Dinar Observer Daily

Mountain Goat – Dinar Guru   Article:  “THEBAN EXCLUDES THE ARRIVAL OF THE 2020 BUDGET TO THE HOUSE OF REPRESENTATIVES AFTER EID AL FITR”    Eid Al-Fitr is on 24-25 May 2020 so we probably will not get a budget to parliament anytime sooner than that.  Among everything that is going on with shortages of funding I doubt it VERY MUCH that the finance committee will want to finance the Project to Delete the Zeros at this time in 2020. This is based on past experience with the finance committee. Remember too, the revaluing the Iraqi currency is not going to solve all their problems and certainly can cause more problems if not handled correctly.

Delta – Dinar Guru   Article:  “3 options top the measures to confront the economic crisis .. What is the story of private budgets?”  Quotes:   “There are measures that must be taken to face financial distress other than internal borrowing or prejudice the central bank’s reserves, noting that…among these options is a price change…Exchange and stopping imports, in addition to stopping the currency auction and other economic measures.”;  “...accelerate the transmission of the budget in a way that reduces the deficit by reducing costs or by changing the exchange rate.”   …ANOTHER BOMB ARTICLE…IMO…GET READY…PM SAID 48 HOURS…HALF IS GONE…

Dinar Investor – Jeff    Article “Parliamentary committee determine options to address financial distress“. Quote “…noting among these options is changing the exchange rate…and stopping the currency auctions…he called on the government to accelerate the transition of the budget in a way that reduces the deficit by reducing costs by changing the exchange rate…”  So there you go.  They said reducing cost by changing the exchange rate.  That means increasing purchasing power…they’re back to where they were…since they did finish the formation of the government talking about increasing their exchange rate, promoting investment, launching their private sector, implementing and launching the reforms…everything’s looking very good.  We’re patiently waiting…

Pimpy – Dinar Guru   …What’s going on?  Iraq to change the dinar rate???  We’ve been here before and they’re talking about it again…a lot of you already know about this chitter-chatter…  Article: “Parliamentary Committee determine options to address financial distress”.   Quote:  “...among these options is changing the exchange rate.”  I know you’re doing the pee-pee dance because I was doing it too when I saw this…here we go again.  Last March they talked about how they’re gonna change the rate and then all KaKa pee-pee broke out and it didn’t happen…this has been going on for a little while but it’s nice to see them talking about it.  We’ve all been feeling this weird vibe that something’s gonna happen this year.  We don’t want to jinx it so think positive…it’s gonna happen.  We know it’s going to happen.  [post 1 of 2]

Pimpy – Dinar Guru      We don’t know what rate it’s gonna  be… I still think the sweet spot is between $1.13 and a $1.34.  Don’t get me wrong I’ll take higher than that but it makes sense to me in order for Iraq to rebuild and be competitive a rate of around $1.34 makes way more sense…Let’s stay grounded.  We’re looking good.  I think we’re in a good position.  It looks like it’s finally gonna happen…Again first round of drinks on me – Vegas.   [post 2 of 2]

MilitiaMan – Dinar Guru   Article:  “Al-Kazemi plans to hold an expanded meeting to discuss the implications of the economic crisis”   Quote:  “…in the coming days for the purpose of issuing a package of economic reforms, foremost of which is bringing capital...”  They sure look like they are on the ROAD MAP to go international. Opening the doors to capital…

Mountain Goat – Dinar Guru   Last week was amazing for nothing but optimistic news about Iraq. As I said before that once the good government is in place and oil prices rise we are going to see Iraq take off.

