Dinar Observer Daily

Samson – Dinar Guru  Article: ”Visit of Prime Minister Mohammed Shia’a Al-Sudani of Iraq to the White House”  Quote: “On April 15, President Joe Biden will welcome Prime Minister Mohammed Shia’a Al-Sudani of Iraq to the White House to coordinate on common priorities and reinforce the strong bilateral partnership between the United States and Iraq.”

Clare – Dinar Guru  Article:  “For the first time, dollarization decreased by 20% in Iraqi markets”

Mountain Goat – Dinar Guru   Article Quote:  “...Iraq will leave government cash dealing and switch to 100% electronic collection in mid-2024.”  So, by reading today’s article on the surface it seems that Iraq would be doing away with all paper currency as they said “switch to 100% Electronic collection by mid-2024”. But I assure you this is NOT the case… it does NOT say they are doing way with cash altogether, as the Dr. Shabibi plan that I know and have been following very diligently does not indicate this either…this will be a huge milestone in the banking reform process...Iraq has been struggling to get the electronic payment process completed and now they are telling us it will be completed by mid-year 2024. WOW! WOW! WOW!

Pimpy – Dinar Guru  Article: “Iraq’s accession to the European Bank for reconstruction and development”  This is another step for Iraq to start working with the International community.  This shows outside investors how serious Iraq is of getting back on track.

Clare – Dinar Guru  Article:  “Iraq’s accession to the European Bank for Reconstruction and Development”  Quote: “The Iraqi Fund for External Development in the Ministry of Finance announced on Wednesday that the Republic of Iraq has joined the membership of the European Bank for Reconstruction and Development (EBRD) after the House of Representatives approved the accession law.”

Militia Man – Dinar Guru  1310, 1460, 1182…they didn’t go international with that…Why would you today at 1310?  It doesn’t make any sense…They had oil at $3.22 to 1 [Back in Saddam’s day]…If you reinstate with oil at…$80 to $85 a barrel today ($35 to $40 a barrel back then) and they increased their production since then.  Even on that one thing, lopping their currency is ludicrous.  It makes no sense to anyone that does basic math.

Pimpy – Dinar Guru  The gap between the official and the parallel market exchange rates…is starting to get smaller.  Remember they have to be within 5% consistently for a length of time and it absolutely looks like Iraq is accomplishing that so congrats to Iraq.

Clare – Dinar Guru  Article:  “The battle for the dollar is nearing its end…a sharp decline in exchange rates”  Quote: “The prices of the US dollar against the Iraqi dinar closed lower in Baghdad, today, Thursday, with the stock market closed.“

Tishwash – Dinar Guru  Article:  “Adviser to the Prime Minister: The decline of the dollar is an indicator of the strength of the dinar and a tangible success of the economic policy”  Quote:  “The financial advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed the strength of the dinar against the dinar after a relative decline in the exchange rate.”

Dinar Investor – Jeff   The next big step in this is we want to see when Iraq will be amending their budget…They can amend it before or after the rate changes…

Pimpy – Dinar Guru    If they’re going to do a re-denomination and a reevaluation at the same time then I guarantee the notes they’re going to use are going to be the lower denominations.  So instead of getting $3 per dinar for a 25000 note, you’re going to get $3 per dinar for a 25 dinar note.  You can jump up and down and have a fit all you want.  I’ve been telling you guys this is what’s going to happen [If they re-denominate].  This is great for the Iraqi people…They’ll be happy about the change in their wealth but the western people will not even have a taste of it…I keep warning you guys about this… [Post 1 of 2]

Pimpy – Dinar Guru  The official exchange rate, that’s the one we want to change but surely wouldn’t want it to change with new re-denominated currency with the deletion of the zeros.  I want a nice fat $3.00 to 1 Iraqi dinar exchange rate with the currency we have now. (Post 2 of 2)

Militia Man – Dinar Guru  Article:  “A specialist points out the reasons for the noticeable decline of the dollar in Iraq: It will reach the official price”   We have been told inflation has been contained to about 3.7% and the Iraqi dinar has ample cover with over 15 months worth of imports over the standard or more typical 3 months. They have increased gold by about 43 tonnes.  They have a new ASYCUDA system for oil and non-oil revenue streams.  A real effective exchange rate will be an additional tool to curb the illegal parallel market and quickly imo.

