Dinar Observer Daily

Clare – Dinar Guru  Article: “Iranian Parliament approves closure of Strait of Hormuz”  Quote: “Iranian state television reported on Sunday that the Iranian parliament has approved the closure of the Strait of Hormuz, pending approval by Iran’s Supreme National Security Council. The decision comes after Iran was subjected to a series of US strikes early Sunday morning, targeting various nuclear facilities in Iran“

Militia Man – Dinar Guru  With Middle East tensions, what we’re seeing in the news on a daily basis…gives a little bit of anxiety…to a lot of people…I understand it…But the ultimate thing is commerce and trade still keeps going.  That cog is still going to turn…On a good note Iraq is still pushing forward.  We have evidence of that…The borders are still open.  They’re still doing commercial trade through trading partners.  They’re still focusing in on progress. 

Clare – Dinar Guru  Article: “Baghdad caught between allies as US hits Iran”  Quote: “Iraq finds itself in a delicate diplomatic dance, caught between its two key allies—the United States and Iran—after the U.S. launched a series of striking military actions…Iraq has strategic and economic links with the United States, including military collaboration and security cooperation, while also retaining substantial cultural, political, and trade ties with neighboring Iran.”

Mountain Goat – Dinar Guru   …the U.S. Treasury has said it will give a “green light” to go ahead, however with stipulations. First if they must complete successfully the Iranian issues and trade must resume to normal between the two countries. Then the dinar stabilize again. The Project to Delete the Zeros must be successful with maintaining low rate of inflation. This will be the gauge…rate. So, we are getting very close but a lot rides on the Iranian issue.

Sandy Ingram – Dinar Guru   We need to ask ourselves has Iraq been lying to us about previous banking improvements?  The answer is yes and no.  They were doing what they said they were doing but not what the Department of Treasury required.  We were led to believe Iraq would be able to integrate without error with international banks.  That belief was incorrect.  Here’s what Iraq is doing as per the Treasury department’s and the Iraqi Prime Minister’s demand – Article “Iraq announces Major Banking Sector Overhaul”  The plan involves major restricting of both public and private banks with top global consultants enlisted to guide the transformation.  Ernst and Young will oversee reforms of state-owned banks...

Samson – Dinar Guru   Article:  “Transportation: Significant progress in the plan to lift the European ban on Iraqi flights.“

Militia Man – Dinar Guru They aren’t going to tell us exactly when something’s going to happen.  They’re not going to tell you how much it’s going to happen at.  They can’t do that and there’s obvious reasons for that.

Sandy Ingram – Dinar Guru   US news report “Militia threatening to shut down the Strait of Hormuz…”  It will do Iraq no good for oil prices to double or even triple if they cannot deliver the oil to the world.  This could be a massive, massive blow to the Iraqi economy including the IQD.

Jeff – Dinar Guru   I stressed…we weren’t going to see the rate change till Iran is dealt with.  As you see, that stands true…Iraq has not revalued because they’re waiting on a resolution between Iran and the United States.  Whether it’s based on an unconditional ceasefire or an agreement has been reached from military action…That’s what we’re waiting on.  The war can either go very quick or take a little while depending on whether foreign countries get involved…

Mountain Goat – Dinar Guru   [Wednesday] was my usual call to Iraq…I was told…that if this Iranian issue can be resolved quickly, as within a couple weeks, they fully intend to move ahead with currency reform very quickly. The only solid reason holding it back now is Iran. They had wanted to conduct the process prior to any real aggression from Israel but would not get the go ahead from the U.S. to move forward. Remember Iraq needs the full support of the U.S. for the Project to Delete the Zeros because the next stage preceding it has to be the reinstatement…I was told and I quote “technically if all goes correctly and these nuclear sites do get destroyed, we can expect the currency reform process to move ahead very quickly”.

Sandy Ingram – Dinar Guru  Why is the IQD not globally traded?  First it’s because of capital controls.  Iraq restricts the flow of its currency across borders.  Second, there’s a lack of market confidence due to war, sanctions and  corruption.  The IQD isn’t trusted as a stable investment by international markets.  Third we have sanctions and compliance issues.  Concerns over dollar leaks to sanctioned nations like Iran make most global banks wary of dealing in IQD.  Finally, there’s no offshore clearing or liquidity.  There’s no active IQD trading infrastructure abroad…

Kaperoni – Dinar Guru  Good news for Iraq! The financial system is improving and soon to be integrated internationally as well as the dinar becoming stronger (within compliance).

