[Shredd] ok i've said this on many posts before.... there is a difference between sale price and exchange rate a price is what is paid and the rate is the money no different than you buying something ….. Chat Continues after article …
Central bank: we support the national economy to stabilize the market
12.12.2012 12:00 AM BAGHDAD - morning,
The central bank announced Tuesday, allowing Iraqi banks to open documentary Alaatmadt, decided to increase the share of the weekly auction and given to the exchange companies and money transfer, as well as adopted a resolution authorizing the Governor of the Bank to reduce the sale price of the dollar according to the requirements of the market.
confirmed in a statement received by Bank (Sabah) a copy of the need to focus on the development of tools in monetary policy and support national economy, the stability of the market, taking a number of decisions he said include encouraging a number of Iraqi banks,
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including (Baghdad, credit, Mansour) in the first phase and include later all banks licensed to open letters of credit and funded by the Central Bank of Iraq according to a mechanism designed for this purpose in addition to the continuation of these banks in the entry window sale of foreign currency,
and hinted statement that Central decided to increase share weekly auction and donated to the exchange companies and money transfer.
Explaining that the mechanism will be through the granting of 100 thousand dollars to exchange companies who increased their capital and according to the requirements of the Central Bank of Iraq for "five hundred million dinars."
And 150 thousand dollars for money transfer companies who increased their capital before the date required by the Central Bank of Iraq for "Fifteen billion dinars."
And 125 thousand dollars for the money transfer companies who increased their capital for ten billion dinars "The statement to authorize the Governor of the Central Bank of Iraq the power to reduce the sale price of the dollar and of 1179 dinars to the dollar to enhance the value of the Iraqi dinar and the requirements of the market.
[Shredd] ok i've said this on many posts before.... there is a difference between sale price and exchange rate a price is what is paid and the rate is the money no different than you buying something
[player46] that's right I forgot.
[Shredd] if you want to buy a toaster for 20 bucks but its on sale for 18 you pay 18 using USD so, this is a super article, but they are talking about pricing now, lemme say this tho
[Shredd] if the prices keep sliding far enough the cbi will pip the exchange rate like they have before that's why you see the exchange rate at 1166 and PRICES at auction near there up to, what....1280 ish
[Shredd] and even went below a bit if i remember correctly right so, they are connected but not immediately if that makes sense but again, great great great news and official! i like that
[player46] Shredd .. if they move we don't see it on cbi do we?
[Shredd] not for pricing, no but you will see it on auction details
[player46] ok that was my question ty... yes...
[drc1947] Shredd tyvm
[player46] enhance the value of the Iraqi dinar based on market demands. how is that controlled?
[Shredd] The bank decided to encourage banks (Baghdad, credit, Mansour) in the first phase and include later all banks licensed to open letters of credit and financing by the central bank according to the mechanism designed for this purpose in addition to the continuation of these banks in the entry window sale of foreign currency / currency auction .
[Shredd] lemme explain this part too, if I may this is good....
[player46] we will not see the movement on cbi... just auction prices...
[Shredd] the "later phase" will include the opening of letters of credit (LOC)
[player46] Shredd .. k.. ty...
[Shredd] an LOC is a bank guarantee.... of creditworthiness on loans so, if a loan (securitized as a bond) is taken out by an Issuer, a bank will put their guarantee on it so that investors want to eat it up! folks, this is great news and lemme tell you why
[Shredd] because of the market issues we've had since 2008 virtually no banks are doing LOCs
[lightingcslt] Shredd wow really?
[Shredd] because banks are scared of guaranteeing debt so, for this to be here is huge the cbi is going agains the grain and this will be massively attractive for investors
[lightingcslt] Shredd we ready?
[Shredd] to invest in debt (bonds) over there also.... "window sale of currency" this is referring to the auctions so we see the marrying of these in this article a two phase project it looks like this ties in to the chats we've been doing about banking/investment
[Shredd] i sure hope all our peeps appreciate the massive amount of work being done in Iraq for investment and banking
[drc1947] Shredd working hard to get it done
[Shredd] so, again,.... so many peeps staring at the dang rv or float or whatever and missing all the behind the scenes it's like wondering if it will ever happen solely based on it happening LOL!!! but when you look at these things you can see.....what? you can see it COMING
[dinardoe] I read another opinion on the LOC issue that Maliki could get a LOC loan, default, and thereby get his hands on the reserves...what think you ??
[Shredd] not connected at all dinardoe let me explain.... a LOC is a bank guarantee on debt the LOC bank does not lend or disburse funds unless there is a default or deferrment, they get fees for their protection simalar to insurance premiums for protection but defualts and deferrals dont happen on debt right away on a new debt issuance, they are the most healthy then its later down the road when help may be needed plus, LOCs have to be renewed on a regular basis
[dinardoe] so what would keep someone from intentionally getting a LOC loan and then defaulting
[Shredd] if both parties agree upon renewal dates, a LOC bank may reduce or completely remove their protection dinardoe that is the responsibility of a LOC bank to do their due diligence if the Issuer has a good past payment history good financials etc,... they will back it if not, they will not guarantee just anything lol
Central Bank: Bank Governor authorization to reduce the exchange rate for the Iraqi dinar value 11/12/2012 03: 18
The CBI revealed the Governor authorization to reduce the exchange rate to strengthen the value of the Iraqi dinar.
A source at the Central Bank in a statement said singling out the Iraqi channel that authorization comes in the framework of the decisions taken by the Bank in connection with monetary policy and the stability of the market and encouraging Iraqi banks to open documentary credits and increasing the share of banking and remittance companies applied for help at an auction sale of currency.
[player46] what does that mean to you? same as you were saying earlier?
[Shredd] dinardoe we could "what if" forever.......there are controls in place and with a newly emerging Iraq, I've got to know they will have a careful eye on them for a while.
[player46] Shredd ... did you see my question? ^^^^
[dinardoe] ty ty
[Shredd] player46 that last sentence
[Shredd] auction sale of currency tells us, yes, it's referring to the same
[player46] ok just what you explained earlier.. ty
[Shredd] yqw, Shredd out....