Dinar Observer Daily

Clare – Dinar Guru  Article: “Iraq’s financial revenues exceed 77 trillion dinars in 7 months of 2024″ Quote: “The Ministry of Finance revealed on Tuesday that the size of Iraqi revenues in the federal budget during 7 months exceeded 77 trillion dinars, confirming that the oil contribution to the budget remains around 89%.“

Militia Man   “…Understanding between the Iraq Federal Government and the Kurdistan Regional Government…”  You have two entities coming together…They had a lot of turmoil in the past…  Now they’ve come to an agreement…A huge delegation from Iraq has gone to the Kurdistan region – The highest executive authorities in Iraq, the Ministerial Council of Economics…Planning, Trade, Interior, Central Bank of Iraq, legal…finance, oil department.  The whole list was immense…with their counterparts from the Kurdistan region…working it out, which reeks of national reconciliation…If they get National Reconciliation I can see Iraq is going to go so far.  It’s phenomenal…Reconciliation is historic.

Mountain Goat – Dinar Guru   …recently they have told us this electronic platform is going away at the end of 2024… corruption and money laundering is now all ending and has to end or we will not see any reinstatement. The instrument to do this is the Electronic Banking practices… Having the US Treasury inside of Iraq now helping with all these banking reforms is a VERY good thing not a negative issue. It is absolutely going to push the RV process for us…We might even say it is the LAST piece to put in place in the RV puzzle to clearly see the end to this RV saga.

Samson – Dinar Guru  “Parliamentary Finance Committee reveals its efforts to increase non-oil revenues and activate collection“

Clare – Dinar Guru  Article: “Central Bank of Iraq announces comprehensive banking reform map” Quote: “After the Central Bank delegation returned from the last round of negotiations with the US Treasury and the US Federal Reserve, it revealed the roadmap for radical and comprehensive banking reform…The Central Bank’s plan until the end of the year will reach 100%, with foreign transfers between Iraqi banks and correspondent banks, without going through the US Federal Reserve.“

Pimpy – Dinar Guru  Article:  “The parallel market will be overturned.  Sources: Upcoming decisions from he central bank that will confuse the markets and raise exchange rate.”  It’s interesting they don’t say which exchange rate…  Quote:  “He stated the decisions are likely to raise the dollar exchange rate in the parallel market…”  When they say raise the dollar exchange rate, that’s not good for us.  That means the dollar is rising up against the dinar…On the black market people are getting 1505 dinars for every $1.00… which is much higher than the 1320 for every dollar, the official exchange rate…It’s getting out of whack again.  As it gets harder and harder to get the US dollar, you’re going to see the black market really start to increase.  I’m curious to see what kind of decisions the central bank is going to make…

Militia Man – Dinar Guru  Article:  “The Parallel Market will be upended”  Quote:  “Expected decision from the central bank will confuse markets and raise exchange rates…These decisions will lead to an increase in the dollar exchange rate”  When you’re talking about the parallel market you’re talking about a black market…an illegal market, that’s subverting the platforms to get the dollar.  That’s coming to an end…They’re saying, parallel market…you’re going to have a problem.  If you don’t fix it you’re going to get hurt [If you’re holding dollars and not dinar].  They’re giving them [Iraqi citizens using the black markets] numerous warnings [to get out of the dollar].

Samson – Dinar Guru  Article: “Five Oil and Gas Laws in Parliament”

Clare – Dinar Guru   Article:  “The parallel market will be upended.. Sources: Expected decisions from the Central Bank will confuse markets and raise exchange rates Urgent“   Quote: “The Central Bank will issue new decisions regarding foreign currency prices and the method of trading them within Iraq…The aim of these decisions is to limit currency smuggling or its monopoly by the weak-willed.”

Kaperoni – Dinar Guru  Article: “Al-Sudani’s advisor reveals the results of the discussions between the Central Bank of Iraq and the US Federal Reserve”  Community Comment:  “Hopefully 1 step closer to the long awaiting financial reforms”  These steps are all good.  And for Iraq to ever raise the value,  they need these reforms along with diversifying their economy.

Pimpy – Dinar Guru  Article:  “Inflation in Iraq slightly increased in July”  Article quote:  “Inflation in Iraq reached approximately 3.7% in August of 2023 compared to 4.4% in August of 2022 despite the rise in inflation in Iraq’s neighboring countries.”  In other words Iraq has done a great job keeping inflation down…That’s what it is we’re looking for.

Clare – Dinar Guru   Article:  “Prime Minister’s Advisor: Central Bank Decisions Contribute to Reducing Inflation Rates in the Country”   Quote: “The financial advisor to the Prime Minister, Mazhar Mohammed Saleh, explained that the decisions of the Central Bank contribute to reducing inflation rates in the country, and pointed out that economic growth contributes to strengthening the value of the local currency“

Militia Man – Dinar Guru   Why is Saleh, the Financial Advisor, talking so much about ‘enhancing the value of the local currency’?  Isn’t that what we’re waiting for?  Article quote: “…Central Bank’s policies play a major role in the stability of the currency which achieves harmony between the internal value of the currency and the external value…he added a booming and sustainable economic growth in GDP contributes to enhancing the value and stability of the currency…”  Saleh is openly talking about the value of their local currency, internal/external value, reducing inflation, stability of the value of the currency, strength of the national currency, enhancing the value of the currency.  It’s off the charts.  They talk about being historic, with language like that, I’m looking forward to something that’s going to historic.

Mountain Goat – Dinar Guru  I was…told Wednesday in my conversation with my CBI contact that Baghdad now has installed the huge TV screens…They also told me that they are getting ready to broadcast the swap out of the currency video…they do not expect to conduct the swap out until late this year, after the US elections and my information tells me that January is most appropriate.

