Dinar Observer Daily

Kaperoni – Dinar Guru Article quotes:  “the economic expert, Sabah Alo, called on the government to take a decision to float the Iraqi dinar, similar to the Egyptian experience of floating the pound.”; “It is better that a decision be taken to float the Iraqi dinar and stop selling the currency at auction and the Central Bank of Iraq,“; “The core issue to support the dinar is the presence of local productivity”   The dinar…may go up in value, but it will not significantly overnight RV.

Sandy – Dinar Guru  Article: “Iraq aims to shift investment priority from oil to gas sector, minister says”  This has quietly been sitting at the bottom of the news feed for a little over two weeks.  Iraq is taking to heart the recommendations to diversify the country’s industry income…natural gas…it looks like Iraq’s decision over two and a half weeks ago to start exporting gas is right on time.

Pimpy – Dinar Guru  Question: “How does 1190 or even 1000 [rate for the dinar] give the people more purchasing power?”  The Iraqi people lost 260 dinars [1190 to 1450] in the rate change compared to what it was before…21.8% of their purchasing power was lost…although to you, you’re like ‘This isn’t purchasing power!  This is nothing!’ …If you’re living in Iraq and you’re trying to budget…and you’re not making that much, an increase of 21.8% would be a huge gain to you…the difference between the old rate to the new rate was a loss of 21.8% of their purchasing power.  Bringing it back to the original 1190 would give them back 21.8% of their purchasing power.  [Post 1 of 2]

Pimpy – Dinar Guru  Let me put it another way…Let’s say you’re making $1000 a week and then all of a sudden they take away 21.8% of your check.  Now instead of getting $1000/week you get $782/week.  See the difference? …You’re not looking at it through the eyes of an Iraqi person who actually lives off the dinars…somebody takes away 21.8% of your money now you’re only making $782 you would notice that.  You would be pissed off.  Imagine they gave that back to you.  How happy you would be.  What could you do with $218 more per week?  …to you the change from 1190 dinars to 1450 is no big deal so if it comes back to 1190 dinars it’s still no big deal to you but it is if you live in Iraq and you live off of the IQD… [Post 2 of 2]

Mountain Goat – Dinar Guru  …While we wait for our event of moving back to FOREX, we are going to hear lots of news on the project to delete the zeros. This is our sign they are finally serious. I believe this must come next...We don’t care about the program rate inside Iraq that was meant to be temporary and is way, way overdue to be reinstated…The current rate of the Iraqi dinar is a FAKE & SURPESSED “program” rate and does not reflect the true and honest VALUE…we are waiting for the time when the TRUE and HONEST VALUE of the dinar is reflected in the rate assigned to it.

Dinar Update  The UNSC, Iraq officials,  Kuwaiti officials have confirmed that on Tuesday the UNSC voted unanimously to release Iraq from Chapter VII sanctions.  It appears to be official.  This is great news.  What we have not seen is an official proclamation or ceremony that Chapter VII has been lifted.  Maybe this will not come… many expect sanctions/restrictions to be lifted from European and American banking and watch-lists as a result of chapter VII lifting.

Pimpy – Dinar Guru  Right now I think more than anything Iraq needs to get their government formed before they can make any kind of changes…I know they’re telling you what their intentions are…but it’s kind of hard to start running before you learn to walk…even if the central bank of Iraq made plans to change the rate they’re not going to tell you.  They would not do that in advance.  They’re just going to keep denying it, denying it, denying it.

Mountain Goat – Dinar Guru  …The news could not get any better.  I especially like the statement…and I quote “will restore its legal status in the international community”. Folks you have to see it too…that FOREX trading is coming back to Iraq and the CBI’s intentions…The writing is on the wall…  

MilitiaMan – Dinar Guru   Article: “Iraqi optimism about economic gains after exiting from Chapter VII”   …from the looks of it they apparently are now looking to be forced to make an exchange rate change or blow up everything they have worked on for the last two years. It is also looking like they will have to depeg from the USD and likely to be with an immediate urgency, IMO…Chapter VII being lifted has it’s consequences that will require immediate decisions specific to the international treatment with respect to the use of the Iraqi Dinar…IMO.

