Dinar Observer Daily

Stephen – Dinar Guru  Lower denominations are being discussed.  It’s out in the public.  It’s out in the forefront.  This is an important piece of the puzzle.  Article quote:  “Iraq parliamentary finance committee says there is an intention to issue notes smaller than 250 dinars.”  At today’s rate 250 IQD is only about 19 cents...Why would smaller denominations even be useful if there’s no change in the rate.  If there’s no increase in purchasing power, what good is a smaller denomination than 250 dinar?  It makes zero sense…If Iraq wants a substantially stronger dinar, lower denominations would become much more practical at a higher purchasing power.

Samson – Dinar Guru  Article: “PARLIAMENTARY FINANCE COMMITTEE : THERE IS AN INTENTION TO ISSUE BANKNOTES IN DENOMINATIONS SMALLER THAN 250 DINARS“

Ariel – Dinar Guru    The rate change is a consequence of budget authorization, not a precondition for it…The budget is the trigger. Everything else follows from it… The Actual Order of Operations:  1. Council of Ministers approves the 2027 budget with redenomination language. 2. Parliament ratifies it.  3. CBI executes the rate change (deleting three zeros, setting the new peg — likely to USD or gold per the Tier 1 asset framework). 4. IMF confirms Article VIII compliance.  5. IQD goes live on international Forex platforms.  6.  Banks begin exchanging at the new rate.

Jeff – Dinar Guru   Question:  “Are you of the idea that the revaluation comes after the reinstatement with the rate being set to float?” Jeff:  It can’t float.  It may be a managed float but not a massive float.  Managed is only + or – 10% per day.  Remember budgets are calculated off the currency value.  If the currency value were to be an aggressive float they would have to keep amending and re-approving the budget.  They’re not going to do that.  It can only be a managed float.  Under a managed float it has very minimal movement.

Clare – Dinar Guru  Article: “Iraq ‘cannot afford to take risks’… State administration warns of the repercussions of US sanctions”  Quote: “On Saturday, the State Administration Coalition discussed completing the government formation, the draft oil and gas law, and the country’s financial situation, while stressing the need to spare Iraq the repercussions of the US sanctions imposed on some countries, in light of what it described as the ‘difficult financial circumstances.’ ”

Stephen – Dinar Guru  Why not have a little bit of fun with it and speculate here…In my head, I think it’s a range.  I think it could be anywhere from 50 cents up to $3.72, somewhere in there.

David – Dinar Guru   I’m not convinced Iraq is concerned with what’s being held outside its borders.  It’s a worthless currency, hence the two rail system.  When it comes to the revaluation…based on history…it is more likely going to be revalued than not.

Jeff – Dinar Guru   If you go back to the year 2020 when it devalued, they put out countless articles telling us it was going to be devalued and go down.  They put all that out there, why?  Because it was a devaluation by 23%.  Here they cannot tell you it’s going to revalue.  They can’t…Adding zeros means their inflation is high, elevated, maybe hyperinflation and that’s why they’re adding zeros.  If they were adding zeros it would be going down in value…Removing zeros means it’s going up in value…They can tell you if they’re going to bring the value down or devalue it but they cannot tell you they’re going to increase the value.  They cannot tell you that.  But they basically have told by telling you they’re deleting the zeros.

Clare – Dinar Guu  Article:  “The Central Bank warns against fake news aimed at destabilizing the economy” Quote: “A short while ago, news spread on social media that the exchange rate had changed, and that the Central Bank had announced that deposits would be at a rate of 1460 dinars per dollar, starting tomorrow“

Stephen – Dinar Guru  For as long as I have been involved in this investment there’s been rumors about banks having De La Rue machines, [And] if a bank does need a De La Rue machines to verify your currency…?  The exciting thing is one of our private…community members shared a photo that he took at the bank yesterday…that does prove these De La Rue machines are at certain locations and the IQD, AKA Iraqi dinar, is programmed onto these machines…Paul shared this photo with us yesterday from his personal encounter with his bank…What I find very interesting is there are 180 currencies in the world…The Iraqi dinar, which is not an internationally traded currency yet and it’s not traded on Forex yet, why would you have that currency code on your machine to verify…if all these banks are saying they’re not dealing with it? …If we’re using common sense I think it’s pretty safe to say sometime in the near future they’re going to be using those machines to verify the Iraqi dinar.

