Dinar Observer Daily

Militia Man – Dinar Guru   Question:  Does a contract rate make sense when it is time to exchange …or do you think its just going to be an international rate?  Militia Man:  I have heard lots of different things on that…personally I think we are going to see one exchange rate that’s going to be managed by the CBI and central banks in the region...

Pimpy – Dinar Guru  People keep saying Iraq can’t do this total rebuilding without changing the exchange rate.  I was thinking the same thing too.  And it was with good reason.  They could really benefit from that but the more research you do into a currency exchange rate and the things that are necessary that support it the more you realize Iraq is severely lacking in almost everything.  The only thing they have is oil behind it.  I know there’s people out there telling you oil should be good enough.  No it’s not.

Paulette – Dinar Guru   The issue is freedom of movement of capital.  That is what will open Iraq to the world.  Go Article VIII announcement  Go RI.  This is at the discretion of the IMF.  In the meantime, I hope Iraq restructures their currency very soon.  This is a CBI function and at their discretion.

Kaperoni – Dinar Guru    Community comment “Iraq should have a tradable currency before they join the WTO.”  They already do!  The dinar is globally tradable. The problem is no banks want to deal with it until Iraq’s central bank is in compliance with other world Banks under IMF Article VIII.

Mountain Goat – Dinar Guru   Parliament is now on recess until after Eid holiday. When they come back the focus is said to be all about two issues. How to solve the budget deficit without borrowing money and to get the Oil and Gas law passed and implemented…Seems now there is a new ignited will to get it done...I will be calling my contact in Iraq CBI and getting the full scoop, I hope, on why we have not seen the reinstatement and project to delete the zeros as they told me it would occur this week sometime. I will be asking if it is the Oil and Gas law holding it up or what? But something is holding it up, obviously.  

Pimpy – Dinar Guru  The WTO isn’t going to let them in unless they change their exchange rate.  That’s false…They have many members in there with even worse currencies than the Iraqi dinar…Vietnam is one of the members and they’ve been in there since 1950…For every US dollar you get 23,540 Vietnam dong.  To say they have to increase your exchange rate in order to be a member of the WTO is false. 

Clare – Dinar Guru  “After the end of its recess, the House of Representatives is preparing to pass 3 prominent laws”  Quote:  “Parliamentary committees intend, after the end of the legislative recess, to pass the Communications Law, the Investment Law, and the National Security Law, all of which serve the citizens.“

Militia Man – Dinar Guru  Member Question:  So whats the major hold up? Or is it just the process playing out?  Militia Man:    I think it’s just the process playing out. This is one of the biggest things I have ever seen in my lifetime…all coming together. All the electronic platforms…the new Iso2022 system…the new ATFX ready to go for forex currency trading and pairing…  Its now 2023 and Iraq has a 3 year budget for the first time ever…Ali Alaq came back from the AMF (Arab Monetary Fund?) to get this RV off the ground because the guy before him didn’t get it done. This is all coming to an end. There is no hold up- just the process coming to an end. …Everyone seems happy and we will be on pins and needles…hopefully between now and the third they will showcase this country. 

Mountain Goat – Dinar Guru  The saga about the Iraqi dinar RV only gets better and better.  Yes, we are VERY close to something big happening with the dinar…Yes, I do have some concerns about not seeing any news about the project to delete the zeros…but the CBI told me from their experience in the past they are not going to advertise the process at the end anymore until they are absolutely sure and are implementing it. Integral to the RV is this project to delete the zeros…Are the newer notes already printed? Yes, they are printed and in the vaults at the CBI…they are not yet in the ATMs and so we wait. One cannot happen without the other.

Pimpy – Dinar Guru  There are a lot of exciting things going on, things I was hoping would start to happen once the budget was passed.  We could see the wheels are rolling and things are starting to fall into place.  We have large groups of people looking for outside investors.  A report came out recently that said Iraq is stable, the government appears stable, the economy is starting to become stable.  If this is the case you can definitely see a bunch of outside investors coming in pretty quickly and that’s what we’re hoping for…

Clare – Dinar Guru Question about signed Budged:  “Does this mean we now move forward to posting in the Gazette?“ IT IS LAW NOW THAT THE PRES. HAS SIGNED IT.  THEY WILL GET IT IN THE GAZETTE. THAT IS JUST A FORMALITY.