MilitiaMan – Dinar Guru  Article: “The economic crisis” at the table of Al-Kazemi and the World Bank”  The World Bank and the IMF have been very vocal lately about immediate solutions and if there was a time to allow currencies into the SDR, the time is now as they put it. The last is based off their words last week real close. Iraq was the stage of some very important meetings and I suspect the members were asked if they were ready to facilitate Iraq into a social market economy. By the sounds of the way the USA and Iraq are mirroring each other financially and politically, shows we are in sync and the time has come to take Iraq in into the international world! Very powerful times we are in and witnessing! Here the…new PM again is hitting the ground running with the World Bank again… Wow…

Pimpy – Dinar Guru   Article:   “Trump to Al-Kazemi: Iraq is a strong and important country ready to support its economy“.  Wow…what are some of the ways Trump can help Al-Kazemi support its economy over there in Iraq?  Yep, you guys are thinking the same thing I am.  Change the rate…I’m telling you I’ve been doing the pee-pee dance a little bit on this.  It’s a lot of activity.  A lot of talk about the economy.  I think if Trump really wants to keep Iraq in his good graces as well as the American people he’ll just go ahead and change the rate.  This will kill three birds with one stone.  1.  It will kick-start the economy over here in the United States.  2.  It would kick start the economy around the world because so many people hold on to the Iraqi dinar.  3. It would help out the Iraqi people greatly…I like the fact there’s a lot of activity going on between Trump, Mike Pompeo, the UN as well as Iraq.  This is big…

Dinar News Update –  The Central Bank of Iraq’s website is down again this morning.  “Service Unavailable:  The server is temporarily unable to service your request due to maintenance downtime or capacity problems. Please try again later.” The CBI website has been up and down for maintenance every couple of days lately…this is not a normal pattern.

Pimpy – Dinar Guru   Article:   “Parliamentary Finance:  The budget will be semi-annual and will be allocated to 3″ Quote “the Parliament Finance Committee announced Sunday that the draft budget law will be semi-annual.”  Hmmm very very interesting.  If it’s semi-annual that’s once every six months and what do we know that’s coming up here in June?  We know that the United Nations, the IMF, the United States are coming in to meet with the new government.  I wonder what they’re gonna talk about?  Well we know what they are going to talk about – The security.  The protesters.  As well as the economy of Iraq.  Hopefully they’ll have some good news going into the second half of this  semi-annual report…

Pimpy – Dinar Guru  …all kinds of fun things are happening. One thing I can say about al-Kazemi…this guy is not playing around…he’s already snapping his government together and he’s still pushing for the remainder of the cabinet positions to be filled…I have a hunch these will be filled all within the next two weeks...I see a couple of deep articles that went on to say this guy is making a major push and he’s pushing out all the Iranian puppets…

MilitiaMan – Dinar Guru   Article quote:  “…the Prime Minister and the First Deputy Speaker of Parliament are quick to remedy the problem and it will be solved very soon and will not be prolonged until tomorrow, Sunday...”   …we can see the pressure mounting and if they are going to go digital and have the platform to do so ready behind the scenes we may be in for a very big surprise. The salaries need to get paid and the demonstrations suggest the heat is on and the heat is going to increase too! They suggest they payments will not be prolonged past or to tomorrow. If that is an indicator or not is sure looks like one!!

Mountain Goat – Dinar Guru   Article:  “THE IRAQI PARLIAMENT APPROVES THE AL-KAZEMI GOVERNMENT .. AND THIS FORMATION”   …now lets see what AL-Kazemi is really going to do now that he made so many promises. Will he work with the CBI in the project to delete the zeros? Will the citizens now get the reforms promised?

MilitiaMan – Dinar Guru  The new PM has a very serious and a professional back ground and some serious issues to tackle…The country has no liquidity and will need to implement the reforms to alleviate the lack of liquidity issue. IMO…we know this last weekend there were meetings at the highest levels to provide immediate solutions.  I believe that the PM was privy to those meetings and understands the totality of where they are in regard to the crisis. The tools and or solutions would have been discussed and options were probably on the table. The best ones were i’ll bet the ones we are looking forward too. That is the citizens get jobs, they get purchase power and we do as well…All things point to the Reforms getting in place now and very quickly from here on out…The pressure is now far too intense to not.…

Kaperoni – Dinar Guru   …Again economic and monetary policy are not random and require hard work. Iraq needs to create the conditions do invite investment and develop a market economy. There are no shortcuts.

