Dinar Observer Daily

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into effect January 1, 2027 they need to have the new currency in place and the old currency out of commission fully withdrawn and removed by that time.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.

Kaperoni – Dinar Guru   The central bank is strengthening its policies, proceeding forward with the digital transformation. Getting away from physical currency. Only with the success and growth of their own economy will the dinar then begin to rise gradually.  This is what the CBI is working towards.

Sandy Ingram – Dinar Guru  The currency of Venezuela is similar to what happened to us with Zimbabwe’s currency.  Lots of currency for sale…in the country of Venezuela is no longer used and is basically worthless.

Reset Intelligence – Dinar Guru   This week the world’s 20 largest economies agreed on the record that a currency priced below its fundamentals is not a fact of nature.  It is a fault produced by choices, harmful to everyone at the table and assigned to the IMF and the OECD to watch…When Treasury told Japan the yen sits below its fundamentals, the remedy on the table was not a
devaluation, it was up.  That is what restoring equilibrium means…The dinar has spent…decades priced by politics, war, sanctioned scaffolding, by books nobody could verify, by a shadow economy that needed the number low.  Every piece of that pricing is being dismantled in public and you have watched it happen...What was missing was the rule that says the gap itself is the problem.  As of this week that rule sits on the G20’s own letterhead.  The question is no longer whether anyone powerful wants a level playing field…The question is what happens to the most deliberately underpriced currency on the field when the whistle finally blows.

Clare – Dinar Guru  Article:  “US State Department: Iraq has begun a new path under al-Zaidi’s leadership, and we aspire to a strong partnership”  Quote:  “The US State Department confirmed on Tuesday that Iraq has begun a new path under the leadership of Prime Minister Ali al-Zaidi, in full cooperation with the United States.”

Stephen – Dinar Guru  I have many conversations with people in the dinar community every single day.  All of us are pretty much of the same opinion that Iraq is going to revalue their currency.  We might not agree on the rate.  Some people think it’s going to be a reinstatement of Iraq’s old rate… $3.22.  Some people argue it’s going to be a 1 to 1 revaluation where one Iraqi dinar equals one US dollar.  Some people argue for a lower revaluation, maybe 50 cents…Sometimes we don’t all agree on the same thing.  I like to form my conclusion based on the research, based on all the talk that I’m having with these gentlemen because they’re all very smart.  And then I like to come to my own decision…

Jeff – Dinar Guru   Question: “What’s the difference between a REER and a reinstatement?”  Jeff:  The REER is the real effective exchange rate.  That’s what the value of the exchange rate is.  The reinstatement is them taking it from where it devalued and reactivating it, reinstating it.

Mountain Goat – Dinar Guru   …all the news has been fantastic. All the great news over these last couple weeks is all about removing the zeros and how they intend to do it. The Finance Committee specifically said there is NO revaluation to the process.   This is not the Real Effective Exchange Rate (REER) which comes later when they move back to FOREX (reinstatement to trading platforms), put the dinar on a float and repeg it to an IMF basket of currencies. Everyone needs to know the difference. This process back to FOREX is a multi-step process…  the important part now is the timing of this event of removing the zeros.   WE now have many confirmations that they are going forward with it now. We know this Project to Remove the Zeros is close at hand and is going to be completed shor

Stephen – Dinar Guru  I have a hard time believing we are going to make it into 2027 without seeing this finally happen…Everything is converging on a very very accelerated timeline.  We are seeing things happen very very quickly…I truly believe we are in the very very final stages of seeing this finally come to fruition. 

Jeff – Dinar Guru   They’re not showing you the cabinet until they’re absolutely ready…They make is so difficult to know when they’re going to do it.  They don’t want you to know when it’s going to get done because the cabinet is the last final step that ushers in the rate change…The cabinet is being saved for the last and final step.