Clare – Dinar Guru  Article: “Sudanese advisor: Colorful noise behind the dollar’s rise”  Quote:  “Salih, explained…the rise in the US dollar exchange rate against the Iraqi dinar in the parallel market is due to what he called ‘information noise’ related to the Iran-Israel war…The secondary exchange markets do not represent any economic value in stabilizing the national economy today, as long as the fixed exchange rate and external value of the Iraqi dinar are tied to foreign currency reserves that are the highest in the country’s monetary history, and the efficiency of those reserves exceeds fifteen months of trade coverage, compared to the global standard of three months.“

Sandy Ingram – Dinar Guru  At this point the dinar is unlikely to see meaningful appreciation unless Iraq shifts to a free floating exchange rate or undertake sweeping financial reforms…

Pimpy – Dinar Guru  Community Comment: ” ‘In country’ and ‘out of Iraq’ are two different scenarios.”  What do you mean two different scenarios?  No two different scenarios.  Once you change the exchange rate it goes worldwide.  There’s not two different scenarios period.

Sandy Ingram – Dinar Guru   Iraq is on the Forex market… but not in the same way as major global currencies like the US dollar, Euro or British pound.  The IQD is not freely convertible internationally.  You can’t walk into a bank or forex platform in the United States or Europe and easily trade IQD.  Most major Forex brokers do not list the Iraqi dinar for retail trading because it is a non-convertible restricted currency.  Its trading is confined mainly to inside Iraq or in niche physical currency exchanges abroad, often for speculative purposes.

Mountain Goat – Dinar Guru   So, again more…talk…about some $2 rate in the country of Iraq and rolling out the newer lower denominations. I can guarantee you that…There is NOT $2 rate in Iraq. They are still using the official CBI rate of 1320. This is also bullshit about lower denominations being out in Kurdistan or elsewhere…Trust me, when the CBI does bring out the newer lower denominations, articles will proceed it in the news…My CBI contact has told me months ago that the news articles are already designed and ready to go, given the proper timing. It is not yet!  It will not be and cannot be some secret information only told to a few.  …I have a contact that works directly on this project to delete the zeros in the CBI and I would know if any new rate comes out.

Pimpy – Dinar Guru  Look, there’s no saying for sure they’re going to take the zeros off.  Common sense tells you that they are but they might surprise us.  All we got to do is cross our fingers.  Let’s hope they keep the zeros on and they give us a new rate…

Samson – Dinar Guru  Article:   “Iraq joins the club of advanced countries in electronic payments with 22 million bank cards.“

Militia Man – Dinar Guru They’re going cash less.  That’s just the way it’s going to be.  They’re not going to need much cash.  When they revalue their currency to a different denomination and they apply a real effective exchange rate, they’re not going to have big notes anymore.  It’s going to be less cash.

Clare – Dinar Guru  Article: “The era of the digital republic has begun. Iraq is cashless, and the Central Bank imposes its authority as the ‘ruler of the country.’  ” Quote:  “Al-Tamimi explained that the government seeks to reduce demand for cash by converting transactions into digital electronic formats, which will ease pressure on the public treasury.”

Samson – Dinar Guru  Article: “The era of the digital republic has begun – Iraq is cashless, and the Central Bank imposes its authority as the ‘ruler of the country’ “

Kaperoni – Dinar Guru  Article: “The era of the digital republic has begun. Iraq is cashless, and the Central Bank imposes its authority as the ‘ruler of the country.’ “

Mountain Goat – Dinar Guru  …Didn’t the UN just tell us that “IRAQ WILL BECOME A BANKING POWERHOUSE BOTH DOMESTICALLY AND INTERNATIONALLY”.  Yes, wealth is leadership and Iraq is certainly taking the point lead under Al-Sudani in this area…

Sandy Ingram – Dinar Guru  For decades Iraq has relied almost entirely on oil sales to support its economy.  But now the government is working to create a second source of income by getting involved in the global carbon market…Iraq also plans to raise money through carbon bonds which are investments tied to projects that lower emissions.  This shift not only helps Iraq cut pollution…but also attracts new investors and supports long-term financial stability.  This is excellent news for Iraq and for IQD investors. 

Clare – Dinar Guru  Article: “The currency printed in Iraq is at its lowest level since a year.” Quote:  “Data showed Central Bank of Iraq The value of the issued currency, “printed” in Iraq Currently at its lowest level in a year.”

Pimpy – Dinar Guru  Question:  “Does Pimpy hold dinar?”  Yes, Pimpy has 5 million dinars.

Sandy Ingram – Dinar Guru   As long as there is positive movement in Iraq [we] feel obligated to keep going…

Militia Man – Dinar Guru  Iraq is under sanctions and is not actively traded globally at any significant means.  But when they are, when they do have a real effective exchange rate, there’s going to be an impact to all [their] trading partners…When Iraq hits the Forex they’re going to be monitoring all those [trading] countries to play by the rules with a level playing field…They’re going to have to play fair with real fundamentals…They’re not going to want anybody taking advantage of when Iraq has a real effective exchange rate.  They want a stable exchange rate.

Kaperoni – Dinar Guru   Article:   “Al-Atwani: Iraq’s integration into the international financial system is no longer an option, but rather a necessity to enhance confidence in the national economy.”