Mountain Goat – Dinar Guru   …another article came out from the CBI telling us about yet another step in the RV/Reinstatement process is about to be implemented…The reinstatement is coming and I firmly believe from what we now know we are about to witness the major part of the Banking Reforms that everything else was geared up to support over the past 10 years.  Iraq is now slowly getting out of the sanctioned mindset / banking practices and return to common international banking practices of how they will be doing business with the rest of the world. Yet more evidence of it this period of news in March.

Pimpy – Dinar Guru  Think about it.  The current Iraqi dinar of 25,000 dinar – they delete the zeros off, now becomes  25 dinar and then all of a sudden they change the exchange rate from where it is to $3.22 per dinar.  This is good for the Iraqi  people, their purchasing power has changed.  They can get a lot more things bought with their money.  But that doesn’t help us  because they lopped the zeros off…so instead of getting a $3.22 rate against a 25000, we’re only going to get that $3.22 rate against a 25 dinar.  Instead of getting millions you get thousands…At least be aware that that’s possible.

Kaperoni – Dinar Guru  If Iraq is unable to achieve diversity they will have no alternative but to simply just delete the zeros (LOP) which is a neutral event reducing the currency from around 80 trillion to 80 billion dinar. Any exchange rate gain would be minimal as a result.

Sandy Ingram – Dinar Guru  There is absolutely no law against carrying large sums of cash…You can travel with as much money as you want.  However, there is a catch.  If you are entering or leaving the Untied States with more than ten thousand dollars in cash or equivalent, you are required to report it to customs and border protection.  This rule applies whether the cash is in U.S. dollars or in a foreign currency…You need to complete a “FinCen 105 form”…What happens if you don’t report more than 10 thousand dollars in cash?  Failure to report can lead to seizure of the money…You may also face criminal charges...Remember these rules…it’s always better to be safe than sorry.

Dinar Investor – Jeff   This weekend coming up would be the historical anniversary date of when Kuwait reinstated their currency – March 24, 1991

Militia Man – Dinar Guru  Oil is anywhere from $88 to $85 right now.  Add in the tax revenues and customs duties and fees at the borders, the tourism you got to see the exchange rate of the Iraqi dinar is not going to be at $0.76.  They’re going to have to add that real effective exchange rate to it and that’s probably…exactly why they haven’t exposed it just yet.  It’s a sensitive issue.  They need to keep it close to the chest… They can’t go out and tell everyone on the street, ‘Hey you know next week your exchange rate is going to be X.’  It doesn’t work that way…Eventually they will expose it…

Pimpy – Dinar Guru  They are going to amend the budget with or without a rate change.…Does it make sense for you to release the budget before they increase the exchange rate because then you have to turn around and redo the budget and make all the changes to the budget using the new exchange rate.  So no, it doesn’t make sense to release the budget before you change the exchange rate.  You would change the exchange rate then go through and amend all of your budget because the money you’ve allocated obviously has changed…The suspension of the funds has to do with corruption.  The reforms can be activated without changing the rate.  They’re going to reallocate revenue from oil to help fund all these reforms…

Dinar Investor – Jeff  Iraq technically does not need to amend the budget if they’re not changing their rate.  The budget already covers their operating expenses.  But they would need surplus funds to cover the reforms.  The reforms are contingent upon the rate changing.  They can’t bring these reform package forward if the rate does not change.  The only reason they’re amending the budget is because the rate is changing…The step of amending the budget can happen either before or after the rate changes … They will probably announce Thursday or Friday as to when they plan to amend the budget, which they’ll probably do around this weekend..

