Dinar Observer Daily

Pimpy – Dinar Guru  Article:  “What is the secret of the decline in the Iraqi dinar despite the increase in dollar reserves?”  Having large amounts of reserves in gold strengthens your currency…why is the dinar losing value to the U.S. dollar?  Quote:  “…the currency lost about 10% of its value.  This decline is not huge but it’s starting to worry Iraqis about the price of imported goods…“

Sandy Ingram – Dinar Guru   International news feeds light up with details on the Iraqi PM statement on US troops.  Article:  “Iraqi PM backs indefinite US troop presence in country”  Quote:  “Iraq would like similar relations with Washington to those enjoyed by Saudi Arabia and other Persian Gulf oil and gas producers says Iraqi Prime Minister Mohammed al-Sudani“

BGG – Article:  “Al-Fateh: Selling oil in currencies other than the US dollar is very possible”  I have said this and said it and said it… This is not an unrealistic set of events. EVERYONE wants off the US Dollar. The question is, what will they get on? What if it were Dinar?!? WOW.

Pimpy – Dinar Guru   Although this [past] article makes a great case why the rate is gong to be reinstated at $3.22…there’s nothing out there that guarantees the rate at $3.22.  I say that hesitantly because in an article they tell you why the rate is going to be reinstated at $3.22 and they’re using quotes from individuals who are part of the United Nations and the whole nine yards…there’s places within the article which I’m going to have to elaborate a little more so people are not misled…I realize you guys..are grown adults…I’m going to elaborate more and point out why there’s some concerns about something being said in there…

Breitling – Dinar Guru   Iraq is still cranking.  The powers that be in Iraq, the people with the authority, I haven’t heard one of them say, ‘This isn’t going to work.  We aren’t going to add value to our currency.  Maybe in 30 years.‘  Nothing.  They’re still on it.  They’re still very very enthusiastic about it.  They need to weaponize their own currency is the language that they’re using.  So that’s all good.

Kaperoni – Dinar Guru   What law needs to be passed now?  It’s not what law,  it’s laws. They’re over 100 outstanding laws in Iraq that need to be passed to encourage investment in Iraq. Nothing is happening with the dinar until Iraq develops a private sector economy!

Pimpy – Dinar Guru   If you want to have a stronger exchange rate for your currency you need a very stable government.  You need a stable currency.  You need a stable economy and having 94% of your budget relying on oil revenues is not a stable economy.  Al-Kazemi went in there and changed it.  It used to be like 98% relied on oil revenues and now it’s down to 96%.  It doesn’t sound like much but that does make a difference.  I like to see how far Al-Sudani is going to get.  I’m sure he’s doing anything and everything he can to make as much of an impression to the people of Iraq so when they go to early elections they’ll consider him all over again…

Clare – Dinar Guru  Article:  “An expected visit of an Iraqi delegation to Washington, and the “Dinar and Dollar” file is at the forefront of the talks”  Quote: “a high-ranking Iraqi delegation to visit the United States on the eighth of next February…The delegation, which includes economic officials and from the Central Bank, will hold meetings with senior US officials in Washington to discuss the issue of the dinar and the dollar, and the economic relations between the two countries,”

Pimpy – Dinar Guru  I was watching this video on the black markets over there in Iraq…They were highlighting a female…She takes hundreds of U.S. dollars and buys Iraqi dinars.  She’s buying them on the black market for something ridiculous like 2,500 dinars for every dollar…the official exchange rate is 1,450 dinars for every dollar but she’s getting 2,500 or more…She takes the dinars, brings them back to an individual who then resells them here in the United States for a premium…they’re making money hand over fist.  These are small time people working in the black market.  You can imagine somebody on a much larger scale.

Pimpy – Dinar Guru  Article:  “Government movement to complete the requirements for Iraq’s accession to the World Trade Organization”  This is a biggie…this is going to affect their currency in a positive way because now they are going to be a much bigger player on the International scene.  This also allows them certain privileges especially ones that affect their exchange rate…looks like they’re getting ready to finalize, at least this next stage they want to complete by this year.  The future for Iraq is looking really good.  It really is.

Paulette – Dinar Guru  Let’s hope that Sudani’s GOI doesn’t pass this budget prior to the currency being “reinstituted”.  If they do, there are still many windows of opportunity for the CBI to take action...If it gets all the way back to the Finance Minister and disbursements are made at 1450, this year certainly gets a little muddled as the budget is retroactive to January 1.

Mountain Goat – Dinar Guru  Article:  “THE CENTRAL BANK SETS A DATE FOR THE RETURN OF THE DOLLAR EXCHANGE TO “ NORMAL ”  No! This 1470 is not normal. They have been on this program rate for so long now it has become the “normal”. It was supposed to be termporary and maybe for 5 years but here we are almost 2 decades later. Its time to execute the 2011 plan to reinstate it to the proper normal rate on FOREX…

Henig – Dinar Guru  Article:  “Including Iraq..Three countries will record the highest economic growth in 2023”   Quote:  “Despite the decline in the economic growth of the Arab countries, the bank stated that “Egypt, the UAE and Iraq have the highest economic growth rate among the other Arab countries during the year 2023, as their growth is expected to exceed 4%, while the growth rate of the rest of the Arab countries will decrease to less than 4%.“

Pimpy – Dinar Guru   Article:  “Dollar prices fall in Baghdad and Erbil”  This is the direction you want it to go into.  When you hear the dollar is falling against the dinar that’s what you want to hear.   Quote: “…Baghdad recorded this morning 1572 dinars for every one dollar..”  It was up to 1600.  Now it’s not much of a change but at least it’s going in the right direction…the fact that the dollar is losing a little bit of ground is not surprising.  It goes up and down like that so don’t get too excited.  I mean be happy about it but like everything else we’re looking for consistency…

Mountain Goat – Dinar Guru  Article:  “HOW IRAQ IS PAID FOR ITS OIL AND WHERE THE MONEY GOES…HOW THE PROCESS GOES”  …the daily transactions of dinar to dollars should be just enough to pay for imports needed for the economy of Iraq. The CBI knows what this amount is. We have  been told it is about $20-30 million a day and so getting it down to this amount from $200 tells us lots of the past stolen money is no longer funneling out of Iraq. This is due mainly from the new currency auction platform recently put in place.

