Dinar Observer Daily

Sandy Ingram – Dinar Guru  It’s not the news we were hoping for…The new regional Central Bank of Iraq’s governor told parliament’s finance committee that Iraq’s foreign currency reserves have fallen from approximately $109 billion to $77 billion.  This is a decline of approximately $31.5 billions.  That’s an awful lot guys…Iraq’s monthly payroll including pensions is around $5.1 billion a month.  Iraq’s oil revenue has dropped since March 2026…A decline in foreign reserves combined with more dinars entering into the economy can create additional challenges…This is the scenario the IMF has warned Iraq about repeatedly.  And this is why the IMF has not backed Iraq in adjusting its currency…The important question is what happens next?

Stephen – Dinar Guru  There is an acceleration period happening right now that I don’t think anyone can deny.  Even if you’re not a bullish dinar revaluation investor, you could still look at the country of Iraq and say, you know what, a lot has been happening.  They are moving very very quickly.  If you’re holding Iraqi dinar we believe it’s only a matter of time before it does revalue and have greater value..

Clare – Dinar Guru   Article  ”US pressure on Baghdad to expedite the removal of zeros from the dinar to curb money laundering”  Quote: “the approval of this project will strip the old currency denominations of their legal tender value and stop their circulation as official currency, which will force the holders and smugglers of those funds to bring them in and deposit them exclusively through official banking channels inside Iraq to exchange them for the new denominations, which will ensure the  reintegration of smuggled capitals into the national financial system.“

Jeff – Dinar Guru   You’re lucky to see one or two deleting the zeros articles per year…There was 10 to 15 articles in one day.  Ever since there’s been one or two every other day since two Sundays ago.  Today there was another 5 or 6…Normally when they post a tremendous amount of [articles on a subject] it’s because they’re getting ready to do that.

Clare – Dinar Guru  Article: “Iraq to introduce new banknotes with three zeros removed“ Quote:  “Iraq intends to remove three zeros from its currency to modernize financial transactions, reduce physical cash circulation, and return stockpiled funds to the official banking system… Under the suggestion, a 25,000-Iraqi dinar note would become 25 Iraqi dinars, but the currency’s purchasing power and true financial value would stay unaffected…Iraq has sought printing partners in the United Kingdom and Australia, as well as its traditional suppliers in France and Germany, to create an estimated 7.5 billion new banknotes…the Central  Bank of Iraq (CBI) has yet to present a formal draft bill to parliament.“

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. I hope everyone understands this concept?

Stephen – Dinar Guru  There’s been a lot of talk in the dinar community about the redenomination.  Since last week it has taken the entire dinar world by storm, arguing and saying Iraq is going to cut three zeros, it’s going to be a net neutral event, dinar investors are going to get stuck with pretty much what they paid for their dinar initially.  Then you have the revaluation or reinstatement camp…saying, no, no no, this is amazing news because any form of a revaluation or reinstatement has to be accompanied by some type of redenomination, issuing lower denominations that have increased value.  That’s the camp I’m in.  I hope you are in that camp as well.

Jeff – Dinar Guru  Question: “Can Iraq be a sovereign country October 1st without changing the rate?” Jeff:  Not 100%.  To be sovereign a country needs to have full control and freedom over their money, what they’re allowed to do with it…So, no, they have to have full power and control over their country and money to be sovereign.

Reset Intelligence – Dinar Guru  A peg is a decision a country makes once and then defends for good…Iraq put that chart on television 37 days before the deadline that settles who holds the country’s weapons.  Behind it sits a budget that has to write down what the dinar is worth…

Samson – Dinar Guru  Article: “DEPUTIES AND EXPERTS: SEPTEMBER 30TH IS A HISTORIC MILESTONE FOR ACHIEVING FULL
SOVEREIGNTY AND LAUNCHING A PHASE OF PARTNERSHIPS AND DEVELOPMENT“

Militia Man – Dinar Guru   Purchasing power vs. redenomination  –  What’s the difference?  With a redenomination there’s no purchasing power.  It does “ease of use”…A straight redenomination, simply deleting zeros and issuing new notes, changes the unit of account – 1,000 old dinars become 1 new dinar or 10,000 become 10, depending on how many zeros deleted.  It’s that simple.  Prices, wages and contracts are rewritten by the same factor on paper.  Nothing about the economy’s productive capacity, export earnings, reserve coverage or institutional trust is automatically improved.  Redenomination does none of that.  If the underlying conditions are weak, the new notes can lose value just as the old ones did…History is full of examples where zeros were removed.  Inflation simply continued until new face.  I don’t think Iraq fits that.  [Post 1 of 2]​

