Militia Man – Dinar Guru  The Minister of Transport announced the completion of the port is 60%…At 1310 how many dinars is it going to cost to rebuild a port?  How’s that going to work?  It didn’t.  It’s not finished… Remember this 2023-24-25 budget is retroactive to the 1st of this year…If they change the exchange rate…if they got to 1 to 1 that’s 1300% cheaper.  What if they come back to the previous era…around $2.80 to $3.22…that’s 2600% cheaper… amazing how much cheaper that port’s going to be to build.  Same with all these construction projects…The country is going to have to import those materials.

Kaperoni – Dinar Guru   We’ve been saying for a long time nothing was ever going to happen with the dinar until Iraq diversified their economy.   We’re reading about it today that this is their focus.

Pimpy – Dinar Guru   All currencies have some type of backing …what supports the IQD is the oil industry.  But there are other things out there like the amount of gold they buy, the amount of foreign currency assets they build up, all these things support the IQD.   But when you say something is asset-backed that means this particular commodity solely and purposely supports the currency and Iraq doesn’t have any assets or any commodities that solely are developed for the sole purpose of supporting the IQD.

Mountain Goat – Dinar Guru  Article:  “IRAQ AND GERMANY SIGN A STRATEGIC COOPERATION AGREEMENT IN THE FIELD OF COMMUNICATIONS AND POSTAL SERVICES”  Does Iraq need this to RV? NO! But it certainly shows us once again just where this country of Iraq is slowly progressing more and more “open to the rest of the world”.

Paulette – Dinar Guru   Question:  “The latest article…suggests that the HCL will be passed in the next legislative term.  When is that term?”  The legislative term starts on the 13th but currently the Oil and Gas Law is not on the agenda.  When it is, expect a first reading, at least 3 days and probably two weeks before the second reading at which time a Third reading could be waived and the Law voted.  If third reading, expect another 3 days to two weeks after the second reading.

Militia Man – Dinar Guru   Halabousi was talking to the leaders of the country, the politicians etc, he says to run away before your arrest on corruption charges.  So the Speaker of the House of Representatives is telling the people, those of you that are corrupt, you better start running…There’s been 96 arrests…those arrests probably have some influence on why Halabousi has suggested these guys take off and start running.

Kaperoni – Dinar Guru  With the new securities law eventually passed Iraq can end their currency auctions.  They can begin to float the dinar and access to the principles of supply and demand.  And of course transition to the IMF article VIII which has been an issue for a long time…

Mountain Goat – Dinar Guru   …the CBI told me they were moving along and we should expect the rate in the US. But last Saturday I did finally get in contact with my CBI representative and I was told that the Oil and Gas law did impact the ability for the Central Bank to move ahead…the RV or Reinstatement has NOT occurred I can assure you with 1000% certainty. We still wait. Will the passing of the Oil and Gas law make any difference. To me it should since I also know it is a constitutional requirement and I was told a decade ago there will be no Reinstatement unless the Iraqi constitution is fully implemented and this law is such a critical law…

Pimpy – Dinar Guru  It’s looking very good for Iraq right now.  It’s sounds good, it looks good, but let’s see if they can actually implement the things they need to and they actually do what they promise they are going to do…A stronger economy helps build a stronger dinar…

BGG ~ Not long ago I made a fairly long post describing what I have come to understand over the last year or so…

To review: I explained how the biggest impacts on the value of the Iraqi Dinar would likely be…

1) Them using their own currency (exclusively), they are nearing this point now…

2) Them entering some “Brics type” alliance, as opposed to being so attached to the US (note this recent alliance with Qatar – more to follow?).

Take note of Iraq recently not buying US Treasuries. If we (Janet Yellen) won’t even buy our own treasuries, why should they?? We’re such a bad investment, we won’t even buy us.

Finally, note this recent article I put up:

“Parliamentary Finance explains the impact of approving the budget on the exchange rate during the coming period”.

While I highly doubt there is any direct change of the rate contained in the budget – the currency pressures created by the new methods in this budget may well force the currency higher over time.

So aside from all the recent nonsensical hype, the actual news for the future of Iraq is pretty decent.

Hang in there.

Read More: http://www.dinarupdates.com/blog

BGG ~ The point I was trying to convey, is to quit listening to all the “budget hype” and “group chant”… RV, RV, RV, RV.

