual process and it is my opinion that this move is the first domino to fall in monetary policy change that will ultimately result in a market-driven, strong dinar.
[dogznova] That shredders is one smart dude !
[BondLady] I so agree with all shredds saying and I'm saying the same thing too
[therealbubbie] dogznova you took the words out of my mouth !!
[Shredd] The article goes on to tell us that the testing period for this project is complete and the program will be gradual.
The last part is familiar, isn't it?...... "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."
[BondLady] but he is a banker and he DOES know his stuff
[BondLady] he sure is bubbies and dogz we're so fortunate to have his expertise with us too
[therealbubbie] one thing is for sure ..... there stopping the auctions !!
[BondLady] thats a huge biggie for sure, the 1st step
[therealbubbie] BondLady after that imo it's all gravy !!
[BondLady] I think so too it's huge in every context to what we seek
[Shredd] If you recall my chat from a week or so ago, the type 216 account refers to BC-216 from the Comptroller of the Currency Administrator of National Banks which is concerned with foreign-denominated securities http://www.occ.gov/stati ··· -216.pdf.
This ensures conversion from one currency to the next (foreign exchange) will be regulated and compliant, especially with the 15 days to ensure funds coverage.
[Shredd] This makes a bit more sense now doesn't it? As Iraq moves away from the dollar (as supply will become more of an issue) and towards the dinar, foreign exchange must be safe, fair and regulated.
[BondLady] and remember what I said in the chat the other day about the supply and demand and dinar getting harder to get, put that also too what Shredd said
[dogznova] makes the value go up !!!
[BondLady] about the dinar drying up so much so that dealers may buy it back for more than the CBI rate is showing just so they can continue their businesses
[therealbubbie] foreign exchange must be safe, fair and regulated. . against counterfeiters !!
[dogznova] we will soon not have toilet paper folks.. lol
[BondLady] amen shredders
[Shredd] As the rate increases, the large notes will become too large and less usable/practical and therefore will be removed for smaller denominations. Gradual, methodical, regulated and fully compliant.....all while providing protections in foreign exchange on all levels, public, private, consumer and corporate.
[dogznova] shreed is correct.. They want our three zero notes... Sweet
[Shredd] In summary, no matter how you look at it, this is huge news! Auctions stopping, engaging the process to remove the zeros
[BondLady] I totally understand all our lives have become harder with this US gov but hopefully our economic futures are about to be better for all of us
[BondLady] ty shredd so much for all your expertise we always appreciate you so much here at BLC
[dogznova] so the CBI goes from a cap of 75 mil per day. To no auctions in less then a month? Hummmmmmm and they stopped sat auctions as well this year... Hummmm
[shunshine] Thank you Bondlady, Timmy and Shredd and all of the staff *grouphug*
[therealbubbie] BondLady you read my mind !
[BondLady] 1st quarter still looking good for the CBI change huh? monetary change
[tlm724] without a doubt BondLady !
[dogznova] oh yeah.. big changes are coming
[BondLady] yeppers they sure are and like we have said all along we don't know to what extent the CBI is going to move forward all we can do at this point is watch what they do and for real watch what they say now after so many years of BS we are seeing Iraq do what we knew they could all along their just scared but it IS happening and we are all seeing the progress and its been huge with this NEW GOI and CBI team work ! Thanks everyone !