Dinar Observer Daily

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…

Pimpy – Dinar Guru  People were told that you cannot exchange your dinar unless you have a humanitarian project.  That’s false… that’s another thing out there that drives me crazy.

Clare – Dinar Guru  Article:  “Parliamentary expectations for the arrival of the federal budget before the start of the second legislative term”  Quote:  “Parliamentarians expected the federal budget to arrive before the start of the second legislative term, which will start next Monday.“

Mountain Goat – Dinar Guru   Iraq started the process of joining the WTO 18 years ago…the process was delayed due to corruption in Iraq… due to political and economic instability this was stalled until 2017…Since then, the fast-tracking process is underway…Iraq has made considerable progress in this front…They must be VERY close to full membership…I will say that I believe the WTO is also going to push that Iraq reinstate the IQD back on FOREX and relieve Iraq of all sanctions on their currency… Iraq was supposed to be already reinstated on FOREX, as Dr. Shabib wanted to do back in January 2013.

Walkingstick – Dinar Guru   The 3-zeros are going to drop gradually as the IQD floats internationally.  You will see the exchange rate go from .000 to .00 to .0 to . – that’s the float.

Pimpy – Dinar Guru   The re-denomination of the Iraqi dinar…too much has happened with the Iraqi dinar for it to continue to exist in its current state.  Something needs to be done about that.

Clare – Dinar Guru  Article:  “Minister of Oil: We have achieved more than $115 billion in exporting crude oil for the year 2022“

Nader – Dinar Guru  The only way for you to be comfortable and say okay it’s time or it’s close is when you see him change currency.  When you see him [CBI] come out with a new currency and stop buying and selling the dinar…

Sandy Ingram – Dinar Guru  This is an extremely important lesson and real case study of the Central Bank of Egypt’s decision to float the currency.  We are sharing this information so you know what to expect or not expect should and when Iraq floats their currency…Floating a currency… means the government is no longer controlling the value of the Egyptian pound…For decades the Egyptian currency was pegged…it could only go up or down based upon the fluctuations of the U.S. dollar…Then Egypt needed a loan from the IMF… [Post 1 of 2]

Sandy Ingram – Dinar Guru  One of the conditions required Egypt to float their currency…the immediate results were high prices and…a sudden widening of the exchange rate between…the black market and the Central Bank of Egypt’s currency rate…The value of the Egyptian pound dropped by nearly 50% last Thursday however in the long term it is hoped…floating the currency will control inflation…Egypt has been running desperately short of foreign currency.  Iraq does not have this problem…Iraq foreign currency reserve is now over $96 billion... [Post 2 of 2]