Pimpy – Dinar Guru   There is a lot of chatter about the exchange rate, more than we heard in a long time but they’re not just going to come out and say in the news, ‘Hey this is what we’re going to change the rate to’  before they actually change the rate because then if it’s something major well then everybody and their mom is going to run over and buy IQD…so it’s not even going to be in the news until after it’s already been changed.

Clare – Dinar Guru   Article:  “Iraqi optimism about economic gains after exiting from Chapter VII”   YES THEY PAID KUWAIT…. THAT FINANCIAL FILE IS NOW COMPLETELY DONE! IMO.

Mountain Goat – Dinar Guru   …On Wednesday the UN Security Council officially announced Iraq’s exit from the “Chapter VII…This has “reinstatement of the dinar” indirectly written all over it…

Pimpy – Dinar Guru  The only thing that matters is that Iraq out of Chapter VII.  Period.  Restrictions are lifted.  They’re looking forward to joining the rest of the international community and working together and strengthening their economy.  A strong economy means what?  A strong dinar. A strong dinar means what? A valuable dinar.  A valuable dinar means what? A better exchange rate…

Samson – Dinar Guru  Article “Kuwait congratulates Iraq on its exit from Chapter VII procedures”  Kuwait’s speech quote “We welcome the termination of the mandate of the United Nations Compensation Committee over Iraqi funds, and we also congratulate brotherly Iraq on its commitment to implementing decisions The United Nations and his exit from Chapter VII and the end of the compensation file.  He added, Iraq’s fulfillment of its international obligations represents a starting point,” stressing that “we will spare no effort to support Iraq’s sovereignty, independence and territorial integrity.”

Militiaman – Dinar Guru  Take note that they have been relieved of Chapter VII per the UNSC…

Pimpy – Dinar Guru  Article UNSC meeting coverage “Security Council Unanimously Adopts Resolution Confirming United Nations Compensation Commission Has Fulfilled Its Iraq-Kuwait Mandate”  People are asking the obvious question “Wasn’t Iraq released fro Chapter 7 back in 2013?‘  Yes it was.  Partially.  That’s causing a lot f confusion…all of it is great news for Iraq and great news for individuals hat are inviting in Iraq…I love how people…say they were released from chapter 7 back in 2013 but don’t dig any further than that.  They were only partially released…the only thing that matters is that Iraq is out of chapter 7.  Period…This is the [UNSC Article] that releases the rest of it all together…They are now fully out of Chapter VII...

Godlover – Dinar Guru  Community comment “Iran thinks by shooting at US Troops they will stop the RI of Iraq from happening.”  To assume Iran is preventing or delaying the monetary reform, seems impractical to me. Iran is not going away & they will continue to have a foot hold in Iraq long after this blessing. The truth is, Iraq will release the economic reforms when they are ready…..period imo. Seat the new government & Iran will become less of an issue with Iraq. I still look for a new government seating, then that government will have the authority to sent the budget to parliament for the readings & vote. Then it will be sent to the president, whom has 15 days to sign into law or it automatically becomes law. God willing, the budget opens at what we all seek.

Kaperoni – Dinar Guru  The United Nations published the official resolution removing Iraq from Chapter 7.  Resolution 2621.  There has been an abundance of news articles over the last 24 hours in Iraq from economists, politicians discussing the benefits of this conclusion. This is something for Iraqi’s to celebrate. They now must move forward, begin to encourage investment to create a private sector…They no longer have the stigma or restraints holding them back from creating a thriving country and economy.

Pimpy – Dinar Guru  Article: “Al-Kazemi’s advisor:  Iraq is facing a global technological openness after leaving the seventh chapter”  Get ready! Being released from chapter 7 means Iraq is now open for business on the international scene – means the economical growth in Iraq is about to take off…keep in mind that the currency is still under restriction until they lift it… Quote: ‘lifting of all restrictions represents a technological and scientific process that our country will witness…’ Congrats to Iraq. All restrictions lifted.

