Dinar Observer Daily

Samson – Dinar Guru  Article:  “Chinese goods to be sold to Iraqis in Dinar”  Quote:  “Iraq’s dealings with China in the yuan currency needs more time, and this requires building an oil refinery inside China, so that it supplies quantities of oil outside its share in OPEC, given that the refinery is Iraqi, and here neither America nor anyone else can prevent Iraq to take this step.”

Mountain Goat – Dinar Guru  …as long as the budget is not yet opened a new rate can be calculated within the budget.  There is always times to change it if it is not yet passed in parliament…they can adjust it for the new 1320 fixed rate of the dinar. This has been the holdup…as told to me by my CBI contact, is that they are holding off also because they know yet another rate change is expected and is coming...between 1000-1150 within this 90 days.

Nader – Dinar Guru  This week two good things should happen.  The budget should reach Sudani by Saturday I hope.  The 2nd thing I heard and it’s confirmed in the budget there’s a rate and it’s a good rate after all.  They didn’t tell me how much but they said it’s a good rate.  Me accept even 500 I accept.  500 to 1, I accept it.  I’ll take it and then you can talk about float and all that stuff.

Pimpy – Dinar Guru  Iraq has one of the largest gold reserves in the world and the crazy thing about it is most of the gold is on the surface.  The Iraq Central Bank is doing a lot of what central banks are doing around the world which is increasing their gold reserves…Iraq went from 96.42 tons and jumped up in July of 2022 to 130.32 tons…which is awesome…

Kaperoni – Dinar Guru   Big news for Iraq investors  today.  As we stated numerous times, the value of the dinar will be based on the success and growth of Iraq’s economy…today, Iraq announced a significant economic hurdle has been achieved. The Iraqi Council of Ministers has agreed to accession to the Convention on the International Landing Transport System thus allowing the entry of thousands of trucks into Iraq containing goods, materials to revitalize Iraq!

Mountain Goat – Dinar Guru   …when I talked to my CBI contact late last week it was a very positive conversation and I was left with the impression that this RV saga could finally be over much sooner than we think. I could not get a date since my contact told me there is no date set and that there are only targets.

Pimpy – Dinar Guru  Somebody said…they changed the rate again.  I said no.  I don’t see that nowhere.  None of the articles say they changed the rate but they did increase the number of outlets where you can purchase US dollars if you need them [Inside Iraq]…

BobTheTaxMan – Dinar Guru   Let’s take an example…somebody purchased it [Iraqi dinar] for a thousand bucks.  The projected value would increase to $1,000,000.  This particular investment type is treated as ordinary income.  They decide to cash it all in at once.  Here’s the result:  They have a taxable event.  They lost 37% to the feds and 13% to the state.  (That’s before the “Green Book” is applied.) That leaves them with half… $500,000…to be able to invest.   Everything that comes off that investment…is taxed again.

Pimpy – Dinar Guru  Article:  “Iraq’s foreign currency reserves hit $115 billion high”  This article caught my attention…the amount of reserves they have…it’s 5x the amount of their external debt.  We know they have $115 billion in foreign reserves...they’re saying if this was converted into Iraqi dinars it is approximately 150% of the amount of currency that’s there…They have approximately $8.4 billion in gold assets.  If you add the two together – $124 billion…it comes out to an exchange rate of approximately $1.61…that’s not counting all the other assets like oil and deposits and everything else.  The exchange rate…way undervalued…

Militia Man – Dinar Guru  Muhammad Saleh...says their reserves are $115 billion which is up from the $90’s.  They also increased their gold reserves from about 96 tons to 132 tons…It’s really truly amazing …by him saying we have about 5x what we need in foreign reserves…to me that means they’re going to be able to support the value of their currency because they have such a huge amount of reserves and gold and money coming in from abroad.  I think they’re bringing this up today is because it’s going to give support to the investors to know they have the ability to…defend the currency value.

Clare – Dinar Guru  Article:  “Official: Iraq’s reserves of foreign currency reach the highest level at 115 billion dollars”  Quote:  “Saleh explained it…the coverage of reserves from foreign exchange to the exported national currency amounts to nearly 150%, which is a very high percentage and represents optimal efficiency in reserves management standards, as well as covering the external debt that is obligatory to pay Iraq by about five times.“

Pimpy – Dinar Guru   Question: “What’s going to happen with our dinar when they re-denominate their currency? I think we will be left holding a worthless currency that we have today.”  No that’s not going to happen…we’re not gonna be left with some worthless currency.  We’ll be able to exchange it.

