Dinar Observer Daily

Pimpy – Dinar Guru  Article:  “The price of a barrel of Brent crude oil reaches $62.34”   It seems like it’s going up about a buck or so every couple weeks.  This is good.  Keep on going up.  I know we want Iraq to rely on something else other than oil but it sure would be nice if they got a lot of revenue higher than what they budgeted for. This can help them really start taking a lot of these monies…so they can start developing and reconstructing Iraq, provide jobs to the public.  This is what we’re looking for…as there’s more jobs that are available then…the dinar becomes stronger.

MilitiaMan – Dinar Guru  …Taxes and Tariffs, Liquid Natural Gas, Tourism, Phosphates, Sulfur, Gold, and on an on, will support their REER (Real Effective Exchange Rate)!! Big time...imo…

Mountain Goat – Dinar Guru …as far as I know, the only way they can pay for imports if they cancel the currency auctions is to use the dinar. If they use the dinar it will have to be globally tradable. Am I missing something? So, if it is globally tradable it will  have to be reinstated on FOREX. If it is reinstated on FOREX we get to go to the bank. Then only question is about the new rate but we have a good idea what the rate will be as we can see the proposed rates on the bank screens in a “on-hold” state. It is currently at $5 plus. Yes, I said it is over $5.00 dollars in exchange for one dinar. But to get this we will need to see the revaluation in Iraq first, deletion of the zeros and the end to the currency auctions. So there is lots to do but it can all occur very suddenly…

MilitiaMan – Dinar Guru   There has been some good things happening.  What we believe that we’re seeing is a change that’s being presented on foreign currency sites that shows some support for what we’ve been talking about…what the IMF…the AMF…and the Central Bank is converging to use a digital system….so that they’re going to use…less cash…from the IMF’s information, from the AMF information and for all the information about Iraq not wanting to hurt the vulnerable, the obvious is what?  Something different is coming…this whole thing is by design...

Mountain Goat – Dinar Guru   …I talked about Iraq joining the Bona service for currency exchange practices between middle eastern countries. I explained what this may mean for the Iraq dinar. Now they can pay for imports using the dinar. This will allow the currency auctions to finally end…

Mountain Goat – Dinar Guru  …another tip for us is to watch what the GOI is about to do with the collections of the customs and tariffs. They have told us there is an electronic service to be used for this collection process and that this service must be capable of accessing the international currency exchanges. How else would they convert the currencies to the countries of origin and destination? We have known about this service for a long while. They have tried in the past to use this service unsuccessfully since the dinar was not yet international they could not.

Mountain Goat – Dinar Guru  I have told everyone so many times already that the VERY BEST time for the CBI too reinstate the dinar is at the beginning of a new fiscal year. The fiscal year begins in January. They have no plans to change the fiscal year to April…  The new budget is not yet passed and opened to spend and so this is not yet over and there is still time that we might see something from all this. The CBI must now coordinate with the finance ministry on the auditing process to ensure they too are all set to go.

Mountain Goat – Dinar Guru   The finance ministry is telling us that they expect to pass the final 2021 budget this Saturday or Sunday. It is a two-year budget. Kurdistan is the holdup but as usual, they will work out negotiations with them and will need a few days to do so.  Even if all goes well with the Kurds, don’t expect a reinstatement the next day…Instead relax and know it is coming soon and you will probably not have to wait until the year 2022.

Petra – Dinar Guru   I want everyone to understand that they are throwing around a lot of confusion.  A huge amount of confusion…I believe we are in the end days of this…

Walkingstick – Dinar Guru  Lifting the 3 zeros from their exchange rate should be a hot topic in articles in the near approximate future.

Petra – Dinar Guru    Last Monday who was in Iraq ?  Everybody!  The UK .  The IMF.  The GCC.  The IGBC.  Everybody and their mother was in Iraq last Monday.  Did we hear what that was all about?  No…obviously they were there for a reason…when all those people show up…world renowned financial entities all show up.  Obviously something happened.  We can’t talk about it yet.  But clearly there’s evidence there’s been significant progress…

Mountain Goat – Dinar Guru …we must go back to what we know for sure. The CBI confirmed that the Bona service will be launched on the tenth of February. …Bona is a platform that provides real-time clearing and settlement services for cross-border financial transfers between Arab countries and in Arab and international currencies. I am not predicting a date for the RV just do you know…If the Iraqi dinar is on Bona (which they announced it is) this may get a revaluation of the Iraq dinar in the middle east but not necessarily the reinstatement we desire which allows us to go to the banks in the USA. We might have to wait longer until it is connected to the other currency exchanges throughout the world, especially FOREX. Remember we need a reinstatement and a release of OFAC sanction to allow us to exchange our dinar. Incidentally the ISX (Iraqi Stock Exchange) is now experiencing rapid growth of about 25%. WOW!

