"Bye Bye Auctions" - Mon. AM KTFA Thoughts/News 12/31/18

by **Ssmith** Tue Jan 01, 2019 11:16 am

KTFA

Sunkissed » December 31st, 2018

The auctions will stop in my opinion and here's why:

Once the IQD is in the open and free market, on Forex, the need for using auctions for conversion are unnecessary, because Forex becomes the simplest tool for conversion of the IQD to ANY other currency -- they will no longer be limited to only converting to the USD. They will be able to exchange the IQD to the Yuan, to the USD, to the Pound Sterling, etc. etc.

This is why the Auctions will cease to exist - once the IQD is fully convertible/on Forex in the open retail currency market. Remember that Frank has taught us in the past, that the Auctions won't be "recognizable as we know them now."

It makes perfect sense, that prior to putting the IQD on forex, they would have to set up licensed Brokerages to be able to make the trades - and of course they would get their percentage from that, just as banks get theirs (spread).

Think about it this way:

If they are using the tools of Forex and brokerage firms to buy and sell the IQD and convert it to other global-wide currencies, why would they even need the auctions? Especially, when we already know, that the only reason for the auctions was to maintain the 2% compliance and convert to the USD. Other open market economies do not use auctions because they use the Forex tools within the Forex platforms.

Iraq will be like the USA in that, their currency will be fully tradable. The USA doesn't need auctions - neither will Iraq.

Then you ask perhaps: How will they manage the currency value without the auctions? The value becomes managed with Forex market pressure AND/OR manipulated by the CBI via buying and selling their own currency to themselves via Forex.

Great Britain did this exact thing, September 16, 1992 when George Soros tried to break the Bank of England/pound sterling. The Bank of England rallied - mightily - and began buying their own currency in HUGE volumes. But they started too late, and Soros did manage to break the pound. The day is called Black Wednesday and it took England years to recover from it. What the Bank of England did actually, was take advantage of the tools of a Dirty (managed) Float.

The majority of countries today are on a managed float in order to be able to manipulate the value of their currency to avoid such events as a George Soros Black Wednesday. They are not bound to when they can raise or lower their rate, nor to percentages. All countries buy and sell their own currencies TO THEMSELVES in this manner.

It's very easy to see examples of this with the Chinese Yuan and Venezuela where they have HUGE fluctuations in their Forex rates. They are utilizing the tools of Forex to mitigate unwanted changes to their currency values.... certainly not to leave out the options of treasury bonds, and the MANY platforms within the Forex system of Open Market Operations.

I hope I explained this fully as it is something I have been studying my tush off, ever since I learned about the PCC and various platforms of the Forex Market.

BYE-BYE CBI AUCTIONS! -- all in my opinion of course.

Jay » December 31st, 2018

IMO Bond sales and foreign reserves will be why the auctions will never stop. Just like the USA with our Bond sales, foreign reserve purchases, Treasury Bonds, Debt Bonds etc. Its not called an auction here but it is none the less buying & selling of monetary products. Whether they are auctioned to the highest bidder is beyond my knowledge but they are bought and sold.

The CBI making this kind of move is saying the only ones who are allowed to buy & sell these products are Internationally sanctioned banking entities. Brokerage houses, banks, Mutual fund houses etc etc. And yes Currency is included. All imo.

Blinkster » December 31st, 2018

Peeps, no matter how you slice it... auctions continuing or not, this afternoon's announcement from the CBI:

"The Central Bank allows companies to mediate the sale and purchase of foreign currencies"

...is UBER HUGE. GARGANTUAN!! IMO IMO IMO. And very telling.

Samson » December 31st, 2018

Prime Minister: We need a complete change of economic structure

30th December, 2018

Prime Minister Adel Abdul-Mahdi on Sunday stressed the need for a complete change of economic structure to reduce dependence on the federal budget in development.

"The government needs to make full changes in the economic structure to reduce the dependence on the financial budget in the development process," Abdul Mahdi said at a weekly press conference attended by the agency.

"There is a large and growing global momentum towards Iraq for the purpose of investment," he said. LINK

Don961 » December 31st, 2018

The streets expected to be cut this evening to ensure New Year celebrations in Baghdad

31/12/2018

(Independent) ... A security source in Baghdad, Monday, the streets expected to be cut in the evening in the capital.

"The security plan that will be implemented this afternoon to ensure the New Year celebrations in Baghdad has no cuttings," the source said in a press statement. "There are expectations that a number of roads will be cut if necessary."

The source, who asked not to be named, said that "the streets expected to be cut off today near the National Theater and Failaka Kahramana, in addition to the spring street in the Zayouna and Mall Zayouna," adding that "the street park Zora and Mall of Baghdad and Baghdad Tower is also expected to cut in front of Traffic wheels, in addition to the intersection of pioneers in Mansour. "

On Sunday, a security source disclosed the details of the security plan for the New Year celebration. He said that it would be implemented from the afternoon of tomorrow. He said there would be a security deployment for patrols in front of restaurants, parks and banquet halls. Will have a role in securing and observing any suspicious situation. link