Dinar Observer Daily

Reset Intelligence – Dinar Guru  Forget the naysayers. Here’s one line to hold whenever the fear comes back.  Iraq is not rebuilding its books, its banks, its borders and its budget to make the dinar worth LESS. Every piece of this process exists to raise purchasing power.  The design points one way.  And that is UP.

Jeff – Dinar Guru   Inflation [in Iraq] has gone clear down to averaging almost 3%.  That’s the reason why they’re now able to bring forward the rate change and the step of removing the 3-zeros. 

Stephen – Dinar Guru  The Iraqi dinar I believe is going to be one of the first dominoes to fall.  It’s going to give us the liquidity and resources to invest and 1000X, 5,000X, 10,000X our initial investment from the Iraq dinar.  That’s why I don’t care if it revalues at 10 cents or 25 cents.  I know I’m going to be able to reinvest those proceeds into other assets that’s going to explode from there.  

Kaperoni – Dinar Guru   There are many keys…going on in Iraq.  #1 they are constantly talking about diversifying their economy away from oil…#2 they are constantly talking about upgrading their banking system to digital. Removing the physical currency. #3 they want to integrate their banking system within the global financial system. #4 they want to encourage significant  investment in Iraq. These are all things that countries do when they’re Emerging Market trying to develop and establish themselves.  An RV is not part of that, stability, sustained economic growth and diversification is. What Iraq will do is allow the currency to rise gradually once they convert to full digital, allowing them to reduce the money supply…There is no shortcuts.

Pimpy – Dinar Guru  There are people who stole from the Iraqi government, millions and millions of dollars [worth of dinar].  So what happens when they redenominate? You have to bring in your currency and exchange it for the new ones.  And what happens to the criminals who have all that money?  How are you going to explain how you got so many Iraqi dinar?  How are you going to make the exchange from the old Iraqi dinars to the new Iraqi dinars?  That’s one way to catch these criminals…That’s a way for them to gain a lot of strength in the Iraqi dinar…For those criminals that have the old dinars you need to find a way to exchange them because if you don’t…after a while those bills become obsolete…That’s what going to happen to the old dinar.

Reset Intelligence – Dinar Guru  A country [Iraq] that just ordered 7.5 billion new notes has stopped dispensing the old ones…Here’s how an exchange actually works…   An exchange works by making the old paper unusable and the new paper worth walking in for.  The state controls the first half with deadlines and rationing.  You’re watching that half run now – [atm] machines capped, [payment] trucks stopped, salaries rerouted [to electronic rails].  The second half arrives as a single announcement.  Between the two halves sits nothing but silence from the [central] bank.  That silence is what this week sounds like.  

Jeff – Dinar Guru   Once they become sovereign it’s go time…But to become sovereign they have to pay the US back through the means and aspects of revaluing or increasing the value of their currency.  What has to happen is the reinstatement.

Stephen – Dinar Guru  The cash crisis in Iraq is a very real thing…and it’s a very big deal...It has always been debated, what events are we going to see just before the revaluation takes place.  Are all the dealers going to stop selling dinar?  Is there going to be a struggle to purchase dinar anymore?  Are we going to see a cash crunch in the country of Iraq?  We are seeing a lot of things play out…I have two people in Iraq I stay in touch with…One of those connections did confirm…that getting dinar is very very hard from ATMs, from banks, as if everything is drying up.  I’m still waiting on one confirmation back…The central bank is confirming there is a cash and liquidity crisis happening in real time…

Mountain Goat – Dinar Guru   Article:  “A CRISIS OF CONFIDENCE AND A CASH ECONOMY: AROUND 97 TRILLION IRAQI DINARS ARE OUTSIDE THE BANKING SYSTEM”  …another article…reinforcing the problem once again and thus why they need to remove the zeros in the first place and most importantly do it sooner than later…this is pure pressure, pressure and more pressure on the government to do something and do it much sooner than later.  

Jeff – Dinar Guru    Your receipts and certificates of authenticity are for your taxes, not for banks.  Banks do not give a crap about your receipts when you go to exchange.  For example, if you went to Europe and came back with euros, are you going to have to show certificates of authenticity and receipts to exchange?  No. The bank doesn’t give a hoot about that.  The bank doesn’t administer your taxes for you. 

Reset Intelligence – Dinar Guru  The Central Bank of Iraq published two documents on Wednesday. One went to the public: a formal statement… denying that any new currency has been printed. Its companion went to every licensed bank and financial institution in Iraq…It instructs every counter in the country on how to treat the money of politically exposed persons. That means officials, their families out to the second degree, and the associates whose wealth a government salary cannot explain. One release manages what you believe. The other changes what a bank teller in Baghdad is required to do…Underneath it all sits…102 trillion dinars held beyond the reach of any bank, which all of this is built to bring in.