Dinar Investor – Jeff   This news is red hot.  Article:   “The World Bank: Iraq is experiencing its worst crisis since 2003…We put a large financial portfolio for it – Urgent”   …The World Bank just came out this morning releasing an article screaming at us that Iraq is about to change the rate…the World Bank and the IMF are working with Iraq to bring forth the rate change.   It’s over and done.  All you’re waiting on is the fiscal year [March 2021]…this is red hot news!

MilitiaMan – Dinar Guru   …BUNA is to go live on the TENTH.. The CBI has a new digital system they launched. The CBI states they have approved the new exchange rates. Well the first one was done already, the next rate change is to yet come out. But the CBI states they have approved the exchange rates. The BUNA system by charter will not interconnect to a Non – Article 8 Compliant Currency i am being told. So, the next move is imo to be Article 8 compliant. If they hold to the time frame of the TENTH, then this next week is an interesting one IMO…

MilitiaMan – Dinar Guru  Article quote:  “The Central Bank of Iraq had previously signed an agreement with a number of local banks and completed the technical requirements to participate in the project in coordination with the Arab Monetary Fund,”  Get ready for digital currency…Digital currency will need to be able to communicate on a level playing field. It is said they have this next week to be interconnected with the BUNA system that the IMF has launched for clearing and settlements. They say the TENTH!!!

MilitiaMan – Dinar Guru  “Economic: Parliament cannot change oil prices and the dollar in the 2021 budget”  So they have it now set in stone. The Central Bank approved the new exchange rates and they are not to be challenged by the Parliament, as it is is out of their hands. The exchange rates are not to be amended…They were told by the IMF that they would change the rate in the then current fiscal year and they did it. They were also told by the IMF and the US FED that they could in the IMFs case change it again in early 2021 whereas, the FED just made it perfectly clear that countries can and do “Devalue and Revalue” their currencies.  [post 1 of 2]

Militiaman – Dinar Guru  Article:  “Al-Karawi: 5 files have not been resolved yet in the budget law”  Quote:  “All expectations indicate that the next week will be decisive…”  Next Week starts tomorrow. The data…suggests they have voted on many things. Much of it suggests they are going to be going to the private sector. Automation of Customs and Taxes link via the currency window of the CBI. The final nail is coming…imo.. [post 2 of 2]

Mountain Goat – Dinar Guru   Oh yeh, the budget has a new rate in it… It’s the new de-valued rate of 1450…Okay having said this they can still delete the zero making the rate $1.45 dinar to $1.00 dollar (inside Iraq). This could happen suddenly after they pass the budget.  I doubt it will but let’s explore it…the strategy of reducing the value of the dinar has cut their deficit in half. But what will happen to it when and if they raise the value of the dinar to $1.45? It will explode but can they handle this with proposed loans from the IMF? Time will tell what they do.

Kaperoni –  Floating would harm the economy right now…without exports and a private sector, the dinar would devalue. Until they pass laws, create a private sector and invite foreign investment and diversify Iraq will continue to struggle. Only Iraq can change it.  In the meantime, Sudan is preparing to float. …Article quotes:  “Sudan’s Acting Finance Minister said in an interview this week that the country will make a decision to float its currency when it has sufficient foreign reserves, and that it is also in talks with several parties to obtain loans and grants.”; “We in the government must commit to unifying the exchange rate, and the decision to float the currency will be taken after the provision of foreign reserves in the central bank, along with economic policies that regulate supply and demand,”…

Dinar Investor – Jeff   Article:   “Parliamentary Finance meets with official from the World Bank”  In the past they’ve never really had the World Bank and the IMF involved with budgets.   The reason they have the World Bank involved with this one is because this budget is now linked to the rate change.  It has reforms in it which the World Bank has financed.  Because they financed the reforms they need to monitor what happens in Iraq financially because they have a vested interest…payments  can only be paid back to the World Bank with internationally recognized currency.