Dinar Investor – Jeff  As of right now Iraq has achieved political stability since October of last year.  They’re moving forward to get their economics launched and rejoin the international world.  Those are the steps they’re in the middle of right now…

Militia Man – Dinar Guru  At this stage of the game we’re expecting them to have an education process.  If they’re going to be international currency and they’re going to come out with an international real effective exchange rate they’re going to need new small category notes…from the CBI’s website back in 2018 they allocated millions and millions of dollars to print small category notes…hopefully this is one of those times where we’re going to see some education…we can see it any time.  That’s where we’re at…

Henig – Dinar Guru   Article:  “US specialized agency: Iraq will not ‘undermine the dominance of the dollar’ by paying the yuan to China”  Quote:  “Middle East officials are quick to say that the dollar will remain the currency of choice for energy,“

Sandy Ingram – Dinar Guru  Many of us are wondering if these new deals with China…are good for our Iraqi dinar investments…what we are seeing is a small country pulling away from the west and moving towards friendships, partnerships and deals with China and neighboring countries.  This is not necessarily a bad thing for Iraqi dinar investors.  As long as Iraq is making safe progress we don’t care who they hold hands with as long as sanctions are not in place with the people they are holding hands with.  We want an increased value in the IQD against the US dollar…

Pimpy – Dinar Guru  Gold is the second largest export for Iraq next to oil and gas.  You can only imagine what would happen to Iraq if they would allow an actual mining company to coming in there and mine all the gold…

Pimpy – Dinar Guru  When it comes to Iraqi dinar there’s a lot of variable that’s involved.  It isn’t going to happen overnight.  It’ll most likely happen in increments.  There’s a lot of things that people have to take into consideration…

Deepwoodz – Dinar Guru For me the mystery is due to what we’ve learned, that they cannot reveal a major change in their rate due to legalities…There are finer details and inner workings we are not privy to… I for one am not worried…there are hundreds of articles in just the last couple weeks alone concerning the exchange rate, contracts, other countries, online platforms, sonar devices, etc.  None of this makes sense at 1300, 1190, or even 1:1. All this sounds like one of the most valuable currencies in the world.

Jeff – Dinar Investor   When you look at their actions…about 2 weeks ago they had a major meeting in Washington D.C…the Iraq Central Bank met with the U.S. Treasury and Federal Reserve to lay out all the ongoing future requirements and steps that are going to be put in place regarding our money, their money and some other currencies out there and some precautionary steps in regards to the dollar – the cans and the can’t do’s.  A lot of good things are happening…

Militia Man – Dinar Guru  When we’re talking about value we’re talking about things that are determined from what?  Income streams beget value…and assets create value.  They don’t want to underestimate the value and they don’t want to overestimate the value.  They want it right it line with what is fair or real – Real Effective Exchange Rate is on the table…

KandG – Dinar Guru   Article:   “The Kurdistan Regional Government announces reaching an initial agreement with Baghdad on the draft budget law”  Quote:  “the Iraqi government revealed, two weeks ago, that the Ministry of Finance had begun to re-prepare the general budget for the year 2023 according to the new exchange rate (130) thousand dinars per 100 dollars.” …Yes – I’m deemed negative but in actuality it is not negativity but looking at ALL articles, not just the ones that are favorable…

Paulette – Dinar Guru  Typically, it [the budget] will go through First Reading and then go to Parliament’s Finance Committee for review.  This review is often at least  2-3 weeks and often much longer.  It then comes back for Second Reading and if all agreed, it can then be passed.  If not agreed it will go out for at least three days before Third Reading and passage paragraph by paragraph with the first paragraph delineating the rate.

Sandy Ingram – Dinar Guru  The exchange rate between the USD and the IQD is still at 1458 on the international currency feed.  We don’t know why it has not calculated to 1300 per the CBI’s rate change…[I’ll] keep you posted.

Pimpy – Dinar Guru  There’s a difference in RV and RI…RV is when you re-value a currency.  We saw a revalue when the Iraqi dinar went from 1190 dinars to 1450.  That is an RV.  An RI is when you had an exchange rate for whatever reason they changed it and then once it was done they just reinstated it.  That’s what happened to Kuwait.

Militia Man – Dinar Guru   There is some really big information that came out today…From The Arab Monetary Fund and Al Sudani talking about joining the International banking system. This is huge. These people are telling us they are going International.

Pimpy – Dinar Guru  The United States has been tightening the screws down in Iraq because they feel money is being smuggled/laundered…over into Iran circumventing the sanctions…which is a no-no…we’ll notice if the Untied States starts loosing up with the dollars…

Militia Man – Dinar Guru  The government returned the budget to the finance ministry in order for them to adapt it to a new exchange rate.  Our view is the 1310 is something in the past.  We believe there’s going to be a different change coming…I hope you guys feel like I do.  You should be excited…

Clare – Dinar Guru  Article:  “Association of Iraqi Banks: Dealing in the Chinese yuan may provide the possibility of reducing import costs”  Quote:  “the Central Bank will consider, after controlling the exchange rate of the dollar in the balance market, by linking the price of the dinar to the dollar immediately and not at fixed prices.”

Deepwoodz – Dinar Guru  Question:  “article says the budget will reach the house this week.so does that mean the com agreed on everything to send it to the goi?”  I think yes…The COM is Sudani’s selected government whom Parliament gave a vote of confidence for. Between them and the PM, they are carrying out what they’ve been calling the government program. It’s supposed to be why they achieved the approval of Parliament in their beginning.  I believe that this budget, like everything else it seems since Sudani came on scene, will pass scrutiny rather quickly. As it should be reflective of all the promises they made in order to gain power.