Reset Intelligence – Dinar Guru   There is a precedent for how this ends and it is right next door.  When Iraqi forces invaded Kuwait in 1990 they looted the currency and the world wrote the Kuwaiti dinar off as a casualty of war.  On the black market it fell to a nickel.  Then came liberation and the central bank of Kuwait pulled every old note, rolled out a brand new series and the only money that turned worthless was the paper the invaders had stolen.  Everyone holding the genuine notes walked into a bank, swapped old for new 1 for 1 and walked back out holding the most valuable currency on Earth.  The reset did not punish the people who held the Kuwaiti dinar through the worst of it.  It paid them. 

Militia Man – Dinar Guru  A redenomination, deleting the zeros, is a unit change.  It simplifies the currency, forces a note exchange and can help pull cash into formal channels…It does not by itself change the real purchasing power…If they were going to redenominate, they could have done this years and years ago… A REER, real effective exchange rate, style adjustment is different.   It is a coordinated managed realignment of the exchange rate by the CBI...It is a monetary policy decision…A coordinated rate adjustment is a deliberate structural move…Public discussion is correctly starting to separate them…the clarity is progress..

Clare – Dinar Guru   Article:   “Sources told Al-Mustaqilla that the plan to remove zeros from the Iraqi currency is entering advanced stages, with a plan to replace the currency in early 2027“  Quote:  “The discussions are currently focused on developing a clear implementation plan for the replacement process, the transitional period during which the two currencies will be traded…as well as the procedures related to bringing the largest possible amount of cash …into the formal financial system…If it is decided…then renaming…could make every thousand dinars of the old currency equivalent to one dinar of the new currency…The Iraqi public is waiting for any official announcement in the coming days that could move one of the most sensitive financial issues in the country from the stage of studies and discussions to the stage of decision and implementation.“

Sandy Ingram – Dinar Guru   The Central Bank of Iraq cannot control the economy of Iraq unless they have control over the bank notes…The Iraqi people have thus far refused to put their money into the bank…The Central Bank of Iraq cannot control currency that it doesn’t have control over…The Iraqis do not trust the banks because their money disappeared and they have not gotten over that.  I’m not sure you would either if that happened to you.  So they hoard and hid their money outside of the banking system.

Stephen – Dinar Guru  Question: “My bank i have 2 accts I had an appt with the wealth manager and he showed me on his computer that they don’t exchange Foreign currency… so your saying to wait and check when it values?”  Stephen:   Some branches might not verify currency on site, so you need to find out which branches do on site verification..

Jeff – Dinar Guru   Question: “Before the troops leave Iraq will we see a completed government and new rate or will we see it in October?” Jeff: I think there’s a very good chance everything is going to transpire before the troops leave by September 30th – rate, cabinet, all of that…Whether the troops are out by the 15th or the 30th doesn’t matter, the rate change date is already scheduled. 

Mountain Goat – Dinar Guru  I have to tell everyone that there are new events that lead us to strongly believe that there is once again a target of January 2027 for a reinstatement. This means they will have to remove the zeros in the later part of 2026 (the fall season) in preparation for this later event early next year to occur.  If you recall the significance of removing the zeros will set the stage for the reinstatement at much higher rate over the dollar. By removing the zeros in-country in itself will need a new rate of some sort (a revaluation) or these newer lower denominations will be almost worthless at 1/6 of a penny 1320 rate…

Clare – Dinar Guru   Article:  “The American newspaper The Media Line reports that Iraq is considering removing three zeros from the dinar, and the project’s procedures could begin in 2027.”  Quote: “In contrast, the Central Bank of Iraq confirmed that no decision has yet been made regarding printing a new Iraqi currency, explaining that any future move to restructure currency denominations or remove zeros requires going through several legal and regulatory stages before moving to implementation.”

Reset Intelligence – Dinar Guru   Iraq’s currency in circulation runs to roughly 113 trillion dinar, most of it outside the banks. People…look at the size of the imagined payout, and conclude the math cannot work. That objection assumes one treasury funds both lines. It does not. At home [in Iraq], the swap is housekeeping, funded locally, at equivalence, no premium involved…Abroad, the redemption settles off Iraqi soil…against collateral positioned for exactly that purpose…Baghdad’s oil account, its gold, and its reserves stay where they are…Iraq’s balance sheet is not the ceiling on your redemption, because the redemption never comes off Iraq’s balance sheet.