Dinar Investor – Jeff  …For the entire month of May there is only one day that qualifies for the rate change to even be able to happen…large rate changes can only occur over a period time when all financial markets are closed around the world…that’s why Kuwait did there’s on early Sunday morning March 24th of ’91…Sunday is Iraq’s and Kuwait’s first business day of their weeks…Iraq will also have to have an in-country holiday to justify shutting and closing down their in country financial markets such as their ISX and their currency auctions.  For the month of May Iraq only has one weekend holiday period.  That happens to be Sunday May 24th.  If Iraq is going to change the rate in the month of May the only day they could do it on…would be Sunday May 24th...they said they’ll have the government done by May 23rd...everything is looking good.  Moving in the right direction…

MilitiaMan – Dinar Guru   Article quote:  “…the Prime Minister in consultation with the Minister of Finance may launch the exchange when liquidity is available”  Kinda looks like the Prime Minister and the Finance Minister had a chat about launching the, or an exchange when liquidity is available..  Well what liquidity are they talking about? They have no hard currency ($USD) nor will they apparently be getting any more any time soon, either. They know they will have liquidity once they inject the new currency to a live international level. A program rate is going no where! imo.  [post 1 of 2]

MilitiaMan – Dinar Guru  They know the secondary markets are the place to be in to defend oil price swings, currency, etc.. They know when they get fully Article 8 compliant with a new international rate, the SDR basket will or may at least have serious relevance… The Time is now.  They can not get to the level  they need to be or where it is even an option to do either of the two possibilities with out a strong international currency, imo.  No SDR or Secondary Market is on the table at a program rate. Neither one of them can happen with out them lifting the value of the IQD, imo. They had no, nor have now, any more options to put it off!! They are in a corner and the new PM knows it.  [post 2 of 2]

Dinar News Flash  Iraq has a new Prime Minister…(sorta)!  PM Al-Kazemi and 15 of his ministers given a vote of confidence.  This is fantastic news for the stability of Iraq and the dinar.  The very important Minister of Defense and Interior were included in the 15 passed ministers.  What was not included was the Minister of Justice and four other ministers.  It’s unclear if these other ministers are needed for the government to be considered “official”.  In the past all 20 ministers were needed to move forward.  Stay tuned for the significance of this accomplishment and what it means for the dinar.

Mountain Goat – Dinar Guru   Don’t worry what the exchange rate of the dinar is in Iraq.  …The CBI will limit the exchange rate in Iraq for reasons I will not get into today. We are ONLY concerned with the rate on FOREX and what we can negotiate with the banks. Most banks will just have a standard rate of exchange, take it or leave it. AS far as any contract rates we know that China did pre-purchase oil credits from the US and so these credits we have an opportunity to share in, if we so desire. The only way you will know for sure is to ASK when you sit down to exchange. If they can’t tell you or say they don’t know, then go to another bank.  Yes, there are going to be special so-called exchange centers, but be careful that you go to an actual exchange center and not some scam as there are going to be many of these scams at this time.

BGG ~ A couple of key points…

1) None of this is how the secondary currency markets work (here in the U.S.)…

2) There are NO SUCH THING as actual “Dinar exchange centers” – NO SUCH THING. Pure internet HOT AIR.

Dinar Investor – Jeff  …this is my opinion – the last remaining seven ministers most likely will not be needed or required for the rate change… Pompeo Tweet “…Great to speak with new Iraqi Prime Minister Mustafa al-Kadhimi. Now comes the urgent, hard work of implementing the reforms demanded by the Iraqi people. I pledged to help him deliver on his bold agenda for the sake of the Iraqi people.” …according to what Pompeo said here that the next move is the reforms which is the demands of the people.  That can’t happen without a rate change.  So based on this comment Iraq’s next move is the rate change…the news is going to go dark and quiet for the next few weeks…

Kaperoni – Dinar Guru  Many news outlets in Iraq confirming now. It is official, Kazemi is the new prime minister of Iraq along with 15 members of his cabinet. Five to seven more members will be voted on tomorrow.  The only thing that has been accomplished as a result of the Parliamentary vote today to confirm the Prime Minister and his cabinet is that it should bring a sense of stability to Iraq.  A news article surface today indicating Sadrs political bloc may have influence and control over who is the Central Bank of Iraq governor as a condition for voting for the new prime minister. We will have to see if that in fact is true but that may be significant.