Militia Man – Dinar Guru   How is Purchasing Power different?  Purchasing power is what a dinar can actually buy in goods, services and foreign currency.  That is determined by real fundamentals…the credibility of monetary policy and the willingness of the market to hold the currency rather than flee it…A coordinated Real Effective Exchange Rate realignment managed by the central bank in concert with the gatekeepers is an attempt to set the rate at a lever that reflects those fundamentals and then defend it.  It is not cosmetic…It requires…the political willingness to let the rate move in a controlled way and then hold it…A REER path…is harder, slower and more credible…That’s the route Iraq has taken…but the decision hasn’t been taken.  A date has not been set…They’re not going to broadcast it.     [Post 2 of 2]

Stephen – Dinar Guru  What we are seeing the last few months is an acceleration period like we have never seen before…We have never seen this much progress that we have seen in all of the last 23 years combined.  It’s absolutely incredible what we’re seeing in the last few months…We are seeing things happen at break-neck speed…We don’t know how much longer this is going to go.  I am personally am excited…Could it be September…October… November…December?  Nobody knows…

Jeff – Dinar Guru   The budget is being sent to parliament for approval – starting October through December.  The rate has to change before that along with all the US troops [leaving].  [Before] all the troops and equipment [leave] according to Trump, we’ve got to get paid.  Those two scenarios are suggesting it’s probably most likely in mid to second half of September...At the end of the day this isn’t that far away.  It’s very close and that’s what matters…

Reset Intelligence – Dinar Guru  Over one weekend, Iraq moved the currency question out of the committee rooms and onto the evening news. The central bank governor told parliament the current monetary stance is a “gradual transition.”…Iraqi-press channels framed the weekend’s programming as a single question: after the zeros come off, does the dinar strengthen or collapse?  ...No state does what Iraq is doing in order to preside over a collapse…A country that expects its money to die does not teach its people how the money works, it rations, it denies, it blames.  What Iraq did over these three days is the opposite…Now the public is schooled on the difference between deleting the zeros and anchoring value…The Iraqi dinar is the most attended to currency on Earth.

Mountain Goat – Dinar Guru  Question:  “do we as dinar holders outside of Iraq have any assurances that when the timeframe to turn in 3 zero notes expire inside Iraq that our 3 zero notes will still be accepted?”  Mnt Goat:  …all we know is what the CBI told us in their plan of 2011. So far my current CBI contact said they intend to stick to the plan…our three zero notes OUTSIDE the country will be used for interbanking... Two paths – what they have to do to recover the hordes of currency inside Iraq and the the second path is what they do to collect our dinar. Two different paths. The point is all our notes will remain legal tender. Don’t let anyone discourage you.  I have been at this for 20 years and I know what they intend to do. If they change it I will be informed by my CBI contact. That is the important part. 

Jeff – Dinar Guru  Article:  “Al-Zaidi confirms that a US official stated Iraq will enter a new phase starting next October”  This could be perceived from some different angles.  It’s almost suggesting Iraq is going to be a sovereign nation as of October.  Here’s a bad way that could be perceived… that Iraq might not be revaluing till the end of September allowing them to be sovereign in October.  [Another way to look at this] Change the rate most likely around the second half of August, giving them all of September to do the 150+ laws and other things like banking reforms.  Get all that approved, finalized, implemented through parliament, all ready to go, have it all done by September 30th…makes them sovereign October 1st.

Mountain Goat – Dinar Guru  Today the 250 note is worth about 2 cents USD, the 500 note about 5 cents USD and the 1000 note about 90 cents USD. I also reminded my contact that the 250, 500 and 1000 notes will remain as notes in circulation after the swap out of currency and so I asked if this does impact anything. She said this still applies and could be a part of the reason why they are hording them. Could it be the citizens are holding on to these notes because they are special? At a $4 new rate the 250 will be worth $1,000, the 500 worth $2,000 and the 1000 worth $4,000.   

