Dinar Observer Daily

Mountain Goat – Dinar Guru …we must go back to what we know for sure. The CBI confirmed that the Bona service will be launched on the tenth of February. …Bona is a platform that provides real-time clearing and settlement services for cross-border financial transfers between Arab countries and in Arab and international currencies. I am not predicting a date for the RV just do you know…If the Iraqi dinar is on Bona (which they announced it is) this may get a revaluation of the Iraq dinar in the middle east but not necessarily the reinstatement we desire which allows us to go to the banks in the USA. We might have to wait longer until it is connected to the other currency exchanges throughout the world, especially FOREX. Remember we need a reinstatement and a release of OFAC sanction to allow us to exchange our dinar. Incidentally the ISX (Iraqi Stock Exchange) is now experiencing rapid growth of about 25%. WOW!

Dinar Investor – Jeff   This news is red hot.  Article:   “The World Bank: Iraq is experiencing its worst crisis since 2003…We put a large financial portfolio for it – Urgent”   …The World Bank just came out this morning releasing an article screaming at us that Iraq is about to change the rate…the World Bank and the IMF are working with Iraq to bring forth the rate change.   It’s over and done.  All you’re waiting on is the fiscal year [March 2021]…this is red hot news!

MilitiaMan – Dinar Guru   …BUNA is to go live on the TENTH.. The CBI has a new digital system they launched. The CBI states they have approved the new exchange rates. Well the first one was done already, the next rate change is to yet come out. But the CBI states they have approved the exchange rates. The BUNA system by charter will not interconnect to a Non – Article 8 Compliant Currency i am being told. So, the next move is imo to be Article 8 compliant. If they hold to the time frame of the TENTH, then this next week is an interesting one IMO…

MilitiaMan – Dinar Guru  Article quote:  “The Central Bank of Iraq had previously signed an agreement with a number of local banks and completed the technical requirements to participate in the project in coordination with the Arab Monetary Fund,”  Get ready for digital currency…Digital currency will need to be able to communicate on a level playing field. It is said they have this next week to be interconnected with the BUNA system that the IMF has launched for clearing and settlements. They say the TENTH!!!

MilitiaMan – Dinar Guru  “Economic: Parliament cannot change oil prices and the dollar in the 2021 budget”  So they have it now set in stone. The Central Bank approved the new exchange rates and they are not to be challenged by the Parliament, as it is is out of their hands. The exchange rates are not to be amended…They were told by the IMF that they would change the rate in the then current fiscal year and they did it. They were also told by the IMF and the US FED that they could in the IMFs case change it again in early 2021 whereas, the FED just made it perfectly clear that countries can and do “Devalue and Revalue” their currencies.  [post 1 of 2]

Militiaman – Dinar Guru  Article:  “Al-Karawi: 5 files have not been resolved yet in the budget law”  Quote:  “All expectations indicate that the next week will be decisive…”  Next Week starts tomorrow. The data…suggests they have voted on many things. Much of it suggests they are going to be going to the private sector. Automation of Customs and Taxes link via the currency window of the CBI. The final nail is coming…imo.. [post 2 of 2]

Mountain Goat – Dinar Guru   Oh yeh, the budget has a new rate in it… It’s the new de-valued rate of 1450…Okay having said this they can still delete the zero making the rate $1.45 dinar to $1.00 dollar (inside Iraq). This could happen suddenly after they pass the budget.  I doubt it will but let’s explore it…the strategy of reducing the value of the dinar has cut their deficit in half. But what will happen to it when and if they raise the value of the dinar to $1.45? It will explode but can they handle this with proposed loans from the IMF? Time will tell what they do.

Kaperoni –  Floating would harm the economy right now…without exports and a private sector, the dinar would devalue. Until they pass laws, create a private sector and invite foreign investment and diversify Iraq will continue to struggle. Only Iraq can change it.  In the meantime, Sudan is preparing to float. …Article quotes:  “Sudan’s Acting Finance Minister said in an interview this week that the country will make a decision to float its currency when it has sufficient foreign reserves, and that it is also in talks with several parties to obtain loans and grants.”; “We in the government must commit to unifying the exchange rate, and the decision to float the currency will be taken after the provision of foreign reserves in the central bank, along with economic policies that regulate supply and demand,”…

Dinar Investor – Jeff   Article:   “Parliamentary Finance meets with official from the World Bank”  In the past they’ve never really had the World Bank and the IMF involved with budgets.   The reason they have the World Bank involved with this one is because this budget is now linked to the rate change.  It has reforms in it which the World Bank has financed.  Because they financed the reforms they need to monitor what happens in Iraq financially because they have a vested interest…payments  can only be paid back to the World Bank with internationally recognized currency.