 Stephen – Dinar Guru  The CBI finally addressed all the commotion we have been seeing in regards to the deletion of the three zeros.  CBI Statement “Reports that the bank has already printed quantities of new zero deleted currency for circulation does not rely on an official source and explicitly denies that it has printed a new Iraqi currency with the zeros deleted.”  They are denying all the reports.  They’re saying no currency has been printed…I fully expected the CBI to deny this…I believe this is already completed and everything we are seeing in the news is informing Iraqi citizens of what is getting ready to take place…All of this is happening very very quickly. 

Mountain Goat – Dinar Guru   In today’s news…we have two members of Al-Zaidi’s cabinet the communications director and now a member of the Finance Committee (which is ‘BIG’) that there is a government trend towards officially removing zeros from the Iraqi dinar and issuing a new paper currency.

Reset Intelligence – Dinar Guru  Hiring a fiduciary adviser is the moment a windfall either stays yours or starts leaking…You are the client. A lawyer, a trustee, a banker, and a trust provider all work for you, and the terms you set decide who comes out ahead…Before fees or structures, settle one thing. Is the person across the desk legally required to put your  interest first, or only to sell you something that is not unsuitable.  In the United States a registered investment adviser owes a full fiduciary duty of care and loyalty across the whole relationship. A broker owes only a best-interest standard at the single  moment of a recommendation…Ask how they get paid, and what they earn if you do nothing…The relationship lives or dies in the  engagement letter, not the brochure…Nothing gets signed across the desk. It goes home to your own counsel first, always.  Interview at least three firms...More than half of wealthy investors speak to only one adviser before handing over the money, and the regret shows up later, when leaving is expensive.  

Jeff – Dinar Guru   Adjusting zeros on currency has everything to do with inflation.  If they add zeros they devalue  it.  If they remove zeros, they’re strengthening the value.  That’s all that it means.  Not rocket science…Our notes are going to  remain the same at a higher value against the dollar and then be phased out of circulation in probably roughly 90 days.

Stephen – Dinar Guru  Are the banks going to accept your Iraqi dinar? … If you ask your bank today if they deal with Iraqi dinar, they are going to tell you they do not deal with it today. Depending on if you talk with a teller, wealth manager, branch manager, you’re going to get different responses.  Some people have come right out and said it’s a scam.  Some people that work at the bank have said, we don’t deal with it and they have not future plans to deal with it.  Some people might say, we’re not dealing with it currently but if there is a change in the rate or if something new  happens with it then they will deal with it.  But as of right now do not even waste your time asking your bank if they deal with the Iraqi dinar because the response is almost always going to be no.  Does that means they’re not going to deal with your dinar post revaluation?  Of course not…Once the Iraqi dinar has value…that dinar is now seen as an asset…

Militia Man – Dinar Guru  A coordinated REER style adjustment remains the more feasible and credible path…What’s been taking place, modernization, formalization, transformation…is part of that whole scenario...Everybody’s moving forward doing  the best they can and working toward the end which is global integration.  

Sandy Ingram – Dinar Guru    Importing…revenues are scheduled to exceed…$2.6 to $2.7 billion by the end of 2026 which will be the highest annual customs revenue in Iraq’s entire history…Reform paid off big…Iraq implemented the ASYCUDA automatic customs system...The systems make it more difficult for custom duties to disappear through corruption, underreporting or inefficient collection.  No more bribing customs officials...This is important because Iraq has been trying to reduce its  dependence on oil revenue.  By doing so they can keep the IMF’s mouth shut about generating revenue outside of the oil industry…

Pimpy – Dinar Guru  A removal, a lopping, a redenomination, a deleting of the zeros, it’s all the same thing…We don’t want them to remove the zeros.  We want them to change the exchange rate…and leave the zeros on there.  That’s what we want to happen.  Them removing the zeros doesn’t change the value of the Iraqi dinar. 

Clare – Dinar Guru  Article: “The central bank denies printing a new currency with zeros removed” Quote: “A statement from the bank said…we deny that the bank has printed new Iraqi currency with zeros removed...any future project related to restructuring currency denominations or removing zeros–should an official decision be made in this regard—will be subject to multiple legal, regulatory, and technical stages, and will be announced, if approved, through the bank’s official channels… along with specifying an appropriate transition period that allows citizens, banks, and institutions to exchange the currency in a safe and organized manner, to ensure the full preservation of everyone’s financial rights and obligations.“

Jeff – Dinar Guru  The troops talked about maybe being out prior to September 30th, maybe around September 15th.  Could that speed up the rate change? …No…Here’s why…Banks planned, prepared, drafted the rate change.  They schedule everything.  If the agreed upon date was September 30th, if the troops get out sooner than that…it’s not going to speed up the rate change.  I’m not telling you the rate change is taking place on September 30th.  Nobody knows that date, but I’m telling you removing the troops before September 30th will not speed up the timing of the rate change because that’s hard scheduled by bankers.  That’s what they do.  They schedule everything.

