Thursday, June 13, 2013
Baghdad / Baghdadi news / .. Iraqi Central Bank announced on Thursday, for receiving a formal letter from the Association of Banks commitment includes three banks as a first stage to sell the dollar to the public at a lower price than advertised. FULL ARTICLE & LINK BELOW
Tlar: This is the same as another thread. This assumes the street rate is a rate that is determined by how much the banks in Iraq sell USD for. It is not.
The street rate is determined by how much the currency is sold for "in the street". If all the banks sold at the program rate, Iran and Syria would still be there to buy what they could at a premium over the program rate. The steps are like this.
Read More Link On Right
Tlar Continues: The bank sells 5000 dollars to an Iraqi at lets assume the program rate plus a small fee. That Iraqi runs into the "street" and quickly turns a profit selling his newly bought USD to a money changer.
The money changer then sells it to an Iranian front company or individual for a profit. The USD is then smuggled out of Iraq headed to Iran. At least two and most likely three times this USD changed hands ultimately increasing in value each time.
So from the banks program rate to the ultimate end buyer is where the "street rate" is determined not at the bank.
It is the highest buyer that determines street rate, not some artificial sacrificial low ball sale that the bank makes in order to appear to appease the CBI
FULL ARTICLE & LINK : Thursday, June 13, 2013
Baghdad / Baghdadi news / .. Iraqi Central Bank announced on Thursday, for receiving a formal letter from the Association of Banks commitment includes three banks as a first stage to sell the dollar to the public at a lower price than advertised.
The bank said in a statement received / Baghdadi News / copy of it, that "the governor Abdul Basit Turki received a formal letter from the Association of Banks includes a commitment solemnly announced previously on the initiative of three banks as a first stage to sell the dollar to the public at a lower price than advertised to reach / 1183 / JD to the dollar
instead of / 1189 / dinars to the dollar (cash), "stressing that" the sale price of documentary credits will be / 1178 / dinars to the dollar instead of / 1184 / dinars to the dollar. "
He added that "the central bank for the initiative and said it represents a natural behavior that show him most of our banks to stand with the trends of monetary policy is good that we walk upon," expressing "concern the Bank and the banks to support the Iraqi economy and raising the efficiency of financial instruments and cash used." End / 21 LINK
I report...you decide.