Militia Man – Dinar Guru  If Al-Sudani says, the dinar hold on to it, it’s going too be stronger than the dollar…$0.76 is not stronger than the dollar.  Add the real effective exchange rate and you can easily get over a dollar…

Yada – Dinar Guru   Be of good cheer folks, this is unfolding before our eyes…what we are are expecting is taking place…The articles last week regarding the 1.32 in Iraq was telling the people what to expect. The salaries, contracts, infrastructure are at a point the REER [Real Effective Exchange Rate] will activate it all…Today-tonight is very good for us.

BGG ~ More COMPLETE NONSENSE. Firstly, 1.32 was clearly referred to as the Dinar side of the Dinar/Dollar exchange equation… making the inverse (the USD side) more like .76 USD. Secondly, all of this hype started with Maliki’s crew theorizing what Al-Sudani might want to do… as a way to make him more popular with his supporters. That’s it.

Pimpy – Dinar Guru   Deleting of the zeros means a re-denomination.  Article quote:   “The Iraqi government is currently weighing the question of changing the currency…”  CHANGING THE CURRENCY.  It didn’t say exchange rate. What is says is currency… Definition “Re-denomination is a government policy in simplifying currency values without changing the exchange rate.”  …If we can get them to change the exchange rate without removing the zeros then we’re sitting pretty…

Clare – Dinar Guru  Article: “Iron and Steel Company: Iraq is on the verge of a major industrial revolution”

Dinar Investor – Jeff   One of the major things Iraq has to do before they can revalue the currency is they have to pause all of their money.  They have to suspend it.  Freeze it.  As of Friday both the central bank and the government of Iraq paused and froze all their monies.  What does that mean to us?  …By them suspending all of their monies between the central bank and the government that makes this [past] weekend…the first eligible weekend for Iraq to be able to revalue the currency…

Militia Man – Dinar Guru  Al-Sudani…talked about having the dinar be 1.32 dinars to the dollar…turns out to be around $0.76.  That’s a big bit of purchasing power for the citizens.  Is it what they’re going to end up with in the future based off all the natural resources that they…all the non-oil maximized income…tourism, all the extra stuff you never had when Saddam Hussein was in office?  Saddam Hussein’s $3.22 to 1 dinar was based off about $35 a barrel of oil.  Oil is pushing $85 today…They have surplus money coming from all these different places...

Clare – Dinar Guru  Article:   “Al-Sudani intends to visit Washington to lift the ban on banks prohibited from dealing in dollars”  Quote: “The head of the Iraqi Securities Commission, Faisal Al-Haimas, announced that three Iraqi banks were sanctioned by the US Treasury, and 25 banks were banned from dealing in dollars.“

Pimpy – Dinar Guru  Everyone is excited that Iraq has completed all the requirements to join the World Trade Organization but the bigger question is what’s next for Iraq?  …There’s this impression going on around the Iraqi dinar community that this is going to happen next week or next month.  Is this true or could the process take longer?  …What’s remaining for Iraq?  Approval by the general council…which is composed of all WTO members. …As of now they don’t appear to be on the calendar to be voted in…We got between now and June to see if indeed Iraq is added to the calendar…unless for some reason the WTO holds a special session…

Militia Man – Dinar Guru  Article: “Parliamentary Finance: The federal budget is in the corridors of the Council of Ministers, and there is no specific date for sending it”  Quote:  “On June 12, 2023, the Iraqi Parliament approved the tripartite budget law for the years 2023, 2024, and 2025.  Last year’s total budget amounted to 197 billion dinars, which is the largest in the country’s history.”  Take note that they used 197 Billion Dinars. That is a little over $150 million USD at the current exchange rate of 1,310 IQD… Seriously? I do not think so, unless they have done something we have yet to see.