Stephen – Dinar Guru  No one knows the date.  No one knows the rate.  But from everyone I’m talking to that are smart, intelligent, wise, non-hopium type people, they’re all saying, ‘Start getting your ducks in a row.  Start preparing.’  Establish your cost basis.  Know how much Iraqi dinar you have.  Know how much you paid for it.  Get your sources of funds letter to take with you to the bank.  A source of funds letter says, My name is Stephen.  I acquired X amount of Iraqi dinar on this date from this exchange or this person.  Start getting these things in place just in case the bank requires it…

Mountain Goat – Dinar Guru   …so many articles on removing the zeros and what to do about the monetary reform…Why in hell would they do this if not a major effort to initiate this event. Remember also I am on the phone with my CBI contact to talk about all these articles and she too confirmed they were getting ready for this event. 

Clare – Dinar Guru   Article:  “Lawmaker: Iraq Plans Dinar Redenomination But Law Still Awaits Approval”  Quote:   “Dinar redenomination requires a formal law, parliamentary readings, and a final vote.  The currency reform will not alter the dinar’s exchange rate against the dollar…However, Iraqi government spokesperson Haider al-Aboudi emphasized that no formal decision has been made within the Council of Ministers or the Central Bank so far.“

Stephen – Dinar Guru  If your bank is telling you they’re not accepting Iraqi dinar, don’t get worried.  Don’t get stressed.  That is a typical common response because banks only deal in absolutes.  They don’t deal in speculation.  They don’t deal in hypotheticals.  As dinar investors, we believe it’s going to revalue.  We believe it’s going to have a lot more value than it does today.  But banks don’t care.  Banks don’t know that.  Banks don’t study this. Banks deal with people coming in and out all day long doing their normal banking business…

Jeff – Dinar Guru   Iraq times and delays their actions around what is the rate change date.  Article:  “Iraq cabinet nears completion, only 2-3 ministers unresolved”  This is being timed and delayed…I would set your sights on…around mid-September…When it comes to the timing of the news…it’s a scripted soap opera around what is the rate change date.

Reset Intelligence – Dinar Guru  Question: “Does the redenomination and the evaluation happen at the same time?”    An exchange opens with a window and a deadline.  Bring the old notes to a bank and you get the new ones.  Hold out and on the closing date your paper is worth nothing.  In 2003, Iraqis got three months.  When the window shut, 10,000 tons of Saddam’s notes became waste paper…The deadline did the pushing. And the dinar rising 25% during the exchange did the pulling.  Give people a better  number…and the mattresses empty themselves.  That is the pull that brings in the 8-10 trillion off the streets and into the banks…Paper ordered first.  A window with a deadline, a number worth walking in for…Warning is one thing an operation like this cannot afford.  In Iraq’s own 2003 exchange ran on the same silence.  The louder the denials the closer the counters.

Militia Man – Dinar Guru  Article: “A crisis of confidence and a cash economy:  Round 97 trillion Iraqi dinars are outside the banking system”   roughly 90- 97 trillion dinars sitting outside the formal banking system out of about 105 trillion issued…Roughly two-thirds…is actively used in trade settlements, real-estate deals, and wage payments. Only about a quarter  looks like classic hoarding. That distinction matters...

Clare – Dinar Guru   Article:  “Despite government denials, a member of the Finance Committee confirms the imminent removal of zeros from the dinar” Quote: “the Iraqi government received recommendations from international bodies, including the United States, to remove zeros from the Iraqi currency, arguing that this would help to strengthen confidence in the Iraqi dinar
and thus contribute to attracting more foreign investments,” while also confirming in its report that the Central Bank of Iraq “has not yet provided a timetable for implementing the process of removing zeros,“

Kaperoni – Dinar Guru  Several delete zeros LOP articles are now coming out. But these are not official and they are not the decision of the CBI.  In my opinion they are just to combat speculators.  It is contrary to what Iraq is doing it within the country.  It’s very important when it comes to Iraq to understand what they are doing, not what they are saying. What they are
doing is converting their banking system to digital, encouraging foreign investment and diversifying their economy. These contradict delete zero articles.