MilitiaMan – Dinar Guru  Article:  “Sairoun: Raising Or Lowering The Exchange Rate Of The Currency Is The Exclusive Authority Of The Government”    The reducing the price of the local currency is not going to happen again. 1182 Didn’t work 1190 didn’t work nor will 1460 if left with out deleting the zeros from the exchange rate. imo

Kaperoni – Dinar Guru   …there is no intent to redenominate the dinar…First it would take parliament approval, and second their would be no reason to encourage exchange and settlement among middle east countries (Buna) and eventually the world if they were planning to redenominate (LOP) the dinar.  Not to mention, Iraq has had less than 3% inflation for the past 20 years. The plan for Iraq is like other middle east countries which is to diversify, create stability, employment and a private sector, foreign investment to improve the economy and create economic growth…only then the dinar can appreciate as a result. There has never been one indication that the IMF would support such an event, in fact they speak of allowing the currency to rise. Even the recent devaluation was not random, but an attempt to preserve the central banks reserves as well as meet compliance with the IMF. It is well documented…

Dinar Investor – Jeff   Article quote:  “the idea of raising the price of the dollar is an international policy shared by the Ministry of Finance, the Ministry of Planning and the Iraqi government, especially the International Monetary Fund.” …since they devalued the currency on December 20th the World Bank and the IMF have been putting a big emphasis on Iraq bringing forth this rate change, get the reforms going and improve Iraq’s economy…

MilitiaMan – Dinar Guru  Article:  “Advisor to the Prime Minister: Creating new electronic payment cards that will enhance the advancement of services provided to citizens”   DIGITAL MONEY!!! I seriously like to hear this. They told us about this… It is and was part of the plan of a level playing field. Get ready to be cashless than before. They told us there would be a smaller amount of currency in circulation. Well when they adjust the exchange rate accordingly they will need less cash. As it will be worth more…imo

MilititMan – Dinar Guru  Article:  “Al-Yasiri: The Central Bank’s initiatives have contributed to employing the unemployed and moving stalled projects”  Quote:  “the aim of changing the exchange rates is to support the Iraqi product in competition with imported products…He explained that “some sectors will respond immediately to this change…”  I would have to agree that the response will be immediately. They change the exchange rate and the markets respond in like kind. And in a big way. Contracts will require it!!! imo.. The news is off the charts good…the way they are talking today and yesterday. Comprehensive development process have been on going and we are now finally see the fruit of it all! imo

BGG –   …for the first time, maybe ever – they are actually using language that implies some tie of “raising the exchange rate” to the new budget?!?

BGG ~ Kinda’ odd how this was edited to look a certain way.

Here’s the full context – and I wasn’t downing anyone, just pointing out the irony of what we are seeing vs. what has been portrayed all along. JMHO.

MilitiaMan – Dinar Guru   Article:  “Parliamentary Finance expects: Approval of the 2021 budget within the next two days”  I cannot imagine, them not passing this week for a vote. They know there is to much at stake now. There is apparently no going back now… Way to much has been accomplished…imo.

Adam Montana – Dinar Guru     [Iraq is trying to defer payment of debt to Kuwait because of their current financial crisis.  What does this signify in regards to an RV?  If the deferment is granted, does this affect the timing?]  In regards to an RV, I say it signifies nothing.  Iraq has always tried to plead poverty and defer payments and anything else they can do – just like we would expect any other country to do.  The payments are in dollars, not Dinars… this means that after they RV, it will be easier for them to repay. In fact, it makes sense to stall payments until after the RV if possible, because they will effectively pay less that way. Or at least have more to pay with, but I don’t think their payment schedule will change for them. It’s just better for them all around that way.

Kaperoni – Dinar Guru  If we are to get excited about anything in Iraq of late read up on the Buna payment system. This will create demand and facilitate exchange in Middle East currencies. The end result could be growth of the Iraq economy and an increase in the exchange rate. Time will tell…

Adam Montana – Dinar Guru   [I truly believe the “HCL” will be done simultaneously with the Budget 2021 or immediately afterwards…Your thoughts?]  I’m mostly in agreement there! It certainly could be done simultaneously with the Budget, but that doesn’t mean it has to be done simultaneous…however, the timing certainly is good. I’m hopeful.