Paulette – Dinar Guru Watch for when the GOI is going to pass the budget.  I hope it is not until after the CBI…”Reinstitutes” their currency which must occur prior or simultaneous to the RI.  I believe it will be prior with the RI to follow from 2 weeks to upwards of a year.  I don’t think a year is likely but Shabbibi said that inflation has to be monitored prior to moving ahead.  I am hopeful that the CBI is currently doing that in their reported experiment in depegging from the USD.

Henig – Dinar Guru  Article: “Iraq among most prominent countries to buy gold in 2022”  Quote: “Gold reserves in Iraq represent 8.7 percent of its total international reserves…Regarding the largest Arab countries owning gold, Saudi Arabia continued to lead the list as it possesses 323.1 tons, followed by Lebanon with 286.8 tons, followed by Algeria with 173.6 tons, then Iraq with 130.3 tons, and then Egypt with 125.5 tons.”

RVAlready – Dinar Guru  Article:  “Parliament publishes the agenda for next Saturday’s session”  We must remember there is no requirement for the budget to RV. The CBI could launch the RV tomorrow morning.

Mountain Goat – Dinar Guru  “THE SUDANESE GOVERNMENT OBLIGES ALL OF ITS INSTITUTIONS TO DEAL IN THE IRAQI DINAR”  It’s definitely a move in the right direction but still they need to create a demand for the dinar from outside of Iraq thus eliminate the need to exchange the dinar for dollars to spend on obligations and purchases outside of Iraq…The pieces are all in place and so when will they pull the trigger?

Paulette – Dinar Guru  Parliament having their first session is irrelevant IMO.  They cannot work on passing the budget until they receive it.  Sudani’s GOI has not passed it yet.  All laws, including the budget, have to pass the GOI prior to Parliament receiving them.  It is only then that Parliament can commence the First Reading.  Thereafter, it goes to the relevant Committee to discuss, review and then return to Parliament with their analysis and comments.  The Second and Third Readings can then commence. If passed, it can then be sent to the President for signature.  After which, it then goes to the Finance Minister for disbursement which often takes upwards of 30 days.

Nader – Dinar Guru   I think it’s going to be on Forex...and that day you’ll be International I think they’re going to come out with a new currency.  But for now they’re not saying anything.  They’re talking about it but they’re not showing any improvements.

Clare – Dinar Guru  Article:  “Government movement to complete the requirements for Iraq’s accession to the World Trade Organization”  Quote:  “The ministry’s plan during the current year includes completing technical accession files in terms of goods, services and intellectual property, in addition to harmonizing legislation and laws with the agreements of the multilateral organization“

Henig – Dinar Guru  Question:  “I thought the Parliments legislative term started on the 9th?” There’s been a LOT of misinformation back and forth…Lots of conflicting info, lots of stuff that just doesn’t make sense, but when you step back and think it through, you’ll see that it’s all intentional.

Mountain Goat – Dinar Guru  Finally, we hear overtones and direct convictions of some of the real problems with the dinar and the currency policy in Iraq now in place. …We all need to settle down and relax. The reinstatement is coming and I certainly hope they can pull it off in this January 2023…

Clare – Dinar Guru  Article:  “Al-Janabi: The Central Bank is able to restore confidence in the Iraqi dinar soon”  Quote: “this problem, which confused the state of the Iraqi market, will soon be resolved, and the central bank is able to restore confidence in the value of the Iraqi dinar and adjust technical matters in the near future,“

Pimpy – Dinar Guru   The last two months have been very rocky for the IQD only because of all the speculation out there.  There’s a lot of people that want to keep the Iraqi dinar unstable and they did a pretty good job of rocking the boat.  I think people are starting to wake up to this trick or maybe not.  We’re going to find that out the beginning of this next year…the budget…hopefully approved by February should calm a lot of people’s nerves and from there we should see some positive movement with the IQD…

Kaperoni – Dinar Guru  Iraq is beginning to create the conditions to launch a float of the Iraqi dinar. Large Central Bank Reserves, creating a private sector economy, all are conditions and requirements for the success of floating…one [article] specifically talked about the central bank’s reserves and how they won’t be needed at such a high amount a year or so from now.

Paulette – Dinar Guru  Many try to compare Vietnam and Iraq when evaluating the currency.  Most of these comparisons are flawed: “…Vietnam has a very low rate and their economy is one of the fastest growing…”  This is a totally irrelevant comparison.  The rate is not the issue.  The issue is IMF Article 8 Compliance.  This allows Freedom of Movement of capital in and out of the country.  [Post 1 of 2]

Paulette – Dinar Guru  Vietnam has been officially acknowledged to be Article 8 compliant, Iraq has not.  Additionally, the CBI has clearly stated their intent to implement the “Delete the Zeros” project.  Vietnam has not made any such claims.  Bottom line, comparing Iraq and Vietnam due to their low currency value is like comparing Apples to Oranges… [Post 2 of 2]

Kaperoni – Dinar Guru  Launching a float is not a simple event it’s based on the economic growth and laws that are in place…