Militia Man – Dinar Guru  The government and private banks – What they’re trying to do is establish what they’re call a qualitative shift in the Iraqi economy and enhance the stability…In revaluing a country’s currency you need security and you need stability…Their whole goal here is to tell you bits and pieces…but it’s not their job to tell you the date.  It’s not their job to tell you specifically the rate.  However they give you an indicator…10 years ago they felt it was worth $1.13 from the Central Bank.  That’s just what they were saying/suggesting.  They’re not giving it because it’s not their job to do so.  But there is a job to maintain some education.

Pimpy – Dinar Guru  The president has signed the budget finally into law.  What does that mean for Iraq?  How does that benefit those who are hanging on to the Iraqi dinar?  …Finally it is set in stone.  Iraq has passed a 3 year budget.  Infrastructure is going to be big on here…There has been a ton of money set aside to start investing into Iraq…We should see unemployment numbers start to go down and more people contributing to the tax payment.  This is exciting for Iraq as long as the corruption people don’t start showing their true colors everything should be really good.  So congrats to Iraq.

Pimpy – Dinar Guru  Article: “Iraq Pays Its WTO Membership Amounts”  This is good news.  Iraq has finally paid their membership dues and they can continue to move forward doing what they need to do to ascend into membership with the World Trade Organization.

Paulette – Dinar Guru   The CBI has a lot to accomplish prior to Budget funds being disbursed.  Look at how busy Alak was this [past] weekend.  Hopefully, we see the implementation of the “Delete the Zeros Project” prior to the Budget becoming law and certainly hope before any funds are disbursed.  Simultaneously or shortly after the implementation of the “Delete the Zeros Project”, hopefully the IMF launches the Reinstatement of the IQD magnifying the purchasing power of the budget disbursements allowing for all those rebuilding projects to be funded….  If we are to see the RI this year, we have a huuuuuge window ahead...

Militia Man – Dinar Guru  They’re talking about establishing a city that’s a financial and business center in Iraq…Could you imagine one square square mile or a half a mile of high-rise buildings all for a financial district on the amount of money that’s going to cost?  The amount of materials it’s going to take to do that kind of endeavor?  They don’t have enough dinar at 1310 to ever do that.

Pimpy – Dinar Guru  About a year and a half ago Iraq mentioned they wanted to remove the 50,000 and 25,000 dinars out of circulation and use them specifically for bank transaction or large business transactions…What he’s not understanding is if they go to redenominate/remove zeros off them that doesn’t mean they won’t keep the large denominations to do business transactions…But if you’re carrying around 25,000 and 50,000 dinars as a civilian you’re going to have to trade those in or you might risk the chance of losing out…because it becomes obsolete.  [Post 1 of 2]

Pimpy – Dinar Guru  So will they continue to use the 50 and 25,000 dinars to do large bank transactions?  Of course that’s possible.  Will the dinar note look the same as we know today?  Heck no.  Those notes will no longer be any good.  He’s mixing two things up.  He’s talking about the banknotes where they delete the zeros or LOP off the zeros and the exchange rate… Wikipedia Quote:  “Redenomination itself is considered symbolic as it does not have any impact on a country’s exchange rate in relation to other currencies.  It may however have a psychological impact on the population...”  So it has nothing to do with the exchange rate.   [Post 2 of 2]

Militia Man – Dinar Guru  The 25k notes – if they change the value – that value goes with it because you can’t have 2 exchange rates with an international currency.  It’s not going to work.  Never has been even suggested…the project to delete the zeros is real.  It’s not off the currency it’s off the exchange rate…

BGG ~ This seems a fairly absolute statement with little (or no) documentation…

Far more likely – the “project” referred to as “the deleting of the zeros” refers to the raising of the value and thereby removing the larger notes (ie; the 3 zero notes) from circulation.

Further, there may well be a current set of conditions that won’t require them to do any such thing. For instance, money as a construct is changing before our very eyes.

If their currency becomes widely used, they can gain value without costing themselves a penny. This seems a far more likely scenario, considering current world events…

Clare – Dinar Guru  “urgent… The President of the Republic ratifies the budget law”  Quote:  “Today, Wednesday, the President of the Republic, Abdul Latif Rashid, ratified the Federal Public Financial Budget Law…approving the budget is a turning point for the government to implement its program, which includes securing the necessary needs of citizens, providing basic services such as health and education, rehabilitating the infrastructure and initiating vital and strategic projects that will positively reflect on the reality of the situation daily life of the citizens.”

