Dinar Observer Daily

RVAlready – Dinar Guru  Time to finish the RV. I’m sure the rate has been set by now. Just waiting for CBI to announce. Ready for the number!!!

Kaperoni – Dinar Guru  The Buna payment system which is part of the Arab Monetary Fund announced a few months ago that the Iraqi dinar would be joining the program. Today, they announced a relationship with JP Morgan Bank for settlements in US dollars. This is significant news.

Petra – Dinar Guru  Article:  “Finally, the 2021 budget is ready for approval in Parliament”   Quote:  “the Parliamentary Finance Committee will, next week, distribute copies of the revised draft of the Maronite law to the heads of political blocs 24 hours before the date of the voting session on the budget law.” The source pointed out that “next Monday is the day set for resuming parliamentary sessions and voting on the budget law.”  So, IMO, BIS requires at least 24 hours notice prior to any formal rate change within all CB’s around the world. They, in turn, relay that information back to all the CB’s globally.  Now, if you read what I just posted the final “draft” will be sent…24 hours prior to the vote. Interesting timing. This may be something, maybe nothing, but it sure falls in line with rate before budget. They are to vote on Monday as Tuesday is their “last day of session!” So, timing is sure unique and allows the ledger to reflect the rate change retroactively back to Jan 1. Again, IMO.

Dinar Investor – Jeff   Article: “Shocking parliamentary warning: The dollar may rise to 500 thousand dinar”  …this is not even from the Central Bank…this article is pure trash…Anytime financial information is put out in the news if it’s not from the Central Bank I would be very careful trusting it.  Be careful trusting only one single article…  Article:   “Parliament intends to reduce the dollar exchange rate in the budget“.   Here’s what they’re really going to do…they have to.  Their inflation is rising and they have to bring it down.

Adam Montana – Dinar Guru   [Do you think Iraq will go to a digital currency?  And Do you feel it will happen at the same time, before or after the rv?]  Eventually, yes. After.  The timing for an RV is good now. The timing, technology, etc for converting to digital isn’t quite there at the moment.

Dinar Investor – Jeff   They’ll have the budget done by mid-February.  That’s all that matters.  The exact timing of this has nothing to do with the rate change.  Even if they complete the budget in a week or two it has nothing to do with the timing of the rate change.  The rate change will have everything to do with the timing of their fiscal year…Iraq is walking in Kuwaits footsteps…Don’t forget Iraq kind of already gave you the rate change date  – when they devalued the currency on December 20th.  That was a 90-day tool for the rate change…to reduce the dinar note count and get more 3 zero notes out of circulation within the country of Iraq…you guys are in the best spot you’ve ever been in.  We’re looking really good…

Adam Montana – Dinar Guru   [Will the cancelling of the Keystone XL increase demand for IRAQI oil and thereby the PPB?  Could this be a Precursor to an RV?]   That’s a great observation, and I think it’s 100% in Iraq’s favor! Anything that drives the price of oil up, and does not take away from Iraq’s ability to produce and export their own product, is good for Iraq. This is one such example.

MilitiaMan – Dinar Guru   Article:  “International Monetary Receives an “emergency request” from Iraq”  Yep… They are not going to do that for a program rate… More to the story and the story is economic success, hence, the support from the IMF… There is give and take and Iraq is ready to give now.. imo..

Mountain Goat – Dinar Guru   …If the reinstatement was going to happen, we would have seen an education period followed by the project to delete the zeros in December followed by the reinstatement in January. This is the process and each step takes time. Is there still a chance to see the reinstatement any time soon? As long as the 2021 budget is not yet opened there is a slight chance, a very slight chance, it can still happen. This is only from a technical standpoint not a practical standpoint. There is a difference.

Pimpy – Dinar Guru  Article: “Another Arab county joins the club of normalization with Israel”  This is very very dangerous for Iran…it’s gonna make it very hard for Iran to bully these people around…This is a continuation of what Trump started…this is good.  It really is…these people are all in the Middle East and we need peace in the Middle East…

Adam Montana – Dinar Guru      [How’s the impact of the latest suicide bombing and the affect of biden if any?]  Although both are tragic and unfortunate, I see no impact from either of those.

