Dinar Observer Daily

Kaperoni – Dinar Guru   I remind people again Iraq’s entire net worth including all minerals in the ground including oil is only worth about $16 trillion dollars. With over 100 trillion dinar in circulation Iraq could never RV the dinar!  Only with the success and growth of Iraq’s economy and private-sector can the dinar go up in value. It could go up gradually over time as Iraq’s GDP increases.

Sandy Ingram – Dinar Guru  The CBI must carefully manage the timing of revaluation…[Iraq] has over $100 billion in foreign currency reserves.  The IMF has continually said Iraq needs more income streams to offset the oil industry.  The Development Road Project and several other manufacturing projects are all a part of increasing Iraq’s income streams.

Pimpy – Dinar Guru  I already said this about the World Trade Organization – There is no certain exchange rate that you must have to get into the World Trade Organization.  What they’re looking for is an exchange rate that’s very stable.  Although…IMO I’m pretty sure they would prefer it if you didn’t have so many zeros.

Clare – Dinar Guru  Article:  “The Governor of the Central Bank of Iraq receives a delegation from the World Bank”  Separate article quote: “The World Bank confirmed on Wednesday that the infrastructure for electronic payment systems in Iraq is the best in the region.“

Pimpy – Dinar Guru  Re: Nader question: “People are going to lose money if they change the 25000 for 25…If…I get 25 dinars that means I’m gonna go to the bank, if it go 3 to 1 that mean I’m gonna have only $75?”  I told everybody that is  a possibility.  Doesn’t mean it’s gonna happen but I’m saying this is what people should at least be prepared for…There’s a possibility they delete the zeros and then change the exchange rate.

Clare – Dinar Guru  Article: “The US Treasury includes an Iraqi bank on the sanctions list”  Quote:  “On Monday, the US Treasury Department included the Iraqi Al-Huda Bank on the sanctions list, as a source of major concern regarding money laundering because it “acts as a channel for financing terrorism by Iran.”

Samson – Dinar Guru  Article: “Senior US Treasury official travels to Iraq to counter illicit finance“

Fnu Lnu – Dinar Guru  They do not have a massive amount of Dinar with which to deal. Small incremental increases of value over time will guarantee failure and all the many billions of dollars spent, and man-hours wasted will for naught. It is more likely they will come out high on the exchange rate and let it fall until it finds equilibrium instead of creeping upwards in 2% measures every 90 days over decades.  Meanwhile everyone loses faith in the GOI, riots, and starves to death. Small increments over time makes absolutely no sense and is illogical.

Militia Man – Dinar Guru   1310 is not a Real Effective Exchange Rate.  I don’t think the largest accounting firms in the world would be dealing with this, at this time, which they’ve never done before, we’ve never seen ever the Central Bank of Iraq talk about…the 13 [big accounting firms]…They have now.

Pimpy – Dinar Guru  Changing the exchange rate has a huge impact on inflation, imports and exports.  I think Iraq can easily go up in increments.  This will allow them to really monitor the inflation.  This will also increase the quality of life for the Iraqi people.

Mountain Goat – Dinar Guru   Article:  “NATO CONFIRMED TODAY, TUESDAY, THAT IRAQ IS A REGIONAL LEADER IN THE REGION AND IS TODAY MORE SECURE AND STABLE”  Quote:  “…the NATO mission is an advisory mission, not a combat mission, and that Iraq is a regional leader in the region, and is safer today and stability.”   This was nice to hear that they believe Iraq is SAFER and STABLE. This is what we need.

Pimpy – Dinar Guru   People are getting confused…When they delete the zeros, they’ll change the currency.  It’s not the exchange rate.  That’s where the confusion is…If I have a 25000 dinar and I delete the zeros, now I have a new currency that comes out…They have the same value.   The nominal value is a number…25000…the new one says 25, but the exchange rate between these two currencies stays the same – 1 to 1.   What they’re saying is the 25000 dinar has an equal value of the 25 dinar.  That goes on for a little time until people trade in all the notes.  They’re not talking about against other currencies.

Nader – Dinar Guru  Algeria is big and has a lot of assets but they have a lot less than Iraq and their dinar is stronger than Iraqi dinars.  If you look a the Tunisian dinars, Tunisia has nothing…and their dinars are 3 to 1 – Three dinars to $1.  My point is these people has nothing.  They’re coming out a revolution.  They is a mess.  It’s completely a mess.  They lost a lot.  The private sector is a mess and it’s [their dinar] is still strong.  Iraq, this rate is still a punishment rate…They have to revalue.  If they revalue they’re going to revalue 1 to 1.

BGG ~ Apparently, someone doesn’t understand simple “supply & demand” economics. They don’t have to do anything. What they do or don’t do will have to do with their own desire and economic policies.