Sandy – Dinar Guru  Article “Currency Revaluation:  Historical examples”  In this article we learned more recent currency revalued that have created wealth for investors…  Quote “The one thing that is clear about currency revaluations or devaluations, is that they don’t come with prior warning.  They just happen, catching most people unaware.  Central Banks and the international powers at play cannot share any information prior to an even happening, or it would undermine the economic impact”

Kaperoni – Dinar Guru  …So Iraq apparently had their meeting today at the United Nations Security Council. Iraq upon completion of payments to Kuwait now is officially out of UN Chapter 7. Though this is excellent news, it has nothing to do with Iraq ‘s exchange rate.

Samson – Dinar Guru  Article:   “Legal expert: Iraq’s exit from Chapter VII of the Charter of the United Nations is a good sign”  Quote: “The Security Council voted unanimously to remove Iraq from Chapter VII of the United Nations Charter after 23 years of political isolation and lack of sovereignty that came against the background and practices of the former regime…“

Pimpy – Dinar Guru    People don’t know the difference between and RI and an RV…When we are talking RI we are talking about a reinstatement – to restore someone or something to their former position or condition.  So to put back to where it was.  When you talk about an RI that means whatever the rate was before the program rate. I believe it was $3.22…this is what everybody is hoping and waiting for right here – the RI.  The RV is a little bit different… [Post 1 of 2]

Pimpy – Dinar Guru   RV/revlue – assess the value of something again.  Adjust the value of a currency in relation to other currencies.  So a revaluation is just changing the value of the currency.  That’s all it is…anytime they change the value of the dinar. [Post 2 of 2]

Samson – Dinar Guru   Article:  “After exiting the seventh chapter… Al-Kazemi tweets: A new beginning for Iraq to restore its role and presence”  Al-Kazemi said in a tweet, “Iraq has crowned its efforts on the path of normal relations with its neighbors, brothers and the international community by closing the file of UN resolutions that resulted from the absurd adventures of the former regime, and for which our people paid harsh prices for 32 years.”

Clare – Dinar Guru   Article:   “The Minister of Foreign Affairs announces Iraq’s exit from Chapter VII procedures“.  Quote:  “Iraq is no longer required to pay any additional sums of money in the future or deal with Chapter VII procedures.“

Pimpy – Dinar Guru   Article “A new drop in the dollar in Baghdad…and exchange offices:  the currency market is turbulent”  Here we go…What they’re saying is the U.S. Dollar is dropping in value against the dinar…the changes are…not huge but they’re at least happening…talking about 13 dinars…I don’t expect the US dollar to fall overnight although it’s very possible but it is going to gradually go down…what they’re trying to say here is the rumors that are floating around is that the dollar is losing its value against the dinar and a new rate change is going to be announced...

Sandy – Dinar Guru   Article:   “Iraq’s Supreme Court Rules Against KRG oil Independence”   The FSC (Federal Supreme Court) surprised everyone last week by giving 4 major verdicts on long-standing legal disputes between Baghdad and Erbil…ruled that Kurdistan regional government’s independent oil sector is unconstitutional...

Mountain Goat – Dinar Guru   We…witnessed in this news period that the House of Representatives set a date for a meeting with the Minister of Finance and the Governor of the Central Bank in order to discuss the dollar exchange rate. Yes, exchange rate…It’s all now about the exchange rate…the Minister of Finance did not show for the scheduled meeting. His meeting was rescheduled for a later date this week.

Kaperoni – Dinar Guru  The central bank governor made it clear this weekend they are in charge of monetary policy and the dinar exchange rate, not politicians or political blocs…What is so amazing is how Iraq in so many ways tries to take shortcuts.  And in this case, many just want to raise the value of the dinar.  It doesn’t work that way!  Id [If?] all these political figures want the dinar value to increase, they should work together to create and pass laws to encourage investment, encourage diversification and local production. Then, when they succeed the CBI will have no choice but to raise the value as a result.