Clare – Dinar Guru   Article:  “Passing the investment law within two weeks.. What are the positives?“

Samson – Dinar Guru  Article: “100% complete.. A government advisor announces the completion of the development road designs“

Militia Man – Dinar Guru  It takes time to get things done.  Now we’re watching all of these things come together at the end.  I think Iraq has made significant adjustments to what they’ve been doing.  I think their non-oil revenue streams is going to bring value to their country…Iraq…glory days was based off of just oil…Iraq has a lot more than just oil…Liquid natural gas, that’s a massive amount of income.  They used to burn it and flare it and just waste it.  Now they’re going to produce it and ship it, likely to Europe…They’re going to bottle that gas and sell it…They’re not only going to increase their oil but they’re going to increase their non-oil revenue streams.  That’s where all the ability to be able to support the value of their currency…

Clare – Dinar Guru   Article:  “Zaha Hadid Architects Unveils Construction Progress of Central Bank of Iraq Skyscraper in Baghdad”  Quote: “The Central Bank of Iraq (CBI) headquarters…is a new landmark on the banks of the Tigris River in Baghdad. Now the tallest building in the city, the 170-meter-tall skyscraper aims to echo the values of the institution: solidity, stability, and sustainability.“

Samson – Dinar Guru  Article:  “Trump Family Cryptocurrency Project Promises to ‘Ensure US Dollar Dominance‘”

Mountain Goat – Dinar Guru   I had an interesting conversation with my CBI contact.  It was confirmed that they are moving toward a January 2025 reinstatement. I know none of us like to hear this… We all know they planned for a late summer reinstatement, but that plan failed and the US Treasury finally stepped in to help out… Now we move on to a new chapter and another attempt at it.

Pimpy – Dinar Guru    No, there is no ‘in-country’ ‘out-country’.    It’s the same everywhere.

Militia Man – Dinar Guru   Article:  “The Central Bank of Iraq reveals the mechanism for ending the electronic platform”  Quote:  “During the year 2024 and until now, 95% of the transfer process from the electronic platform to the correspondent banking mechanism directly between it and Iraqi banks has been achieved, which means that only about 5% of it remains…which will be transferred…before the end of this year…”   We should all be very clear about what is transpiring before our eyes with Iraq’s reforms…We are seeing the end results with a mere 5% left to complete…So they already achieved what they were working on in the past. They are ready for completion to the best of my understanding now. Not later. Wow!

Sandy Ingram – Dinar Guru   [I’m] more concerned than ever that Iraq will take action to reduce the circulation of the Iraqi dinar to a manageable size which will automatically help increase the currency’s value.  The question then becomes will outside investors be included in the exchange?  Update your passports for travel to Jordan, Turkey or Egypt where Iraq now has banks…

Clare – Dinar Guru  Article:  “Government Advisor: The talks between the Central Bank of Iraq and the US Federal Reserve achieved advanced results”  Quote:  “Salih, confirmed…the renewed understanding with the US Federal Reserve will allow the monetary authority to restore an internal banking market, while he indicated that the results of the discussions between the Central Bank and the Federal Reserve are good and consistent with the rules of work, and he pointed out that they will allow for the implementation of a precise path between Iraqi and international banks“

Pimpy – Dinar Guru  A few days ago an article come out, “Two conditions for achieving it. Sudanese adviser rules out removing 3 zeros from the coin”  My fingers were crossed and I was hoping they would not remove the zeros…That’s step one, don’t remove the zeros.  Now, do we want the exchange rate to change?  Yeah.  Now is the time while the zeros are still on there.  I’m not saying that’s going to happen but what I’m saying is if it was ever going to happen the way we wanted it to, now is the time.

Samson – Dinar Guru   Article:   “The Central Bank of Iraq reveals the mechanism for ending the electronic platform“

Militia Man – Dinar Guru  Article quote: “All the currencies Iraq will be doing business with are now in compliance with the international standards and traded on the Forex…”   With respect to that, I think it’s time for everybody to sit back, relax, watch it as it happens…We’re all excited.  Maintain some groundedness because I believe there’s no stopping this at this stage of the game.  They have so much they’re telling us…It’s truly amazing..

Mountain Goat – Dinar Guru  …One of the loose ends is the much-needed amendments to the Iraq Investment Law. They told us in an article that the WTO requested some changes to the law. In this same article, they told that this was the ONLY issue holding Iraq back from full accession… So, what pops out in the recent news. The article is titled “PARLIAMENTARY ECONOMY COMMITTEE DISCUSSES AMENDING THE “INVESTMENT LAW”. The Iraqi legislative arena is currently witnessing intensive discussions about the fourth amendment to Investment Law No. 13 of 2006, as amended, in light of the significant expansion of investment activity in the country in recent years. So we may see this law very soon. Then the WTO.

Clare – Dinar Guru   Article:  “Economist talks about new measures after stopping transfers”  Quote:  “the Governor of the Central Bank of Iraq, Ali Al-Alaq, in New York over three days with US Treasury officials gave a new boost and confidence to the Iraqi banking system…The Central Bank of Iraq will stop dealings with foreign correspondent banks in the future and reduce reliance on them, after developing the Iraqi banking relations network…and gradually ending work on the electronic platform for transfers and replacing it with direct banking relations between Iraqi banks and the network of international correspondent banks.”

Militia Man – Dinar Guru  Article:  “Away from the grey list”  Article quote:  “Due to the spread of this phenomenon means the Iraqi business environment has become compliant with international standards.”  They’re ready to be Article VIII compliant…To be in compliance you’re going to have to have an exchange rate…1310 isn’t one of them… This reeks of Article VIII compliance with the IMF, knocking on the door.  I think that is powerful.