Dinar Observer Daily

Militia Man – Dinar Guru  If they haven’t gone to the international stage of 1310 and they haven’t done it today, the chances of them doing it are highly unlikely the International world would accept Iraq at 1310.

Breitling – Dinar Guru  What makes you think they were going to revalue their currency?  They were depending on going international…and provide for the big boys – China, United States and Western Europe.  That’s still their plan they’ve never changed it.

Militia Man – Dinar Guru  [Financial] systems are in place that have been updated, modified and now they’re waiting for Iraq to be ready to go to the global financial system.  Once they get to that stage they’re going to be an Article VIII IMF compliant currency.  That’s our expectation…That’s what they’ve been saying for quite some time.

Enorrste – Dinar Guru  There is no such thing as an RV.  That’s the bottom line right there.  There’s a float leading to growth.  We can hope that it’ll grow fast and I suspect that it will but there certainly isn’t going to go from 1601 to $3.50 overnight.  It just can’t happen.

Militia Man – Dinar Guru  Article Quote:  “The parliamentary economic committee stands with the government and the central bank in fighting the speculators at the exchange rate…”  Everybody’s in agreement we need to fight this parallel market – we need to shut it down.  Again, what is the easiest way to shut it down?  Change the exchange rates to a Real Effective Exchange Rate shuts is down.  In a broad sense that’s what they’re actually saying without saying it…

Militia Man – Dinar Guru  …Alaq, the Central Bank Governor, he’s not new to Iraq.  This man’s been involved for many many years.  He led the Arab Monetary Fund.  He spent time there as the head honcho and now he’s back here to do what?  To finish this process.  He recently stated the Iraqi dinar and/or subsequently the project to delete the zeros from the exchange rate still exists.  If anybody’s telling you this is a joke you really got to think about it and say did he really say that?

Nader – Dinar Guru  What’s slowing down the RV…and it’s going to slow it down more and more until they find a solution for it.  It’s not the HCL…budget….What’s slowing down the RV is the corruption...You guys have no idea how much corruption going on in Iraq…It’s like a big mafia…bigger than the government for now…It’s going to be a big fight…When the corruption goes to 20%, 15%, 10% that’s where the RV is gonna happen…

BGG ~ You mean… just like here in Washington??

Sandy Ingram – Dinar Guru  Jeanine Hennis-Plasschaert, UN Special Representative in Iraq “Pervasive corruption is a major root cause of Iraqi dysfunction.  And frankly, no leader can claim to be shielded from it.”  There will be little to no increase in currency value in Iraq until multinational companies can safely invest in Iraq without corruption or safety issues.

Samson – Dinar Guru  Article:  “Adviser to the Prime Minister: The financial situation in the country indicates a high degree of stability.“

Militia Man – Dinar Guru  The House of Representative …Central Bank of Iraq…the legal departments all got together.  What are they talking about?  They’re talking about implementing allocating and spending money for this budget.  Anybody thinking this is not happening I have to disagree with you…

Clare – Dinar Guru  Article: “urgent… After a long wait, the Ministry of Finance finally publishes the instructions for implementing the budget“

Militia Man – Dinar Guru  It’s been weeks…and still to this day they haven’t actually shown us the spending ability of the budget.  Why is that?  It’s obvious – they’re not coming out at 1310, 1320 or 1305...

Tishwash – Dinar Guru  Article:  “The Sudanese government acknowledges the experience of dollar speculators and counts on September”  Quote:  “The launch of the budget definitely means the availability of funds… and this means that there is a large cash flow. ”  Al-Awadi added, “Many financial advisors in the government hope, with the release of budget funds, that next month will be a catalyst for the very large decrease in the dollar exchange rate.”

Militia Man – Dinar Guru  Article:   “The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises”  Quote:  “…The National Currency requires elaborate measures to maintain strength in value internally and externally, on the basis of the measures to be taken will activate the private sector and expand the import and reduce exports.”  I may have this wrong, but, to build out the country, they need to do just as it is being stated. They need to take extreme measures to get the imports increased and the exports reduced. Why? Because, it is far cheaper to re-build the country with strength in the national currency. It is the foremost item that is now needed.

Samson – Dinar Guru  Article: “The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises”  Quote: “The sources of countries’ strength in the economic field are determined by several factors, foremost of which is the national currency, which requires elaborate measures to maintain its strength internally and externally, and the basis of these measures is to activate the private sector, expand the import sector and reduce exports.”

Pimpy – Dinar Guru   Article:  “Oil and gas…A law to resolve the dispute between Baghdad an 8th region, and a gateway to open all files”  The oil and gas law issue has not been resolved.  This has been ongoing for years…the hang up has a lot to do with the oil fields that were found after the constitution was written and they’re saying technically it belongs to them but Iraq is saying, no, those still belong to us…

Militia Man – Dinar Guru  The Oil and Gas Law…they keep saying they’re going to have things done.  I believe these guys have already done almost all the leg work… Article quote: “they’re in very advanced steps in accelerating the legislation of the oil and gas law…”  They’re basically saying we’re going to approve the law end of story.  That’s phenomenal…

Clare – Dinar Guru  Article: “What are the reasons for the weakness of the Iraqi dinar compared to other currencies? … An economist answers”  Quote: “Al-Mashhadani said, The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq’s markets, as a result of the large discrepancy between import and export, it is natural that there is a great demand for dollars…The Iraqi dinar has been in an unenviable situation for nearly 20 years. After one dinar was equal to 3 and a half dollars during the past century, it reached more than 1550 against one US dollar, which caused problems in the Iraqi economy.”

