Dinar Observer Daily

Dinar Investor – Jeff   …they’ve purposely delayed the formation of the government because it’s literally the linchpin.  It’s the last thing we’re going to see right before the rate change…the reason why the rate change will not occur this week is…Iraq has to achieve stability before the powers-that-be will allow Iraq to change the rate.  This week they’re having massive meetings between Kurdistan and Baghdad.  They have to reach agreements on every level to achieve stability…I personally feel Mahdi has to be in country when the rate changes…this is a once-in-a-lifetime historic event.  When it happens logic tells me Mahdi would want to be inside the country when the rate does change…he wants to be part of this historic event…Mahdi is gonna be in china on Thursday to Sunday…I still have the remainder of September on my radar.  I still have my eyes on next week…

Kaperoni – Dinar Guru   …They will never introduce any smaller categories until the currency has begun to appreciate to a point where they would be needed and it would be seamless without fanfare.

Adam Montana – Dinar Guru   …China has the ability to dump loads of money into Iraq’s infrastructure, taking significant weight off of the Iraqis in that regard, which would free up Iraq’s resources (time/people/government/etc) to focus on their actual bread and butter. China won’t be doing this for free… in fact, I can foresee Iraq becoming so indebted to China over this that they are forced to raise the value of their currency just to cover the debt that they will willingly incur from China in order to fast-track their future. Iraq then officially enters the currency manipulation game, just to keep up with China, and that just tickles me pink!  Who wins if this happens?  Everyone.  China wins. Iraq wins. We win. This is a clear path to Iraq becoming even stronger, with a stronger currency, and the rest is sort of irrelevant.  Pretty neat stuff.

Dinar Investor – Jeff   …let’s set our emotions aside for a second…they’ve been setting the stage for this…keep in mind there is no  “Dinar For Dummies” manual.  We don’t have a book or guide that tells us every step Iraq has to do before the rate can change…So we have to look at what they do and what they say.  Look at their actions to piece things together and then you have to make some opinion with that…their actions suggest there’s not much more they can do before they change the rate…Iraq has to achieve stability before the power that be will elect Iraq to change the rate…the news articles are strongly suggesting and telling us that they’re in forward progress to reach stability…the news looks very good…

Adam Montana – Dinar Guru   Quick note about the drone attacks on the Saudis – OIL is a pivotal issue in the Iraqi Dinar rate. It’s no surprise that the recent events caused a flurry of commotion in the Dinar world. Oil speculation went wild for a couple minutes (ok, days), but currently stabilized at $59…

Chattels – Dinar Guru  Article:  “Parliament votes on a law and ends the reading and discussion of three bills…”   Again, no parliamentary action on any important law(s), IMO.   Quote:  “…held under the chairmanship of Mohammed Halbousi and the presence of 175 deputies,…”  Attendance is low. Little more than minimum quorum requirement.  Parliament will adjourn until next Saturday…

Dinar Investor – Jeff   …After looking at all the news…looking at everything that’s going on, I’m of the opinion that the rate change will not occur this week.  But we look like we’re still in a very good position…the thing is right now they’re too quiet.  They’re not giving us any clues to what’s going on…they could end this next week but it could roll into October…the signs and variables show that we are still very close…

Breitling – Dinar Guru    [When I got into the dinar]…they were not talking about getting it to a $1…But as the country developed…they were like, no, we’re going to get it to $3.25.  And even with the markets changing, Do I think they can get it to $3.25?  If they can get into the markets in the west, yes, they can get it too $3.25.  I don’t see what would be able to stop them…will they?  I don’t know.  But once they do start adding value to their currency remember they said they were going to put a new currency out at the same time that will both coexist equally and one currency would be phased out over a two year process.  They will both gain value equally…this is coming from the CBI who have the authority to talk about this and implement that authority…

Mountain Goat – Dinar Guru   …If everything goes as planned, then they move on to the “reinstatement”. This means reinstating the dinar back on the global currency exchanges and then it can be legally traded…Yes, its been a very long journey…The nice part about this final step is when it does occur this is when we get to go to the bank and exchange and not before. There is no premature exchanges scheduled for us internet investors…  [post 2 of 2]

Mountain Goat – Dinar Guru    …I have to tell you without even a shadow of a doubt that I am 1000 % sure it will NOT happen this week. However, we are still within a very good window of opportunity to get the smaller of the smaller category notes launched and this part of the process underway. This does not mean we will be going to the bank this week. …So, once they launch the smaller of the small categories, the next part of the process is to CHECK FOR INFLATION and wait to see what happens. I am told this could take 3 days, 3 weeks or even 3 months. The next step depends up the CBI and observing what happens next.  [post 1 of 2….]

