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Bondlady and Admin Chat - 9-6-13 DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

Bondlady and Admin Chat - 9-6-13

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Bondlady and Admin Chat - 9-6-13 Empty Bondlady and Admin Chat - 9-6-13

Post by Ponee on Sat Sep 07, 2013 2:21 pm

Bondlady and Admin Chat - 9-6-13



[BondLady] lets have a look at a few things going on

[lightingcslt] Here is some information I believe may relate to this great thread. Thank you.

Alsumaria News / Baghdad and the Council of Ministers approved, on Tuesday, to convert the purchase amount from the local currency to the U.S. dollar official exchange rate by the Central Bank of Iraq.

said the General Secretariat of the Council of Ministers in a statement received "Alsumaria News", a copy of "The Council of Ministers held, Today, its thirty-eighth regular in Baghdad headed by Prime Minister Nuri al-Maliki.

The Secretariat explained that "the Council has agreed to transfer the purchase amount from one currency Iraqi dinar currency to the U.S. dollar official exchange rate by the Central Bank of Iraq,

" indicating that "the payment will be Under the letter of credit is opened in banks in the country of purchase in the case of direct purchase from the outside when absolutely necessary. " LINK

[lightingcslt] Decisions of the Council of Ministers meeting No. 38 on 09/03/2013 -Approval of transfer of purchase of Iraqi dinar currency to USD at the official rate of Exchange by the Central Bank of Iraq, under a documentary credit is opened in a bank in the country of purchase in case of direct purchase from abroad when absolutely necessary. LINK

[BondLady] I was told we need to check the CBI web site under monetary policy. Open market operations start either October or November per CBI.

[BondLady] anyone have a clue ? I don't know what all he was trying to say. Lets look at what we have

[Dogznova] I do

[tlm724] does it have to do with what lighters showed ?

[BondLady] MAYBE

[Dogznova] Open market operations start either October or November per CBI. Not sure why he has OCT or NOV

[BondLady] I still always remember they brought out new currency Oct 15

[Dogznova] if it says on the CBI.. It would say directly I would think

[BondLady] its in the monetary policy, maybe they got a new policy

[Dogznova] I will have a look

[BondLady] ty

[tlm724] open market operations AND Approval of transfer of purchase of Iraqi dinar currency to USD at the official rate of Exchange by the Central Bank of Iraq, under a documentary credit is opened in a bank in the country of purchase

[tlm724] imo they are definitely related

[BondLady] international banking

[tlm724] yes Bondlady, this looks good !!

[therealbubbie] at the official rate of Exchange

[lightingcslt] Dogznova thats definetly saying one for one under the letter of credit

[Dogznova] the CBI will be responsable for international transfers -- and it looks like the CBI is able to open a line of credit amongst the other world banks ..

[lightingcslt] Dogznova yes

[Dogznova] and the CBI will be required to do the transfers at the official exchange rate.. What ever that is at the time of transfer and Shredd been looking and saying this for quite some time.. He will probably like that report

[lightingcslt] Dogznova already emailed it to him - Dogznova everyone looked right over that one

[Dogznova] not enought fireworks in the title? did you all post the Aug 15th press release on the english side of the CBI ? it's on the main page of the CBI English side

[lightingcslt] Dogznova don't think so

[Dogznova] yes it's in the news section towards the bottom of the page

[lightingcslt] ok

[Dogznova] Aug 15th 2013. first press release thats been in english in quite some time

Iraqi retail Payment System Infrastructure Project link: http://www.cbi.iq/documents/Announcemen-en.%20%282013-d.5%29.pdf

[lightingcslt] what do you think timmy ?

[tlm724] lightingcslt I think its good news light and I think it is linked with what you showed !

[BondLady] light grab which ever art that came out of please

[lightingcslt] ok

[therealbubbie] lightingcslt it means there going to change the rate imo !!!!

[Dogznova] this is what I wanted to show shredd a while ago :Various strategies for the use of OMO are possible. The CBI might, for example, choose to provide for desired long-term monetary growth through the accumulation of foreign exchange reserves.

The monetary effect of higher or lower rates of foreign exchange reserve growth resulting from interventions to stabilize the exchange rate could be sterilized with OMO.

Otherwise OMO would be limited to stabilizing bank liquidity and keeping short-term money market interest rates within the tunnel of the CBI’ Credit and Deposit facility rates. OMO will generally by undertaken on an auction bases with banks. Such auctions will look very much like the foreign exchange auctions now being conducted.

[Dogznova] OMO is Open Market Operations

[BondLady] ok

[tlm724] The monetary effect of higher or lower rates of foreign exchange reserve growth resulting from interventions to stabilize the exchange rate could be sterilized with OMO

[Dogznova] OMO will generally by undertaken on an auction bases with banks. Such auctions will look very much like the foreign exchange auctions now being conducted.

[Shredd] An OMO is the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite.

Open market operations are the principal tools of monetary policy. (The discount rate and reserve requirements are also used.) The U.S. Federal Reserve's goal in using this technique is to adjust the federal funds rate - the rate at which banks borrow reserves from each other.

Now, I don't want to go too far out on a limb here but to me, this is defining what the cbi operations will be when the auctions cease and also when the dinar is on a market driven float.

The reason I say this is first, we know the auctions will cease once the rate floats and is free from being managed. This is a source of revenue but is primarily a tool for the cbi to manage the price of the dinar.

That said, an open market operation system allows the central bank to sell govt securities to do the same........to generate revenue while at the same time managing pricing. How?

Well, the fed funds rate is the base for all securities pricing such as prime, libor, etc. For me, in my world, this is not new news but what is key, again, is the preparations for the cbi moving to this.