Jeff – Dinar Guru    They’re not going to just offer the brand new small notes and delete the zeros instantly.  They need to get educational information out to the citizens…To get that type of information out…they might need a period of time to do that.  For example, if they were to change the rate middle to early second half of September that could give them 10 to 15 days to publicly get all this information out, ‘Hey, you’re going to have 90 days to turn your old notes and get new small notes…‘   That way if they were to start deleting the zeros October 1st…the 90-day period would span from October 1st through the very end of December.  By the very end of this year, the old large 3-zero notes would be fully withdrawn and as of January 1st, when the new rate-change based budget goes into effect…the new notes would be completely in place.

Stephen – Dinar Guru  My timeline has always been between now and Christmas.  I will be surprised if we get out of 2026 and we do not have a rate change.  I will be quite shocked…I want Iraq to do this the right way.  I don’t want them to rush it and the rate lowers or they mess anything up...When you’ve been in this for so long, what’s another few months?  We’ve made it this far.

Samson – Dinar Guru  Article:  “IN NUMBERS … IRAQI OIL EXPORTS HAVE BEGUN TO RETURN TO THEIR NORMAL LEVELS“

Militia Man – Dinar Guru  The two pocket picture.  Think of Iraq’s money as two pockets.  Pocket one is dollars from oil.  Pocket two is dinar used to pay salaries.  The exchange rate is the door between those two pockets.  The CBI sets what $1.00 is worth in dinar.  If they print more dinars, [dinar] pocket two get bigger on paper [but each dinar is worth less dollars].  The door does not change…A rate adjustment changes the door.  If the dinar is reset stronger, each oil dollar that comes in and creates more dinars [maintaining the value]…A new rate only works if both pockets are being fixed at the same time…

Clare – Dinar Guru  Article: “Iraq Considers Currency Overhaul To Expose Looted Funds”   Quote:  “The Iraqi government is considering introducing a new currency that would remove three zeros from the dinar to simplify transactions and bring funds looted through corruption under government control…A source in the Iraqi Prime Minister’s office…told The Media Line, ‘The decision will be made in the coming period, and it is hoped that the procedures will begin during 2027.‘ ”

Reset Intelligence – Dinar Guru  The biggest mistake is comparing banks on the headline rate alone.  The rate is one number.  The package is the rate plus fees, on-boarding, plus what the institution does for you in the months after.  A higher headline rate with a punitive fee schedule routinely nets out worse than a lower rate with waived fees and clean on-boarding.  A private banking introduction can be worth more in the first 18 months than a marginal improvement on the rate.  Decide on the package.

Jeff – Dinar Guru    They can’t work on any of the old long-awaited stuff because they’re done.  They’ve gone as far as they can go right now…HCL, Article 140, pseudo ’26 budget, the ’27 budget, everything in Iraq is clearly waiting for the rate to change before they can move forward.

Stephen – Dinar Guru  This last week was one of the most revealing weeks that came out of Iraq as long as I could remember…This past Monday alone we had 15 articles specifically referring to deletion of the three zeros, redenomination.  We had multiple political forces talking about it.  Then on Wednesday the CBI comes out and denies it…no, we’re not moving forward yet, we’re going to wait, but the night before the CBI made that [announcement],  parliamentary finance member came out and said the denominations are already printed and ready to go.  They’re not even talking about designing them anymore, they’re printed and ready.  So, it’s a lot of conflicting information which is what you expect just before this being does take place…This thing we’ve been waiting for, for a long time is upon us…

Mountain Goat – Dinar Guru   Article quote:  “… removing zeros could be part of a “broader monetary and banking reform package that enhances confidence in the dinar and supports economic stability.  It is not a single, formal procedure.”  Here we see in this article…yet another confirmation that removing the zeros is just one step in the overall process, the overall plan is to get back to FOREX…the article tell us that removing the zeros is part of a broader plan “It is not a single, formal procedure”. What is this broader plan?  ...the next step in the plan after removing the zeros, is reinstating back to FOREX.  Their words today…Dr Shabibi’s words from 2011…