MilitiaMan – Dinar Guru  Article:  “Sairoun: Raising Or Lowering The Exchange Rate Of The Currency Is The Exclusive Authority Of The Government”    The reducing the price of the local currency is not going to happen again. 1182 Didn’t work 1190 didn’t work nor will 1460 if left with out deleting the zeros from the exchange rate. imo

Kaperoni – Dinar Guru   …there is no intent to redenominate the dinar…First it would take parliament approval, and second their would be no reason to encourage exchange and settlement among middle east countries (Buna) and eventually the world if they were planning to redenominate (LOP) the dinar.  Not to mention, Iraq has had less than 3% inflation for the past 20 years. The plan for Iraq is like other middle east countries which is to diversify, create stability, employment and a private sector, foreign investment to improve the economy and create economic growth…only then the dinar can appreciate as a result. There has never been one indication that the IMF would support such an event, in fact they speak of allowing the currency to rise. Even the recent devaluation was not random, but an attempt to preserve the central banks reserves as well as meet compliance with the IMF. It is well documented…

Dinar Investor – Jeff   Article quote:  “the idea of raising the price of the dollar is an international policy shared by the Ministry of Finance, the Ministry of Planning and the Iraqi government, especially the International Monetary Fund.” …since they devalued the currency on December 20th the World Bank and the IMF have been putting a big emphasis on Iraq bringing forth this rate change, get the reforms going and improve Iraq’s economy…

MilitiaMan – Dinar Guru  Article:  “Advisor to the Prime Minister: Creating new electronic payment cards that will enhance the advancement of services provided to citizens”   DIGITAL MONEY!!! I seriously like to hear this. They told us about this… It is and was part of the plan of a level playing field. Get ready to be cashless than before. They told us there would be a smaller amount of currency in circulation. Well when they adjust the exchange rate accordingly they will need less cash. As it will be worth more…imo

MilititMan – Dinar Guru  Article:  “Al-Yasiri: The Central Bank’s initiatives have contributed to employing the unemployed and moving stalled projects”  Quote:  “the aim of changing the exchange rates is to support the Iraqi product in competition with imported products…He explained that “some sectors will respond immediately to this change…”  I would have to agree that the response will be immediately. They change the exchange rate and the markets respond in like kind. And in a big way. Contracts will require it!!! imo.. The news is off the charts good…the way they are talking today and yesterday. Comprehensive development process have been on going and we are now finally see the fruit of it all! imo

BGG –   …for the first time, maybe ever – they are actually using language that implies some tie of “raising the exchange rate” to the new budget?!?

BGG ~ Kinda’ odd how this was edited to look a certain way.

Here’s the full context – and I wasn’t downing anyone, just pointing out the irony of what we are seeing vs. what has been portrayed all along. JMHO.

MilitiaMan – Dinar Guru   Article:  “Parliamentary Finance expects: Approval of the 2021 budget within the next two days”  I cannot imagine, them not passing this week for a vote. They know there is to much at stake now. There is apparently no going back now… Way to much has been accomplished…imo.

Adam Montana – Dinar Guru     [Iraq is trying to defer payment of debt to Kuwait because of their current financial crisis.  What does this signify in regards to an RV?  If the deferment is granted, does this affect the timing?]  In regards to an RV, I say it signifies nothing.  Iraq has always tried to plead poverty and defer payments and anything else they can do – just like we would expect any other country to do.  The payments are in dollars, not Dinars… this means that after they RV, it will be easier for them to repay. In fact, it makes sense to stall payments until after the RV if possible, because they will effectively pay less that way. Or at least have more to pay with, but I don’t think their payment schedule will change for them. It’s just better for them all around that way.

Kaperoni – Dinar Guru  If we are to get excited about anything in Iraq of late read up on the Buna payment system. This will create demand and facilitate exchange in Middle East currencies. The end result could be growth of the Iraq economy and an increase in the exchange rate. Time will tell…

Adam Montana – Dinar Guru   [I truly believe the “HCL” will be done simultaneously with the Budget 2021 or immediately afterwards…Your thoughts?]  I’m mostly in agreement there! It certainly could be done simultaneously with the Budget, but that doesn’t mean it has to be done simultaneous…however, the timing certainly is good. I’m hopeful.