Mountain Goat – Dinar Guru  I talked to my CBI contact…and I was told this decision of 2027 is not yet final.  She told me she cannot understand how they would even think about waiting that long to swap out the currency. This is something they need to happen now. Even another couple months might prove disastrous. 

Jeff – Dinar Guru   Question “Do you think we’re going to have to have a receipt?” Let’s talk about this receipt crap…You need receipts to exchange your dinar is the biggest pile of horse crap.  You don’t need it. If you went to Mexico and came back with pesos or you came back from Europe with euros, do you need receipts to exchange?  The answer is not just no, it’s  hell no…Put your thinking cap on.  At the bank level (not tax level) what do your receipts do for you?  Nothing.  Receipts don’t  prove your currency is real.  The security features on the currency do that.  Not receipts.  At the bank level receipts don’t do a damn thing for you…Your receipts are for your CPA and tax purposes.

Stephen – Dinar Guru  Are we going to have to trade in our dinars for [lower] dinars?  Unless you’re living in Iraq,  no.  We are in this process to make a profit.  We’re not here to exchange our old currency for new currency.  That would make zero  sense. 

Sandy Ingram – Dinar Guru  Many IQD investors have been told that when they experience a profit on their exotic currency investments there will be no taxes.  One of the reasons for this misinformation is because when you exchange currency at an international airport all that is required is your passport.  No taxes are applied.  However, if you want to exchange $5,000 or  $10,000 the entire process would be different...The moment you step away from the window the transaction is reported to the  Department of Treasury, aka the IRS...The United States has agreements with most countries and as part of these agreements United States citizens financial transactions over certain amounts are reported.  When you file your taxes and the transactions are not found on your tax return then you would trigger a paper audit and a CP2000 would be mailed to you.  From there, you know the drill. 

David – Dinar Guru  You cannot pass a budget unless you have an established rate…I’ve used the word float to contextualize what is going to happen with the Iraqi dinar.  But at best it’s going to be a managed float.  It will not exceed 8% to 10%.  I can guarantee you it can not...because if there is significant fluctuations in the currency it can destabilize…When I  say floating currency, it’s a managed float.  It has to be… Question “You’re saying a managed float from the new…price they put on the Iraqi dinar, correct?”  That’s correct.

Reset Intelligence – Dinar Guru  The CBI sets and announces the rate… any morning it chooses. It does not need the budget, the cabinet, or a vote.  That is literally the law: Central Bank Law No. 56 of 2004, Article 1/4/A, exclusive authority over exchange rate policy.

Jeff – Dinar Guru  They’re not waiting until ’27 to delete the zeros.  In my strongest opinion I think they want all the zeros deleted during Q4 which would be the beginning of October to the end of December.  The ’27 budget is based off of the new smaller currency value… Deleting the zeros means withdrawing the 3-zero notes.  The phrase deleting the zeros means nothing regarding the exchange rate…only means to phase out and get rid of large 3-zero currency notes.  That’s all it means.

Mountain Goat – Dinar Guru   I…want to point out the convergence of events that is about to happen. We will get peace in the middle east, Iran’s influence in Iraq will end, the IQD will be on FOREX, accession to the WTO, and we will be going to the bank. The only issue we don’t know for certain is the timing of it all.  For us we must watch the timing of the removing the zeros. This will be the movement we need to see. There is ABSOLUTELY NO WAY the IQD could EVER go back to FOREX at a rate to attract investors at 1/6 of a penny so it will have to be at least over the 1990 pre-war days of $3.22. Iraq MUST FIRST REMOVE THE ZEROS thus swap out them out for the newer lower denominations. The ONLY reason why they have not yet done this is due to corruption…Shut this corruption with Iran down and then remove the zeros and “away we go”…

Mountain Goat – Dinar Guru   Article: “IRAQI GOVERNMENT MAY INTRODUCE A NEW CURRENCY IN 2027” Quote:  “This development comes amid ongoing regional and domestic economic pressures, making 2027 a potential turning point for Iraq’s monetary policy.” …in this recent article from Baghdad… we learn of the urgency of completing the removal of the zeros. 