Breitling – Dinar Guru   With Iraq how does it work?  They tell everybody what they want to do through Parliament, the Ministry of Planning, then they go to the Ministry of Finance and then they go to the CBI and the CBI manages it.  That’s how it works…what they said they want to do with the Iraqi currency has never changed.  You should be very very happy…

Chattels – Dinar Guru   Article quote: “The central bank sells more than $ 243 million at a currency auction”  The volume in sales of the dollar in Iraq continues to be relatively high.  In Parliamentary action yesterday nothing important happened, IMO.

Breitling – Dinar Guru    Don’t worry about what’s happening with Saudi Arabia.  Do not worry if we go to war with Iran…because we anticipated all this stuff we have a way to lower the price of oil…what’s that mean for you and me?  Iraq, they’re gonna have to add value to their currency.  They are not going to be making money selling energy.  So you and I are sitting on their currency.  Huge opportunity.  I’m excited.  I’m not kidding.  It’s a beautiful thing…It’s coming down the road.  [Post 2 of 2]

Chattels – Dinar Guru   Article quote: “The central bank sells more than $ 243 million at a currency auction”  The volume in sales of the dollar in Iraq continues to be relatively high.  In Parliamentary action yesterday nothing important happened, IMO.

Breitling – Dinar Guru   …They [Russia] are putting out a report that it [oil] is probably going to be $26 a barrel in the year 2020…it’s going to be low.  What does that mean for you and me?  It means Iraq is going to add value to their currency.  It’s not a hypothetical.  They know.  They have the most undervalued currency.  What allows them to do that is the profits they’re making selling energy in US dollars.  But once that dries up they’re not going to be sitting on a domestic currency at a tenth of a penny.  It’s not gonna happen.  They’re not China.  They’re not Vietnam.  They don’t have a labor force like that. [Post 1 of 2]

Adam Montana – Dinar Guru   […latest indicates with the attack on Saudi oil we may be seeing 100 a barrel soon. Based on what you are seeing and hearing will this move the RV closer or will the concerns for possible attacks on near by Iran and possible Saudi retaliation cause Iraq to pause and take a step back? Look into your crystal ball. LOL.]  My crystal ball says anything that will guide oil to higher prices is potentially a good thing for Iraq’s future. Obviously there’s more to it than that, but the Crystal Ball tends to be a bit vague at times.

MilitiaMan – Dinar Guru   Article:   “China and the financial sector”   Quote:  “we must in fact have a banking system capable of managing this process, through the adoption of correspondent banks or the opening of branches of Chinese banks inside Iraq, as can The adoption of bilateral partnerships in the financial sector, the result of which banks are sober leading to the mutual benefit of the economies of the two countries.”    The above data supports that WS [Guru Walkingstick] is right and apparently on time. We were told about this PBs [Bilateral Partnerships ?] in the USA to be within two weeks back on 09/06/2019. Well two weeks from then is 09/20/2019 imo. Today [Sunday] is the 15th.. lol  If they will arrive within five days it sure would seem they would have the international rate exposed prior to that time, imo… the pressure is on now and big time. imo! The most logical time is upon us. imo That is when the markets bare the least disruptions…imo!

Dinar Investor – Jeff    Article [Parliamentary Energy:  The Presidency of Parliament addressed the government to send the oil and gas law to vote on it].   …we are in close proximity to the rate change that is why since mid July the news has been flooded with articles talking about HCL and Article 140…But what I want to stress to you is these are post rate change laws…news has blown up and exploded with articles talking about HCL oil and gas law and Article 140 because Iraq is now positioned for these.  We’re right in front of the rate change…

MilitiaMan – Dinar Guru   Article:  “Government source reveals program of Abdul-Mahdi’s visit to China”  Quote:  “The economic and political circles in Baghdad are looking with optimism to the forthcoming visit of Prime Minister Adel Abdul Mahdi to China on September 19 for four days, and it is reported in some economic circles that the visit will lead to the signing of about 30 large memorandums of understanding between Baghdad and Beijing…”  Sure looks like this is the opening of the doors..  Firstly before they all go live, Iraq will have an international medium of exchange!! Imo.