This may well happen, but at this point, not for any reason that has been previously discussed. Not one.

This post wasn’t about false hope… it was about KNOCK OFF THE BULL$4!T.

Paulette – Dinar Guru  The full Oil and Gas Law is still in negotiations but the framework has been established in the budget and for the next three years…..  I no longer care when they pass the full Oil and Gas Law unless I see something concerning…

Militia Man – Dinar Guru  They’ve had problems with the parallel market which is an illegal market.  It’s the black market and they want that to cease to exist.  They want to be able to be on the dollar only for foreign exchange.  Internal, external, merchants, traders they want it to be in the dinar…their goal is to get price stability.  I believe they are going do that.  My view is changing the exchange rate to an Article VIII compliant currency accepted by the international world is going to make all the difference to the parallel market…

Clare – Dinar Guru   Article:  “Al-Nusairi: Iraq’s accession to the World Trade Organization contributes to the development of the financial and banking system”  Quote:  “Al-Nusairi said that one of the most important returns and benefits achieved by the financial and banking system in Iraq from Iraq’s accession as a full member of the World Trade Organization…”  Question:  …did they just say they are a full member of the WTO?  Clare:  IMO YES…THAT’S WHAT HE MEANS!  “from Iraq’s accession as a full member”

Mountain Goat – Dinar Guru   Article:  “Iraq: Accession to the World Trade Organization (WTO)”  Quote:   “Iraq’s accession as a full member of the World Trade Organization is regularity in the global financial system in accordance with the criteria for liberalizing financial services”. Then yet more of the same good news and I quote –“access to foreign transfers in foreign currency to the real beneficiary, and compliance with the standards of the global financial system”.  Yes, Iraq is now a full member.

Sandy Ingram – Dinar Guru   Iraq made financial headlines when it boosted gold reserves by 2% in one day.  To understand why this is major news, let’s compare it to the fastest-growing currency against the US dollar, the Swiss frank.  The rapid rise of the Swiss franc, happened in 2015.  One single event is responsible for the Swiss franc blowing up.  The Swiss National Bank suddenly withdrew the peg of 1.20 franks per euro on January 15, 20215.  The central bank stated this was requested since the peg was no longer viable.  In the immediate aftermath…the currency surged 30% against the euro and 25% against the US dollar.  The decision shook the Forex market and put several foreign currency dealers out of business...  [Post 1 of 2]

Sandy Ingram – Dinar Guru  This is how your finances can change in one day…Here are two reason why the Swiss currency is so strong…Switzerland has a long history of low debt and fiscal responsibility.  And the nation has hard assets such as gold reserves…What is the bottom line?  Low debt and high gold reserves.   According to Statista, Iraq has extremely high debt, the national debt is estimated at $210 billion US dollars by 2028.  This is why Iraq booting its gold reserves by 2% in one day is breaking news and good news for Iraq…Once Iraq finds a path to reduce debt and increase revenue outside of the oil industry, its currency will increase in value.  [Post 2 of 2]

Pimpy – Dinar Guru  When you learn about what strengthens a currency – Iraq doesn’t have it.  They don’t have it at all.  The fact that 95% of their entire budget is reliant on oil tells you right there alone the currency cannot be stable enough to increase in value.  There needs to be more money generated inside Iraq through the private sector/public sector.  It just can’t all be oil…

Militia Man – Dinar Guru   The budget is an investment budget and they have not exposed it yet.  They’ve voted on it on the 12th last month, 21st went into the gazette and they still have not opened it...Vital project of getting their money and disbursements is what we’re waiting for.  What we’re hoping and expecting to see is a change in the exchange rate will be applied to their budget which we believe there’s a clause in the budget that allows for adjustments to the budget whenever necessary…

Mountain Goat – Dinar Guru  I am attempting to stay in close contact with the CBI during this revaluation process. …we still have not see any real news from the CBI (Ali Al-Alaq) itself on the project to delete the zeros. This project is pivotal in the revaluation and then the reinstatement…so why is the CBI staying so quite if they plan to reinstate the dinar anytime soon… I can’t figure out why the reinstatement has not already occurred. All the outward signs are way too obvious now. Is there still something to do? Since my contact in the CBI assured me the “green light” has been given a week ago why are we still sitting here? …My only guess is that maybe the CBI wants to revalue one more time…closer to 1000?

