Samson: The currency auction stops for a week as a result of banks’ fear of changing the dollar’s price
5th April, 2021
A government source revealed on Monday that the currency auction was suspended for a week due to banks’ fear of changing the dollar’s price.
The source said in an interview with Shafaq News that "banks have stopped participating in the currency auction that the Central Bank conducts daily during the past week due to their fear of changing the dollar exchange rate in the budget that was approved last week."
He added, "It is expected that the banks will participate in the auction and submit their requests to the bank to buy the dollar, starting from the current week," noting that "these requests will be implemented during the end of the week or the beginning of next week."
On Wednesday (March 31, 2021), the Iraqi parliament voted on the federal budget law for the fiscal year 2021, with a deficit of more than 28 trillion dinars, and a tug of war that lasted for months.
The general budget revenues amounted to more than 101 trillion Iraqi dinars, while expenditures were estimated at 129 trillion dinars. And some political blocs had called for a reduction in the price of the dollar in the budget, which made the price of the dollar affected in the local markets between the ups and downs. LINK
Samson: A source reveals that the auction sale of the work has stopped
5th April, 2021
An official in the Iraqi Central Bank said, Monday, that the currency auction has been suspended since last Wednesday, due to the failure of banks to buy the currency from the auction, fearing that the budget will be approved in a timely manner and its impact on the exchange rate.
The source said to "Tigris", that "banks have enough reserves to trade for a number of days without buying from the currency auction."
He added, "A number of banks have submitted the purchase request for currency from the auction, but the auction will resume on next Sunday, the beginning of the new week." LINK
MilitiaMan: They have enough dollar reserves to get them through until a new exchange rate is applied, hence the fear of buying now. We have been told that this would happen in the past. They told us dollars will get scarce before the new dollar will be used again. So by staying out of the market reduces risk.
With all the international contracts coming in, they’ll need an international exchange rate applied for to facilitate the foreign exchange with freedom of capital.
They also note that the budget will be applied in a timely manner while dealing with the exchange rate. All within this week or so.
They are selling the dollar this week but it won’t be applied until later this week or early next week.
In other words a rate will or should be applied during this week to be revealed at some recent period in time to come..
Will that rate leak out, maybe not? We shall see. There were articles to support that an exchange rate change is coming. The citizens are getting hammered in respect to goods services, pricing, etc..
This article above is one to support that thinking, as well. Franks information with the meetings that are ongoing with FAB 4, also supports this thought.
So, I feel comfortable knowing that the fear of the buying the dollar is a sign of a big change thus the closure of the auction. No one wants to be holding the bag and be on the wrong side of a trade with a big move expected to come.. That can be disastrous in magnitude..
Therefore, the planning had to be done down to the wire and that wire got started Wednesday of last week so they say.. 03/31/2021.
Let’s see what the next 24-96 hours brings!! Real close anyway!! imo, it shall be interesting to say the least! I