Clare – Dinar Guru  Article:  “Al-Kalabi: The President of the Republic did not sign the budget in order to study it well, and he has “15” days”  Quote:  “he has a validity of 15 days, and if it is not approved this week, it will take place after 15 days, 7/1, the budget will be launched, God willing.”

Mountain Goat – Dinar Guru  I feel we have been in a critical period of the currency reform program since January of this year 2023. Now we are in a “vital” period since the three-year budget has been passed on Sunday June 11th. … I quote from today’s article – “The budget needs formal approval from the Presidency of the Republic within 15 days and after publication in the Official Fact Sheet to be effective”. Now we wait for the president of Iraq to ratify the budget. He has told us he is going to “take his time and review it carefully” …According to the Iraqi constitution he has 15 days from the date it was delivered to his desk (June 15) to ratify it, that brings deadline to
July 1.

Militia Man – Dinar Guru  To be an observer component of the WTO you have to be responsible.  You’re supposed to pay your fees and dues.  Iraq hasn’t been paying their dues since 2018.  Why would you pay your dues if you’re not having any short-term need to have ascension?  You don’t.  So they didn’t pay.  Guess what?  They paid it all up to date.  The World Trade
Organization has got their dues…Why would you do that?  Because you’re looking forward towards the ascension into the World Trade Organization …this isn’t something that tells me we’re going to be sitting here until 2024/2025…

Nader – Dinar Guru  If he (it, “the RV”) doesn’t go on July we’re not going until 2025.  I’m sorry to give you this bad news but if it’s fixed it’s fixed.  They are going to try to work on the economy, on the private sector and all that so it’ll make it better.  That’s what’s going to happen…I was telling you guys… every budget’s a rate but it was a normal rate.  It’s 1300.

BGG ~ I disagree entirely. Not in July. However, there is no guarantee not until 2025 either… I already gave the conditions. There were 2. It has NOTHING to do with this current nonsense.

Paulette – Dinar Guru  Implementation of Article 140 seems to be on the horizon… This is likely the bone that was thrown to the Kurds in order to get the Budget passed. Latif, a Kurd, wanted to make sure the Supreme Judicial Council is on board.  This appears to be a key to him signing the budget along with resolution of the 400,000 barrels/day issue with Turkey.  All seems to be coming together nicely!

Clare – Dinar Guru  Article: “Iraq Pays The Sums Of Its Membership In The World Trade Organization”  Quote: “The Minister of Commerce and Chairman of the National Committee on Iraq’s accession to the organization had issued directives to give the issue the utmost importance.“

Paulette – Dinar Guru  They continue to talk about the “parallel rate” when they have been talking about “a significant drop in the dollar”.  Saleh clearly noted “2% Required”. They are still hovering around 10%.  They have put many things in place and perhaps have used this as a cover/ excuse for the de-dollarization process that we all looked for…prior to them taking the next step to change their currency and bring out the NSCN’s and Fils…I don’t see it feasible to run their country very long on the current currency structure.  All seems to be falling in place.  I would be ecstatic if the “parallel rate” got to 2%.

Pimpy – Dinar Guru  Article:   “Iraq is witnessing remarkable growth in the world of e-commerce for the first time“  Obviously this is good.  It’s another one of those things that helps strengthen the economy inside Iraq.  As you are aware the stronger the economy the stronger the dinar.  

Sandy Ingram – Dinar Guru   On the surface Iraq appears to have achieved a measure of stability.  The country finally has a functioning government after a year-long political vacuum.  Terrorist violence has fallen to  its lowest rate since the 2003 US invasion…however %&*$ is happening behind the curtain…For those of us outside of Iraq looking in, everything appears to be fine and for the most part it is but let’s get real with what’s really happening… Article:  “Iraq is Quietly Falling Apart”   Iran is silently and quietly…setting up financial systems of failure for Iraq starting with the 2023 budget that Iraq cannot afford.

Nader – Dinar Guru   The ATM I cannot comment on it because I never saw a newer ATM, maybe operated like I told you before.  But they’re not loaded with smaller categories because they didn’t even print it…They have picture of them but they didn’t print it.  It’s a waiting game…