Samson – Dinar Guru  Article:  “With a growth rate of 150%… taxes announce an increase in their revenues to more than 4 trillion”   Quote: “Baghdad The General Tax Authority announced, on Thursday, that its revenues had risen to 4 trillion and 500 million dinars within 8 months…”

Militia Man – Dinar Guru  An investment budget it’s not going to work at 1310.   They don’t have enough dinar to do that…The project is to delete the zeros off the exchange rate.  Once they have done that, they’ve applied the Real Effective Exchange Rate they’re going to have to do things differently.  The world knows that.  WTO…Bank of International Settlements … IMF…US Treasury…US Fed – everybody seems to be the ones that are knowing it but they just haven’t quite done it yet or are they working to finish a process that is highly complex? That’s my opinion…

Pimpy – Dinar Guru   Iraq has a few more things they really have to fix.  Taxation [and] their tax system in general.  In addition to that they have to learn how to balance a budget…Balancing their budget, fixing their tax system would go a long ways in Iraq…

Mountain Goat – Dinar Guru   …the hot topic in the CBI, as my contact told me…is that the CBI is working towards getting the parallel black market rate in check with the “official” CBI rate of the dinar. I asked my contact why the past plan to end this crisis has not yet ended it? I was told it is taking more than expected for the measures underway to take hold, but that they will eventually end the crisis and the rate will come down…  [post 1 of 2]

Mountain Goat – Dinar Guru  I then asked about the “basket of currencies” we been hearing about to re-peg the dinar. I was told this is coming but they can’t peg the current in-country rate until they resolve the parallel market crisis and move to FOREX. This is exactly what I wanted and needed to hear. This falls directly in-line with the 2011 Dr. Shabibi plan I have talked so much about already. So all is very good in my eyes as far as this process goes.   [post 2 of 2]

Clare – Dinar Guru  Article:  “Sudanese Advisor: The dollar is declining, prices are stabilizing, and expectations are optimistic” [Note:  We want to see the dollar declining in Iraq.  This is good for the dinar.]

Militia Man – Dinar Guru   They said only one currency by the first of this next year and they also said that the taxation will be on the dinar, customs and borders this year.  They’ll have to educate those citizens effectively though – in the next 10 days.  We’re going to watch and see how it rolls.

Pimpy – Dinar Guru  With them taking away the US dollar there’s some logic to…an increase in Iraqi dinar.  Will they?  You’re not going to see them go 1 for 1…  Nothing would make me happier than to be wrong about this.  I would love to go, ‘Oh, my gosh, everybody was right and I was wrong. Darn.‘  As I take my dinar down to the bank…It’s not that simple.  There are a lot of hurdles and…precautions countries have to take before you do anything that outrageous with your exchange rate.  The best you can hope for is it goes up in increments…You’re not going to see any huge significant change in the Iraqi exchange rate despite the fact they’re taking away the US dollar.

Dinar Investor – Jeff  The elections are the linchpin to all their remaining economic steps and movements including the rate change…These elections were a reform step, which is exactly what the rate change has been waiting on throughout this entire year.

Militia Man – Dinar Guru  Since November of last year they have been working to do what?  Get rid of the parallel market.  And how are they doing that?  They’re populating banks with many other currencies.  They’re doing all those things that are necessary to do what?  Be article VIII compliant, to have a single currency, not a dual currency country.  They’re getting rid of multi-currency practices.

RVAlready – Dinar Guru  …if Iraq wants to pay out the 2023 budget between now and Jan 1, they need to RV their currency.

BGG ~ So wait a sec… what’s so different about this budget (and this short period of time – leading up to Jan 1st) and every other budget year in Iraq since, like, 2006 or so?? Really??

Mountain Goat – Dinar Guru  … We can clearly see that Iraq is moving to the normalization of how to do business with other countries and moving out of the sanctioned way of doing business with the world. They are already doing INTERNATIONAL. It is happening right now…Folks, I can not emphasize enough just how good all this news is today. WOW, WOW WOW!

Pimpy – Dinar Guru    Article:  “Launch of the third annual scientific conference on economic challenges and reform in Iraq”  This part is very interesting to me.  Quote:  “Restructuring the general budget”  Why would they have to restructure the general budget unless there’s about to be some changes made.    I don’t want to get all crazy and make assumptions that it has something to do with the change in the exchange rate but I find this very interesting.  Like I said, if they’re going to ever change the exchange rate they usually do it at the end of the year or the beginning of the year so everybody could do what?  Restructure their budgets for the year...I do find this interesting…my ears are perking…what do you got going on over there Iraq?

Militia Man – Dinar Guru  People need to know what they own.  I feel what we’re presenting to everybody is the ability to have a better understanding and know what you own…It’s going to be really important because you’re going to know the consequences…This is a complex event.  It’s going to be a complex event.  They’ve proven it to us that there’s so much more than just flipping the switch.  You can’t just think basic. You got to remember ...it’s not their job to tell you everything…Understand what you own.  The Iraqi dinar should not be taken lightly.

Dinar Investor – Jeff  The elections are the lynch-pin to the rate change.  That’s what we’ve waited on this entire year to even get to the point of being eligible to change the rate…Remember, it was the central bank’s absolute minimum requirement to have and hold these elections.  Or really to remove corruption.  The most effective fastest way to remove corruption is through elections and that’s what you’re witnessing…

Kaperoni – Dinar Guru   A country’s exchange rate is the result of the success and growth of their own economy. When you have a weak economy, you have a weak exchange rate. Until Iraq passes laws, diversifies their economy and increases their GDP, nothing will happen with the dinar.  When Iraq passed their tripartite  3 year budget a few months back, it created the conditions for them to diversify and privatize their economy over the next three years.  Now Iraq is on the clock to accomplish such.

Pimpy – Dinar Guru  What the IMF is saying is really good.  But, no, the exchange rate isn’t going change tomorrow.  It’s just another step in the right direction for Iraq…