TLAR:, I think that out of the 30 trillion the CBI stated was out at the hieght, there cannot be more than 16 -17 trillion left. First off the actions on the CBI state both buying and selling USD and dinars.
They have been heavily buying dinar back for 6 months and at times it was as much as $350 million per day. This equates out to (408.1) billion dinars per day. Kap is corrrect though. It is not a one way street and some dinar makes its way back onto the street.
Most remain at the CBI and for sure, the large 3 zero notes are being kept as this has been a stated goal since April 2011. I also assume even the small physically degraded notes, the 250 and 1000 are also removed from circulation never to get back out.
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In any event we are definitely witnessing a dollarization of not just Iraq, but their tradng partner countries such as Iran and Syria and all border trade zones with Kuwait and Turkey. Remember both Syria and Iran had accepted the dinar as a viable currency for use in trade.
They both had trillions of dinar that their banks had bought from their citizenry. Iraq according to Saleh when he was deputy govenor of the CBI had stated the numbers of dinar out in Iraq at roughly 4 trillion. These auctions dollarizing Iraq have also dollarized Iran and Syria because they needed the hard currency. Their own currency, had all but collapsed.
I said when this all started that it was the UN's guidance to Shabibi that forged a plan to repatriate the Trillions of dinar from these two pariah states that they had accumulated before they would ever consider any big movement on the dinar.
Maliki, almost from the get go of his second term, in the absence of the US, had signed favored trading agreements with both countries which allowed them to stockpile dinar. This had to be cleaned out. I think this is still going on but basically has almost served its purpose.
They had to dollarize in order to repaitriot this dinar from Syria and Iran. The UN put sanctions on Syria and Iran which caused their currencies to collapse thereby creating the need in both countries for hard currency. This was Syria's and Iran's motivation to sell their dinars. Shabibi let the currency drift to 1320 during their frenzied selling. Shabibi was buying their dinar cheap.
I also believe this was part of the overall plan because Iraq's reserves at the same time were 2.58 times the value of the dinar on the streets. The dinar should have gone up in value based on its backing, not down. That's why I think Shabibi was in control and it was he who allowed the dinar exchange rate to drift down. It has worked. No thanks go to Maliki. He's tried to stop the plan as he has everything that was economically positive for Iraq. .
P.S. Turki was also in tune with and following Shabibi's plan. The rumors that Maliki is after him has an element of truth in them but Maliki may now have backed off because of his personal situation.
Sales of dollar by CBI decline on Tuesday auction.
12/02/2013 17:26:00 Baghdad/ NINA /--Sales of dollar by the Central Bank of Iraq CBI declined on Tuesday auction to 205 million and 945 thousand dollars after it hit yesterday, 216 million and 437 thousand dollars , with a stable exchange rate of 1166 dinars per dollar, Sales and purchases of other foreign currency showed decline on today auction as well.
The daily bulletin published by the Central Bank said : "demand for dollar was ranging today around 28 million and 850 thousand dollars./End
Sales of dollar by CBI decline on Wednesday auction.
13/02/2013 16:24:00 Baghdad / NINA /--Sales of dollar by the Central Bank of Iraq CBI declined on today auction to 190 million and 915 thousand dollars after hitting yesterday 205 million and 945 thousand dollars with a stable exchange rate of 1166 dinars per dollar , The sales and purchase of other foreign currency showed also decline on Wednesday.
The daily bulletin published by the Central Bank said "demand for the dollar was ranging tody around 31 million and 375 thousand dollars./End
Sales of dollar by CBI decline on Thursday auction.
14/02/2013 16:49:00 Baghdad / NINA /--Sales of dollar by the Central Bank of Iraq CBI declined on today auction to 171 million and 447 thousand dollars after hitting yesterday 190 million and 915 thousand dollars with a stable exchange rate of 1166 dinars per dollar , The sales and purchase of other foreign currency showed also.
The daily bulletin published by the Central Bank said "demand for the dollar was ranging today around 16million and 265 thousand dollars./End