RVAlready – Dinar Guru  Time to finish the RV. I’m sure the rate has been set by now. Just waiting for CBI to announce. Ready for the number!!!

Kaperoni – Dinar Guru  The Buna payment system which is part of the Arab Monetary Fund announced a few months ago that the Iraqi dinar would be joining the program. Today, they announced a relationship with JP Morgan Bank for settlements in US dollars. This is significant news.

Petra – Dinar Guru  Article:  “Finally, the 2021 budget is ready for approval in Parliament”   Quote:  “the Parliamentary Finance Committee will, next week, distribute copies of the revised draft of the Maronite law to the heads of political blocs 24 hours before the date of the voting session on the budget law.” The source pointed out that “next Monday is the day set for resuming parliamentary sessions and voting on the budget law.”  So, IMO, BIS requires at least 24 hours notice prior to any formal rate change within all CB’s around the world. They, in turn, relay that information back to all the CB’s globally.  Now, if you read what I just posted the final “draft” will be sent…24 hours prior to the vote. Interesting timing. This may be something, maybe nothing, but it sure falls in line with rate before budget. They are to vote on Monday as Tuesday is their “last day of session!” So, timing is sure unique and allows the ledger to reflect the rate change retroactively back to Jan 1. Again, IMO.

Dinar Investor – Jeff   Article: “Shocking parliamentary warning: The dollar may rise to 500 thousand dinar”  …this is not even from the Central Bank…this article is pure trash…Anytime financial information is put out in the news if it’s not from the Central Bank I would be very careful trusting it.  Be careful trusting only one single article…  Article:   “Parliament intends to reduce the dollar exchange rate in the budget“.   Here’s what they’re really going to do…they have to.  Their inflation is rising and they have to bring it down.

Adam Montana – Dinar Guru   [Do you think Iraq will go to a digital currency?  And Do you feel it will happen at the same time, before or after the rv?]  Eventually, yes. After.  The timing for an RV is good now. The timing, technology, etc for converting to digital isn’t quite there at the moment.

Dinar Investor – Jeff   They’ll have the budget done by mid-February.  That’s all that matters.  The exact timing of this has nothing to do with the rate change.  Even if they complete the budget in a week or two it has nothing to do with the timing of the rate change.  The rate change will have everything to do with the timing of their fiscal year…Iraq is walking in Kuwaits footsteps…Don’t forget Iraq kind of already gave you the rate change date  – when they devalued the currency on December 20th.  That was a 90-day tool for the rate change…to reduce the dinar note count and get more 3 zero notes out of circulation within the country of Iraq…you guys are in the best spot you’ve ever been in.  We’re looking really good…

Adam Montana – Dinar Guru   [Will the cancelling of the Keystone XL increase demand for IRAQI oil and thereby the PPB?  Could this be a Precursor to an RV?]   That’s a great observation, and I think it’s 100% in Iraq’s favor! Anything that drives the price of oil up, and does not take away from Iraq’s ability to produce and export their own product, is good for Iraq. This is one such example.

MilitiaMan – Dinar Guru   Article:  “International Monetary Receives an “emergency request” from Iraq”  Yep… They are not going to do that for a program rate… More to the story and the story is economic success, hence, the support from the IMF… There is give and take and Iraq is ready to give now.. imo..

Mountain Goat – Dinar Guru   …If the reinstatement was going to happen, we would have seen an education period followed by the project to delete the zeros in December followed by the reinstatement in January. This is the process and each step takes time. Is there still a chance to see the reinstatement any time soon? As long as the 2021 budget is not yet opened there is a slight chance, a very slight chance, it can still happen. This is only from a technical standpoint not a practical standpoint. There is a difference.

Pimpy – Dinar Guru  Article: “Another Arab county joins the club of normalization with Israel”  This is very very dangerous for Iran…it’s gonna make it very hard for Iran to bully these people around…This is a continuation of what Trump started…this is good.  It really is…these people are all in the Middle East and we need peace in the Middle East…

Adam Montana – Dinar Guru      [How’s the impact of the latest suicide bombing and the affect of biden if any?]  Although both are tragic and unfortunate, I see no impact from either of those.