Pimpy – Dinar Guru  I agree it would be nice if they had a stronger currency.  I think it’d be more helpful.  They just don’t have the right things in place in order for them to jump up to a high exchange rate.  That’s why I said you’re going to see them doing it in increments.  It’s impossible for them to jump right into $3.22…All it takes is one small thing to happen within the oil market and it would totally collapse the entire economy. 

Kaperoni – Dinar Guru  We expect the dinar to rise gradually as a result of the success and growth of their economy as a result of the private sector investment and the increase in their own GDP Iraq would make the dinar the main currency in Iraq which they’re beginning to do.  They need to continue this transition to the digital dinar…

Clare – Dinar Guru  “Exchange companies are preparing for a major demonstration tomorrow, Monday ”  Quote: “The owners of exchange companies announced that they will stage a demonstration on the third of July in front of the Central Bank gate on Al-Rasheed Street, to demand a change in the bank’s policy, which they described as wrong.“

Militia Man – Dinar Guru   There’s some squabbling going on who’s going to control the Iraq exchange rate that’s been going on in the parallel market…they have to change some things because it hasn’t been quite working …What would cure the parallel market is obvious to everybody.  It’s an exchange rate change.  Something significantly stronger than the dollar would clear it up…They’ve said yesterday the situation has become more urgent to adopt new approaches that focus on blocking illegal channels and providing the facilities and flexibility required for legitimate currency trading markets.

Yada – Dinar Guru  Fear not! This currency will change because the demands of the budget will require it.   It will not and can not operate successfully at 1300-1.

BGG ~ You mean like it has for the last 20 years? It cannot operate like that?

Pimpy – Dinar Guru   Article:  “Top 10 weakest Currencies in The World In 2023”  As you go down the list Iran [#1] is one of them, which is not surprising.  They’re going through sanctions.  Vietnam dong is the other one [#2]…Quote:  “The currency is highly devalued currently but the chances are high for the currency improving considering the improvement in the economy.”  Did you see that?  This is coming from Forbes.  May 5, 2023…Iraqi dinar is 10th on the list…As you get their ducks in a row you’re going to start to see the value of their currency increase…

Militia Man – Dinar Guru   They’re saying Iraq ranks ninth in the world, that their raw wealth exceeds $15 trillion.  That’s massive…And they have a currency exchange rate at 1310? …the Real Effective Exchange Rate is not 1310…this is the first time I ever recall Salih or anybody else come out and say Iraq’s value [$15 Trillion].  What they’re doing to me in my view is they’re supporting they’re going to make a move and they’re giving justification why they can support a Real Effective Exchange Rate.

Kaperoni – Dinar Guru  The Securities law will soon be before the House of Representative.  This is something we’ve been talking about for a couple of years…I thought that was great because if they’re going to activate the Iraq Stock Exchange for international transactions it’s a big deal...this opens the door for so many things that are directly related to the dinar.

Clare – Dinar Guru  Article: “Advisor to the Prime Minister: The market value of Iraq’s raw wealth exceeds $15 trillion”  Quote:  “Iraq is one of the most important countries in the world, if not at the forefront of nations rich in natural resources or raw materials within the scope of the international classification of resources on the globe,“

Mountain Goat – Dinar Guru  article from Dec 15, 2021:  “MUDHHER SALIH, OUTLINED THE IMPORTANCE OF THE WHITE PAPER AND ITS REFLECTION ON THE ECONOMIC REALITY”  I will remind you once again it’s the White Paper that is going to get us to the reinstatement … I also point out the clause that says they intend to move back to FOREX or a FOREX like global trading platform for the currency. Folks if you have been following the news since January you can clearly see the parallels from what is happening on the ground to this plan…it is moving ahead.

Pimpy – Dinar Guru  Question:  “Is Iraq and the CBI collecting 3-zero notes?”  No they’re not collecting them right now.  If they were there’d be a redenomination...trust me we don’t want to go that route if we can avoid it.  I prefer the exchange rate happen in increments and they slowly remove the higher denomination.  This way we benefit from a higher exchange rate.