Nashor said "the Obelisk", "the good Bank has obtained full approval to sell the dollar as of Monday, citizens of April and according to the conditions and controls set by the Central Bank of Iraq", stating that "the Central Bank has allowed the sale of the dollar through good ten of its branches in Baghdad." FULL ARTICLE & LINK BELOW
TOBYBOY: This is interesting article starting tonight April 1 st Rasheed BAnk sell from 10 branches the US dollar $5000 each citizen per week which is $5,800,000 dinars this certainly should help take more dinars off the streets and should help to increase the value of dinar against the dollar
TLAR: I believe that this is part of the CBI's overall strategy to bring the street rate and the program rate back together again. If you were trying to buy dollars in Iraq, and the CBI through all 10 branches of Rasheed would sell them directly to you at 1166 per dollar, the program rate, why in the world would you buy from a street vendor for 1280 dinars per dollar the blackmarket/street rate?
Read More Link On Right
TLAR CONTINUES: In addition the CBI is making it easy to buy from them by having the 10 Rasheed branches in Bagdad sell up to $5000.00 per week to any legitiment buyer who can show proper identification.
This is the same thing Shabibi did before he was removed, but Shabibi did not make so this available and convenient to the average citizen.
This really should help the two rates come back together in conjunction with the procedural changes at the CBI auction, and the purchasing banks. This is a real positive for our investment. IMHO
BLUEYESINLEVIS: The May 22 DFI release of funds is less than 2 months away. The CBI has been drawing in millions... no billions... actually trillions of dinar for over a year now. The existing Dinar is torn and tattered... and what is not is being hoarded by those who can afford it.. and the citizens do know that something is up with their currency.
The auction numbers are shrinking weekly.. because there is less and less dinar to be drawn in. I submit that they are as near as they need to be now. In fact.. the longer it goes with the status quo... now that they budget is ratified.. they may well even have to start releasing some dinar back into the economy.. as expenditures.
Not saying it will happen today.. but I believe that whenever they decide to lift the rate in whatever fashion they decide to do it... that they are as ready as they are gonna be. Sure.. every day.. every auction they have.. every dinar they buy now is money saved.... but it is a drop in the bucket... and every time they pay out government salaries in Dinar.. they are defeating the purpose of the auctions.
I really think the time is nearing... we just need to see a law determining that USD wil be a base for repaying loans and mortgages... and whatever other few financial laws are necessary...
But I think the only real holdup is the final hammering out of the politcal deals... ie; final HCL, 140 etc. The 800 lb gorrilla in the room is what they end up doing about Maliki.
TLAR: I think they are there in terms of how many dinars they have to collect. In otherwords they have "hit" their target in pulling enough dinar. What we are witnessing now is the CBI attempting to move the street rate back to the program rate.
When these two rates once again are both controlled by the CBI, we should see change in the currency. Remember, no matter what a country says its currency is worth, if the street value (real value) is lower, then that is truly what the currency is worth.
It makes no difference what the CBI puts as a value on the dinar, if the street trades it for a much lower value then the market is out of equilibrium. In this case the CBI puts the value at 1166 where the market for the dinar is selling at 1280.
This creates a split between what the bank says its worth and what its being traded on the streets for. This is what has created opportunities for many to get rich because of this. It is also what caused all the yahoo from the "experts."
But the good thing is, it created the condition allowing the bank to repatriate dinars. The CBI has to have both rates under their control and to be one in the same. In order for the CBI to be in complete control of the value, they must control both rates.
The street rate must be 1166 before the CBI can do anything with the currency because if the street rate does not honor the program rate, then most likely it won't honor any change in the program rate. If you showed up tomorrow in Iraq with a fistful of dollars looking to buy dinar, where would you buy it?
From the CBI or from the street, assuming both currencies to be good currency? Most likely you would look for the bang for the buck. That would mean you would receive 8% more dinar if you bought it on the street, not from the CBI. The CBI must be in control of the street rate, otherwise the street rate will control the value of the dinar instead of the CBI. This is unacceptable in any country..
FULL ARTICLE & LINK
Rational Announces processing foreign currency citizens across 10 branches in Baghdad
Published on Sunday, March 31 2013
Baghdad/Obelisk: Director General Rasheed Bank Kazem Mohammed nashor, Sunday, on the processing of citizens in dollars over 10 branches in Baghdad on Monday.
Nashor said "the Obelisk", "the good Bank has obtained full approval to sell the dollar as of Monday, citizens of April and according to the conditions and controls set by the Central Bank of Iraq", stating that "the Central Bank has allowed the sale of the dollar through good ten of its branches in Baghdad."
He said "per citizen according to the recommendations of the Central Bank will have the right to purchase $ 5,000 per week from after taking identity papers," he said, adding that "step is to grant citizens greater flexibility in obtaining foreign currency and reduce congestion on the ports that are currently available to sell the currency."
The Iraqi market has experienced considerable unrest in recent weeks in the price of the US dollar against the Iraqi dinar as the sale price of one dollar to 1280 dinars. LINK