Jeff – Dinar Guru   They have 150+ laws all sitting on standby waiting for the rate to change.  Overall, Iraq has very little to do because they’ve been waiting so long for the rate to change. That’s why it seems as though nothing’s getting done…Everything they’re doing is waiting for that rate to change. 

Pimpy – Dinar Guru  Community Comment:  “You did many videos stating it’s a scam.”  Nope.  I never ever ever ever made a video saying the dinar is a scam.  Not ever.  The Iraqi dinar is not a scam.  It’s a legitimate currency.  I never made a video saying that it’s a scam.

Reset Intelligence – Dinar Guru The moment you deposit money into a bank it stops being your property.  You become an unsecured creditor.  When you deposit money at a bank you are making an insecure loan to that institution.  You are not storing your money, you are lending it.  If the bank fails, you stand in line with other creditors.  The first $250,000 is covered by FDIC insurance in the United States.  Everything above that line is an unsecured claim…The FDIC’s own documentation describes deposits as unsecured debts of the bank.

Militia Man – Dinar Guru  A Real Effective Exchange Rate is going to be based off fundamentals.  If you’re still talking about a [lop] you really don’t know what you’re doing.  You really got to pay attention and do a deeper dive.

Samson – Dinar Guru   Article:  “BARZANI : TEHRAN HAS EXPRESSED ITS READINESS TO ASSIST BAGHDAD IN THE ISSUE OF WEAPONS CONTROL“

Sandy Ingram – Dinar Guru  The problem with comparing the dinar of decades ago with today’s dinar ignores major changes in Iraq’s monetary system, economy and the amount of IQD banknotes scattered around the world.  They have overprinted the money…Back before 2003, Iraq had a closed currency …The currency was not readily available to foreigners.  You couldn’t get your hands on the Iraq dinar…The mere fact that we have possession of the currency is an indication that things are very different …This is why you must hold on to your currency.  The supply and demand factor is coming back into play because the CBI has admitted to destroying Iraqi dinar banknotes.  [Post 2 of 2]

Jeff – Dinar Guru   There’s nothing wrong with deleting the zeros. It’s part of the steps of adjusting their currency value.  It’s a good thing not a bad thing…

Pimpy – Dinar Guru  Community Question:  “With them putting out the deletion of the zeros article again…It cannot be far off now right?  This time feels different right?”  It feels like they’re getting closer and closer to the time.  I agree.  They’re going to make a move one way or another.  Either they delete the zeros or leave the zeros and then change the rate.  That time is coming very soon

Reset Intelligence – Dinar Guru   On Wednesday, Iraq’s Prime Minister told the commander of US Central Command to his face that September 30 is “final and irreversible.” Hours later a US official confirmed the pullout is on track…The same week, a plane from Tehran landed in Baghdad carrying the [Iranian] Quds Force commander, unannounced, with one message for the armed factions: hand nothing over yet…Iraq’s armed groups call themselves the Islamic Resistance, and a resistance needs an occupier. On October 1 there is none. What stands in front of those weapons after that is Iraq itself…

Mountain Goat – Dinar Guru  My CBI contact…reminded me that CBI also has a plan but they need a buy-in from all entities such as the World Bank, the IMF and the US Treasury to implement it. They will not allow it until certain security issues are addressed namely the militia and factions. This plan is basically the Dr Shabibi plan of 2011 and is still on the table that also will include the reinstatement of the currency for trading. She told me there are actually only two main obstacles – they need the Oil and Gas law to become law and the issue of the Iranian militia and factions inside Iraq disarmed. 

Stephen – Dinar Guru  Imagine you have a million Iraqi dinar [And the exchange rate is 1 to 1] and Chase bank is charging a 7% fee to exchange that currency, what if you can negotiate that down to 5%?  Instead of paying $70,000…now it’s $20,000…I believe you’re going to be able to negotiate those rates down to zero depending on how much Iraqi dinar you have.  The  more dinar you have, the more leverage you have, the more negotiating power…to get those fees reduced from 5% to 3% or 7% to 4%..

Jeff – Dinar Guru  Only in the country of Iraq a 25k becomes a 25.  Outside the country when the rate goes to change, the two currencies will coexist together for a period of 25 days, giving everybody in the country and around the world 25 days to  turn in their large 3-zero notes.  Get smaller notes…if they’re in country.  Outside the country we’re not getting smaller notes.   We’re doing a currency trade from large notes to US dollars.