BLC Admin Shredd Chat 1/27/2015
[Shredd] "The central bank also decided to buy Treasury bonds from the secondary market, where the central bank will buy about 5 trillion dinars in the first phase of these bonds," adding that "the above procedures for upholding the private reserves of the Central Bank."
When a bond is first sold in the market, it is initially bought in large pieces to a small (usually private) group of investors such as banks and large institutional funds.
This initial purchase is done in the "Primary Market". It's the first line of lending.
From there, these initial holder group will typically sell all or a portion of their investment at a favorable spread and in smaller pieces to a larger audience in the public sector. This is done in the "Secondary Market".
So, why do we care? The CBI is participating in this process to stimulate investment in the secondary market, to the public sector and at the same time benefiting from this favorable process to uphold its reserves.
Make sense? The CBI is playing a huge role in stimulating the investment in their country! This is proof in the pudding folks and the positive ripple effects of them facilitating investment in this manner is textbook and will fast forward investment money and returns for Iraq.
By the way, this of course, will substantially support adding strength to the dinar. it's all good...........so much proof that the central bank and the GOI are working together to now bring economic growth to the country and that translates to Iraq getting out of a dual currency situation.
IMO, this is also proof that both entities know the dinar is stronger than the dollar to be working on making this move... but that last part is my opinion.
[therealbubbie] Shredd the auctions are getting smaller !
[Shredd] therealbubbie where they at these days?
[therealbubbie] the last 6 !! Shredd wait and i''ll show you !! give me a minute !
[therealbubbie] 224,986 ... 123,867 , .. 108,544 ... 97,918 ... 77,907 .. 67,593 !!!! Shredd
[Shredd] therealbubbie wow, keep watch, may be more telling than most realize
[therealbubbie] Shredd wating on tomorrow to see if it go's in the 50's !
[therealbubbie] Shredd what are the steps they need to get into article 8 ... or what ever you call it !!
[Shredd] therealbubbie tbh, it's been a while since I read it (sadly, yes I read it) so I can't really opine. I'd just be restating what other gurus are saying and that's not my M.O.
[therealbubbie] Shredd so you can't opine ... but can you talk about it ! lol
[Shredd] lol well, let's focus on what we know..........
[Shredd] the dinar has appreciated via a managed float without any Article VIII compliance so, one could assume a continued move of the dinar rate, managed by the CBI, could continue but regarding moving to a free float that is market driven,
that is the part others are saying is contingent on compliance and it makes no difference to me the method.........we win either way. I gotta run
[therealbubbie] Shredd ty !