Stephen – Dinar Guru   Community Comment: “My husband worked in Iraq.  He was a contractor there.  He bought a bunch of dinar,  doesn’t have receipts…”  I have a problem too because I bought a lot of my dinar back in 2011 and the receipts…look  like white paper.  You can’t read anything on them.  You’re going to be fine…As long as your dinars are authentic and legitimate  you’re going to be okay. 

Jeff – Dinar Guru  The budget is a law.  All aspects of a law have to exist to approve it.  Budgets are calculated off of what is a currency value.  The correct currency value has to exist before they can approve that budget... Article quote “The  Iraqi government is preparing to submit the 2027 federal budget to the Council of Representatives by October.”  ...That’s more  confirmation the rate would need to change by the end of September for them to do that.

Samson – Dinar Guru  Article: “SHEIKH HAMOUDI : IRAQ WILL ANNOUNCE ON 1/10 [October 1st] THE PROJECT OF FULL NATIONAL SOVEREIGNTY”

Reset Intelligence – Dinar Guru  In 1990 two neighboring currencies both bought more than $3.00 each…One Iraqi dinar bought $3.22 sitting right beside its Kuwaiti neighbor at $3.47.  Two dinars, two neighbors, both above $3.00.  Then one was rescued and the other let out.  Iraq sanctioned and cut off watched its money run until a dollar cost 3000 dinars.  Same starting line opposite endings decided by one thing only whether the country was being let back into the system or locked out of it.  For more than 30 years Iraq was locked out…

Clare – Dinar Guru  Article:  “The 10 strongest currencies in the world… the top four are Arab!”  Quote:   “Today, the Kuwaiti dinar tops the list. One dinar can buy more than three US dollars…The strange thing is that some of the world’s strongest currencies actually come from countries that are not major global powers. They are often small, stable, and heavily reliant on oil revenues …Kuwaiti Dinar  It is considered the king of currencies…“

Sandy Ingram – Dinar Guru  Re-denomination and revaluation do not mean the same thing…A re-denomination changes the numbers printed on the currency, usually by removing zeros…Your purchasing power does not automatically increase.  If 1,000 old dinars equals one new dinar, your bank balances, prices, wages and debts would be converted using that same ratio…It does not automatically make you richer…A currency revaluation means the official exchange value of the currency is increased relative to another currency or benchmarks…Suppose one US dollar buys approximately 1300 units of a currency.  If the CBI changes the official exchange rate so $1 bought only 1,000 units, that currency would have strengthened in value against the US dollar…When Iraq talks about deleting or removing zeros investors must ask, Are officials discussing a re-denomination…or are they discussing a change in exchange rate or monetary reforms involving both elements?

Stephen – Dinar Guru  There’s been a firestorm in the dinar community arguing for redenomination…[or] are they going to revalue then redenominate?

Jeff – Dinar Guru   They told you Iraq’s going to be fully sovereign starting 10-01.  That suggests to me their real period for deleting the zeros, the 90-day window for that most likely will be Q4 October through the end of December of this year.  So that as of 1-1-27 when the new budget is in effect…[along with] the new smaller denominations…

Mountain Goat – Dinar Guru   …I want to emphasize…that the budget is based on the price of oil and not the exchange rate of the dinar…it is not yet able to base the budget on the exchange rate and must use the price of oil at this time…Later, when the dinar is priced on FOREX then the exchange rate can be a larger part and used for the budgeting purposes..

Stephen – Dinar Guru  The Iraqi dinar is a very real investment.  We are invested in the currency of another country.  It does not get more real than that…I believe IMO there will be a day that the Iraqi dinar does revalue.  That day has not come yet.

Jeff – Dinar Guru  There’s certain [people] telling you deleting zeros isn’t going to happen until January.  It’s up to you if you want to believe that.  I would not…Let’s bring some common sense into this.  Iraq cannot tell you the exact date they plan to delete the zeros...If the new budget goes into effect January 1, 2027 they need to have the new currency in place and the old currency out of commission fully withdrawn and removed by that time.  That’s why it makes the most sense for them to do the deletion of the zeros from October 1st through the end of December.