MilitiaMan – Dinar Guru    Article:  “Al-Halbousi and the Emir of Kuwait discuss activating the joint governmental and parliamentary committees between the two countries”   This is about tens of billions of dollars for re construction. Clearing and Settling payments goes hand and hand with this. If we cannot see what is at play by now, one may never get it.. Wow! This is good… imo!

Adam Montana – Dinar Guru   Article:  “Representative Energy: We have dealt with the oil and gas law disputes and will vote on it soon”   HCL is such a key component right now. In fact, 98% of this RV hinges on when and how the HCL is finally completed…and with things like that coming out, you know we aren’t far now! 

MilitiaMan – Dinar Guru  Article:  “The International Development Bank announces its joining the “Bani” platform”   Quote: “work is underway to introduce the Iraqi dinar currency on this platform soon to encourage the use of Arab currencies in financial and investment transactions in accordance with international standards…”    When using terms lately like being forced to do things for a purpose like we saw with the IMF aligning the IQD with the SDR Basket imo, here is one were they are telling us they are unremitting in their efforts to get settling and clearing payments with in the AMF, region and abroad. Looks like it is signed and now about ready to go live. Wow!  imo.

Petra – Dinar Guru   …when they made that move [devaluing the currency] the clock started.  And that clock is ticking down fast.  Because they can’t stay at that rate much longer.  That’s the biggest key to me.  They’ve got to drive the truck home.  The train has got to arrive in the station.  Whichever analogy you choose to use.  They can’t stay at that rate much longer because it’s gonna effect their people and their entire economy.  We know the white papers don’t work without it.  Nothing works without it…if folks don’t see it they’re blind…if there’s an end game we’re at the final piece of it…

Mountain Goat – Dinar Guru  …if you are under the impression (or assumption) that passing the 2021 budget is going to get you some RV…There is no new RV rate in the budget.

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

MilitiaMan – Dinar Guru  Article quote:  “Baghdad will be able to apply for a quick loan of two billion dollars through a special mechanism in the IMF dedicated to supporting the economies of countries.”   Iraq didn’t get loans in the recent past from the IMF in the manner in which they speak now… That is because they were not ready yet. Now they apparently are ready to go international., as the IMF and others are working in tandem and have precautionary measures in place to make the transition smoother along the way.. IMO.

MilitiaMan – Dinar Guru  Article:  “Ministry of Commerce: the middle of next month, the date for the application of the electronic payment system”    The push is on imo… They don’t have much time between now and the mid month January time frame they give…to implement the electronic payment system. The minister of Trade had obstacles to overcome and it appears the obstacles have been overcome now.  The electronic payments should be from my understanding be done with a new digital dinar.  There words not mine.   [post 1 of 2]

Adam Montana – Dinar Guru  Iraq just changed the rate. Granted, it was the wrong way… but they are already talking about changing it again. You don’t need me to tell you where this is headed. Hang tight, friends!

Mountain Goat – Dinar Guru   Article:  “BAGHDAD’S CURRENCY DEVALUATION LIFTS LID ON IRAN’S EXPLOITATION OF IRAQI RESOURCES”   Here it is in black and white…I quote from the article: “The DECISION TO DEVALUE THE IRAQI DINAR AGAINST THE US DOLLAR HAS HAD POLITICAL AND STRATEGIC IMPLICATIONS FOR IRAN AND ITS MILITIAS IN IRAQ AND THE REGION”. …they are killing 2 birds with one stone. …they are accomplishing multiple objectives with the devaluation. It is a powerful & strategic move. It means it is not about a falling economy and a country about to go broke, but rather a means to a bigger end.

Adam Montana – Dinar Guru   HCL talks, agreements between Kurds and Baghdad, increasingly rapid progress – all happening right in front of us. I’m…excited to see what’s next.   GO RRRVVV!$!$!$!$!