Adam Montana – Dinar Guru    DJIA, S&P, GOLD, pretty much everything is up, including OIL…and that is music to our ears!  Over in Iraq, we have a “still waters run deep” situation… do you remember all the ruckus that was in the news during the short durations of the previous Prime Ministers? I’m not hearing the same level of noise right now.  Al-Kazemi, the current figurehead for the position, seems to just be on cruise control. He’s zooming down the political highway and there doesn’t seem to be much getting in his way. Of course there is talk of disruption, but what’s not being publicized is the actual progress – and there is plenty! …Things are actually really good! In spite of my current optimism, we are at a critical point – things may turn in our favor quickly, and if they are going to turn right now… it is going to happen quickly, probably in the middle of our night, and without warning. They aren’t going to give us too much of a head start, so we wait patiently and vigilantly…

Dinar Investor – Jeff  …they are not going to vote on the formation of the government until 9pm tonight…right now it’s about 4:05 pm in the country of Iraq.  We have roughly another 5 more hours to go…

(They passed the new GOI tonite)

Mountain Goat – Dinar Guru   …So the prospects of an RV sooner than later are good. …I want everyone to know I do not mean that as soon at the government is announced they are going to RV... What do we see now that is different than last week: 1)  Iraq should form their government this week, This should bring a sense of stability and security;  2)  Iranian influence is at an all time low…This is mandated prior to any reinstatement;  3)  Al-Kazimi promises to open up the corruption files meaning they could actually finally go after Nori al-Maliki and his gang of thugs… 4)  Iraq has finally managed to cut off funding to Iran via the currency auctions…through sourcing dollars now only via electronic means. This allows transparency and audits of exactly where all the money is going. So they are now abiding by US sanctions on Iran;  [post 1 of 3]

Mountain Goat – Dinar Guru   5)  Oil is on the rise, clocking in today [Tuesday] at about $30 a barrel and the day is not yet over; 6)  China wants desperately to get their stronghold inside Iraq and invest with their billions of Chinese funds and get their guaranteed oil. They want to do this in 2020 not years down the road; 7)  Corona virus is at a decline in Iraq, as they shut down the borders with Iran and are keeping them shut, for now. 8)  The CBI is already geared up to replace the larger notes with the smaller denominations. This project is huge and is the “project to delete the zeros”…this…will lead us to the reinstatement on FOREX as the global rate. We are NOT going to be allowed to exchange our dinar at the banks unless two things happen: a) the IQD is reinstated back on FOREX and b) Sanctions are lifted on the currency (probably will happen at the same time);…  [post 2 of 3]

Mountain Goat – Dinar Guru   So sooner than later may mean Jan 2021 or by some miracle we might see something this summer even. …remember there is NEVER going to be an ideal time or perfect time when Iraq is going to be a model country. …It seems for now that the finance committee and the CBI are on the same page for this to occur.  …For Iraq to go anywhere on the global marketplace it must have a globally recognized currency. I don’t even care what rate they initially come out as…Just get the damned rate back on FOREX and let the free market take it from there. [post 3 of 3]

Kaperoni – Dinar Guru  Iran apparently decided to delete 4 zeros today and introduce the Toman as the new currency.  This took parliament approval and is a LOP.  Very similar to what has been discussed with Iraq.  This is not a RV/RI but a neutral event.  We do not want to see Iraq do this…In fact, we have seen several articles in Iraq talk about parliamentary approval. Therefore, we know that is what the CBI is also considering. Parliamentary approval is not needed for traditional monetary policy.

Mountain Goat – Dinar Guru   …the news was all over the place as Iraq tried to pin down a date to vote on the new Al-Kazimi government line-up. So right now as it stands they did not yet take a vote in parliament and it will come down to…very close to the deadline day of May 7th. So we hear today they plan to vote on Wednesday. Article quote:  “The Presidency of the House of Representatives decided to hold a voting session on the ministerial program and the government cabinet on Wednesday, 6/5/2020 at nine in the evening.” Let’s see if they actually do it. Finally…