Militia Man – Dinar Guru  If you’re trying to buy widgets at 1310 dinar to a dollar you can’t get very many widgets…Once they change the value of their currency to reflect the Real Effective Exchange Rate things become a lot cheaper for Iraq especially if they have the backing to prove they have…oil, gas, natural resources, tourism – all those things…they can easily meet a similarity to Kuwait.  They’re a bigger country, they have more assets…They have everything going for them…they’re definitely undervalued at this time.

Militia Man – Dinar Guru   Article “Towards a new global financial system Economical”  This article doesn’t go so far as to suggest Iraq is in the running or even applying to be a member of BRICS. Iraq may fall into the category of interested and monitoring developments while collecting and analyzing information.  We will be watching close…

Breitling – Dinar Guru  Look at all the countries surrounding Iraq and you look at the values of the currencies and you average it out.  They don’t want to be below that average.  They don’t want to be too far above that average because they’d be too expensive to do business with them.

Kaperoni – Dinar Guru  Iraq made a decision some years ago that they want to raise the exchange rate based on the economic success of the country. This is the only way Iraq could afford such an event. Only with the success and growth and increase in GDP can the dinar go up in value. This takes time.

Militia Man – Dinar Guru  The Central Bank put out strict measures…now they’ve put out a 4th package.  That 4th package is to reduce the interfaces for people to be able to get the dollar.  Once they get rid of the dollar, what happens?  The parallel market is going to get even worse… because …supply and demand.  If you reduce the dollar, it’ll become so expensive that they’re not going to want to use it.  There will come a time where because they can’t get it they’ll be forced to use their own dinar.  That’s what this package is dealing with.

Pimpy – Dinar Guru   For 20 years Iraq has passed and was able to implement a budget even with the bad exchange rate… But people out there say, ‘It’s impossible, this budget won’t be able to make it without a higher exchange rate.‘  That’s not true.  Who said they can’t make it without a higher exchange rate? …the exchange rate does affect the budget but…they already know the value of their currency.  The entire budget is based on that value…I’m not saying you guys [Iraqis] couldn’t appreciate a much higher exchange rate.  I know we would love for you guys to get one…but…those individuals out there swearing up and down Iraq is not going to be able to make it without a higher exchange rate for these budgets, that’s just a false claim…

Militia Man – Dinar Guru  Article:  “Development Fund.. a step for economic advancement and investment revival”  This article is packed with data! They are talking about the “nucleus” of the projects that will get Iraq into the real world of infrastructure build out, to get the development project off the ground and into to the private sector…It is all about show time…The costs associated with building networks of industrial cities, infrastructure, etc.. It is going to be massive and effectively far more cheaper once they adjust their currency to reflect a real effective exchange rate.. Amazingly cheaper IMO…

Mountain Goat – Dinar Guru   the BIG, BIG news…I quote- “the technical advisor to the Prime Minister, Muhammad Sahib al-Darraji, confirmed that Iraq did not actually come out from under Chapter Seven, indicating that the Federal Bank controls the dollar.”  Actually “officially”…Iraq has been “fully” released out of Chapter VII. So why does this advisor say otherwise?  …the US won’t let Iraq get out their control of the billions of dollars of oil revenues flowing through the NY Chase Bank. That is really the issue...So, what situation does this put us in for getting the RV?   [Post 1 of 2….stay tuned]

Mountain Goat – Dinar Guru  Common sense dictates that the US will have to let go eventually and allow the full impact on Iraq of getting out of Chapter VII and freeing up their oil $$ under their control once again. The mere fact that we are seeing an article like this one tells us the pressure is building to let go. This may take some actions from the UN to force the US to let go. They will also have to let go of OFAC sanctions on the dinar, which are still be imposed on it.  If the constitution is fully implemented and the Pillars of Financial Reform are completed, we may see the RV and the Reinstatement.  [post 2 of 2]

Militia Man – Dinar Guru   They are going to need the exchange rate change to value the oil and gas law so they can distribute the wealth to the citizens.

Paulette – Dinar Guru  Community Comment:   “At 1310 they could roll it [the budget] out but would run out of money due to high cost of materials needed to be brought into country without a new rate, a new rate will allow them to buy more materials …1310 will bankrupt them internationally”  I am not sure why they would run out of IQD to bring materials into the country.  I thought that they have to pay for all imports with USD,  The IQD is sanctioned and not able to be used to pay for imports.  Isn’t this the whole reason for Currency Sales of 200 million plus daily in order to pay imports?

Breitling – Dinar Guru  There’s an email being blasted out about Warka [Bank in Iraq] selling stock in Warka, where you can buy shares and own a share of Warka.  I have not been able to confirm that and I know people who work at Warka so that’s not a good sign.  Even if they did offer that I sure as hell wouldn’t get into that…It’s backed by the CBI but it’s also sanctioned by the CBI.  Until they open everybody’s account I’m not doing anything with Warka.  I’m not afraid of losing my dinar or anything like that and if something like that did come up we have a lock tight mother scratching lawsuit that we will win and they will suffer.  I’m not worried about that.