Mountain Goat – Dinar Guru   Remember from previous years we are not yet dead on the idea that a reinstatement could happen in the first quarter until they open the budget without it happening…Let’s watch for the 2021 Iraqi budget passing and see what happens then. Also, we know this devaluation is costing jobs in Iraq and so it is counterproductive as to what they say they want to do – create more jobs and build up the economy. So, this tells us this devaluation is short-lived. Better things are coming for Iraq.

Pimpy – Dinar Guru    they’re already talking about the rate change again.  Will it happen?  I don’t know.  It’s only talk…The World Bank wanted to increase the number of dinars per dollar and the Iraq central bank said no.  They want to go in the opposite direction.  They want to decrease the number of dinars you get for every dollar.  So the World Bank wants to devalue the dinar more.  The Central Bank…they want to increase the value of the dinar...I thought this change would be really quick, very temporary just so they can get the salaries paid.  Get back on track and then go right back to changing the rate in the right direction.  So that’s what looks like is happening fairly quickly.  At least it’s being discussed…this is a good thing.  A very good thing.

Mountain Goat – Dinar Guru  Article:  “THE DEVALUATION OF THE DINAR IS THE BEGINNING .. “PAINFUL” STEPS AND A DIFFICULT YEAR FOR THE IRAQIS”   Yes, the devaluation is a necessary “painful step” . Like I said it is a step in the process and is being used as a means to an end.

Breitling – Dinar Guru   It’s a policy based investment.  If you’re watching the local markets in Iraq and trying to figure out where the value is coming from you’re never gonna get it because that’s not how they think in Iraq.  That’s not the way they think in parliament, Ministry of Finance, Ministry of Planning or the CBI.  That’s not what they’re thinking.  They’re thinking how do we keep the budget going with the U.S. dollar and at the same time how do we participate in other markets so we’re diversified and we’re not stuck in just the energy markets.  They know the energy is going to go down period.  Everybody knows this.  Everybody is trying to get into different markets.  Iraq is no different…they need to add value to their currency…

Adam Montana – Dinar Guru   We don’t have an RV yet, but it isn’t hard to see this coming quickly.  Rate change – done, overnight. A flick of the switch, and …the rate changed. It will happen just as suddenly when they shock the world with a quick move the other way.

Pimpy – Dinar Guru   Article “After the central bank was hit by a surprise… Iraq may move to change the dollar exchange rate“.  But this time in the right direction!  Not the other way around.  We’re talking about increasing the value of the dinar against the U.S. dollar.  You’ll see different articles conflicting with one another that’s why you can’t get too excited with good news and get too bummed out with bad news.  Quote “as soon as the devaluation of the dinar against foreign currency especially the US dollar came into effect the peoples willingness to buy those currencies decreased which created an alarm for the Central Bank of Iraq .”  If they’re going to increase it, this might be a good time…when you see the number of dinars decrease for every $1 that’s what we want.  That’s good.  That’s what we want to see.

MilitiaMan – Dinar Guru  They are now telling us…that they are de dollarizing and will be heading to use digital dollars in the future for tracking…Transparency. …Well if we look at the Auctions lately and even today, proves they show us a massive change of late and that supports scarcity is upon Iraq now for the USD. imo. A necessity of the IMF on Iraq …They will need to cease the use of the USD as we know it. The future will be very different and it will curb corruption.. So, be patient and hopeful as there is no need to be worried or upset for that the devalue sets the stage for a revalue.. imo…

Pimpy – Dinar Guru  Article: “Parliamentary Finance: This is the date for the budget debate session”  According to the constitution the cabinet members look at a budget.  They pass the budget and then it goes to the House of Representative where technically they’re supposed to be some type of 90-day thing and you’re supposed to have 3 readings in there so any changes gets done.  But it seems to me that that part of it’s being bypassed…They want to try to get this passed before the end of the year.  That’s not many more days…we’ll see if this gets accomplished.

Adam Montana – Dinar Guru    Article quote:  “The legislative procedures to complete the federal budget law may take from 20-30 days, and that the council will begin the first reading of the draft law early next January.”   2021 Budget.   20-30 days – this means January for completion (probability: good, for once!)