Like I had in my last chat, securities trading is the foundational element that makes an economy strong and with the pending rating coming, preparations are being made for this. On August 11, Moody's Investor Services refers to Iraq as a "fast-growing, in particular the Kurdish region" (Credit Outlook publication, moodys.com).

[BondLady] free market right?

[Shredd] Right Bondlady, this is the sop (standard operating procedure) for a free market central bank.

[tlm724] or would be limited !

[lightingcslt] http://www.cabinet.iq/Ar ··· ?ID=3581

[Dogznova] yes this is what's going to happen when the currency auctions stop

[tlm724] Dogznova is there a date of publication on that ?

[Dogznova] tlm724 no.. its been on the CBI for a while now.. I read it a few months ago.

[tlm724] Dogznova ok ty !

[Dogznova] I can't find anything about Oct or Nov though

[BondLady] 38 09/03/ 2013 ------------------------------------------- 09/03/2013 4:29 pm The Council of Ministers held its thirty-eighth regular in Baghdad Tuesday, September 3, 2013 under the chairmanship of Prime Minister Nuri al-Maliki issued by the Board the following decisions:

1 - To approve the following: - Approval of the consolidated draft pension law auditor by the State Council and forwarded to the House of Representatives based on the provisions of Articles (61 / item first and 8 / item II) of the Constitution. –

Adoption of the recommendation of the Committee on Energy on the following: First / assignment of the implementation of the tender drilling 39 wells in Maysan fields / Maysan Oil Company and the Company cnooc Iraq on listed companies below and the total amount of 347,866,727,66 three hundred and forty-seven million, eight hundred and sixty-six thousand, seven hundred and twenty-seven dollars and sixty-six cents, on the the basis of the best technical bids and lower prices. –

Chinese amount of 73824353 seventy-three million, eight hundred and twenty-four thousand, three hundred and fifty-three dollars. –

China Bohai Corporation of $ 96.66624 million ninety-six million, six hundred and sixty-six thousand, two hundred and forty dollars. –

Company Weatherford U.S. in the amount of 82,395,512,9 Eighty-two million, three hundred and ninety-five thousand, five hundred and twelve dollars and nine cents and the amount of $ 94,980,621,76 four and ninety million nine hundred and eighty thousand six hundred and twenty-one dollars and seventy six cents.

II / extension of the Memorandum of Understanding processing of the Hashemite Kingdom of Jordan for the export of Kirkuk to the Kingdom by truck under a memorandum of understanding signed between the Republic of Iraq and the Hashemite Kingdom of Jordan and another year until 09.19.2014 and the same prices and conditions contained in the note

[BondLady] this one light?

[lightingcslt] yes

[BondLady] Pacific University College 2 - Gulf University 3 - University of Uruk 4 - University of statement - Increasing the powers of the direct purchase of medicines and emergency supplies to 500,000,000 five hundred million Iraqi dinars, or the equivalent to the U.S. dollar from inside and outside Iraq. –

Approve the transfer of the purchase amount from the Iraqi dinar currency to the U.S. dollar currency at the official exchange rate by the Central Bank of Iraq and the payment under the letter of credit is opened in banks in the country of purchase in the case of direct purchase from the outside when absolutely necessary. –

Adoption of the recommendations of the follow-up committee and the work of finding and producing electric power and the problem under the supervision of the Prime Minister under the Council of Ministers resolution No. 277 for the year 2013 and to approve the publication of the report with the assumption of the Committee on Energy follow up the implementation of the recommendations. LINK

[lightingcslt] Approval of transfer of purchase of Iraqi dinar currency to USD at the official rate of Exchange by the Central Bank of Iraq, under a documentary credit is opened in a bank in the country of purchase in case of direct purchase from abroad when absolutely necessary

[Shredd] I commented on the original post, but this is really speaking of administration of normal exchanges regarding LOC (letter of credit) cash movements. Now, I know I've talked about LOCs before but this is a credit enhancement tool where a bank guarantees the credit worthiness of the debt to which it is attached per se. In this context, the cbi is the guaranteeing or backing bank.

To me, this is all about the very near, pending change to a free market economy where OMO is going to take the seat of the auctions and again, this will take place when the issuing country (iraq) moves from being a dual currency country and stands on their two feet upon their own dinar. We all know what that means for us!

[therealbubbie] official rate of Exchange !

[lightingcslt] now look at this -- the Council of Ministers approved, on Tuesday, to convert the purchase amount from the local currency to the U.S. dollar official exchange rate by the Central Bank of Iraq.

"the Council has agreed to transfer the purchase amount from one currency Iraqi dinar currency to the U.S. dollar official exchange rate by the Central Bank of Iraq," indicating that "the payment will be Under the letter of credit is opened in banks in the country of purchase in the case of direct purchase from the outside when absolutely necessary. "

[lightingcslt] purchase amount from one currency Iraqi dinar currency to the U.S. dollar official exchange rate by the Central Bank of Iraq

[lightingcslt] the payment will be Under the letter of credit is opened in banks in the country of purchase in the case of direct purchase from the outside when absolutely necessary. "

[tlm724] so this is saying international (Banks) the dinar will be recognized and transferable

[BondLady] I think so

[tlm724] thats how I read it

[therealbubbie] tlm724 yep , may mean RV soon !

[tlm724] if they put value to it yes !

[lightingcslt] looks to me like Maliki already has

[tlm724] it means that we can go to a bank here in the US and have our currency recognized and IF it has value we can exchange it for the posted CBI rate

[therealbubbie] to convert the purchase amount from the local currency to the U.S. dollar official exchange rate

[BondLady] minus the bank fee thank you all !

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