Chattels – Dinar Guru   Article quotes:  “Iraqi Oil Minister: Kurdistan produces half a million barrels of oil a day & none of its benefits go to the Federal Government. However, we are close to reaching an agreement with Erbil.”;  “The Ghadhban said that “optimistic to reach an agreement between the two sides,”stressing “We and the Kurdistan region in one ship, and we should reach an agreement.”  One question is whether the optimism expressed by Baghdad is shared by Kurdistan. Another question is whether the “agreement” is budgetary and for one year or is it a permanent agreement equating to the long awaited HydroCarbon Agreement.  Any permanent HydroCarbon Ageement will likely require amendment / clarification constitutionally.   …a budget law agreement, if fully performed/honored by both sides, could be a good beginning.

Breitling – Dinar Guru Why are [brokers] willing to pay a lot more than they used to to buy your dinar back? They’re selling it to these guys [large currency investors] that’s why. It’s that simple…It’s hard getting money out of Iraq. It’s not easy. It would come from Iraq to Jordan to the United States. And from the banking industry in the United States it went from the [CBI] auction floor to Bank of America to Chase Bank. And that’s where I bought my currency – Chase Bank. So that’s a couple routes on how that currency gets here. But it’s dried up. That system doesn’t work anymore. So there isn’t as much dinar in the market…

BGG ~ I beg to differ with Breitling’s synopsis as to why brokers are willing to “pay a lot more” than they used to – to buy Dinar back.

It’s because THEY HAVE TO. When we (Dinar Updates / The Dinar Exchange) first got into the “Buy – Sell” market we did two things:

1) We started paying A LOT more than everyone else as a “Buy-Back” price. We still are. We currently pay $850 per million (for uncirculated). Quick turn – no gimmicks.

2) We also started selling for A LOT less than everyone else. 

Our current sales price is $975 per million (shipping included).

The spreads these jokers were making on people were JUST RIDICULOUS. They were paying $500-600 on the buy side and then getting $1100-1300 on the sell side. CRAZY!!

It just wasn’t fair at all.

The real reason they are paying more – isn’t that they are “willing to”…

It’s that they HAVE TO.

If they don’t – they won’t get any and they won’t be able to compete.

It is just that simple – economics in action.

Dinar Investor – Jeff   article on this morning’s session of Parliament – they did not get anything done that was important…a few days ago I posted another article where they said they were going to try to resolve the Education Minster during the first FEW legislative sessions of Parliament…what we’re waiting on right now guys is for them to finish the formation of the government by putting the Education Minister in place.  IMO they’ll probably do it next Saturday the 21st…

Dinar Investor – Jeff  …IMO tomorrow you will not see any information about the VP’s in Iraq…I have some very strong confirming  factual information I just received from the Iraq government directly.  I will share this with you when I see the one article I’m looking for…there is only one remaining position.  It is only the Education Minister.  It shows that they have done away with the Vice Presidents.  Those positions have been eliminated…The only position we are waiting on is just the Education Minister.  IMO they are going to complete that position on Saturday the 21st.  When I see news articles telling you that I will share my factual information that I have on how I received it directly from the Iraqi Government…

Mountain Goat – Dinar Guru  Simply put when the time comes the IMF will put the IQD in an SDR basket of currencies including the Yen, Yuan, Pound, Euro, USD and then the IQD.  …What does this do?  It creates stability in the marketplace since, if one currency gets too shaky, the others will back it up and support it… How does putting the IQD in this SDR basket effect our exchange?  Since the IMF will have to now weight the IQD along with the assets from these other 5 currencies in the basket, it will cause a re-calculation of the IQD rate and drive it higher like the pre-1991 rate plus equity. This is what will be the driving force behind getting more than a 1:1 after deleting the zeros. …This is what will justify it.

Kaperoni – Dinar Guru   I can say with certainty there will be no introduction of small  denominations because that’s just not how monetary policy works there is no RV or RI. If the dinar goes up in value gradually as we expect any transition to any smaller denomination or notes would be seamless with little fanfare. If Parliament were to pass a law to redenominate the currency (LOP) then I could see the introduction of a package of small notes and displayed in advance of their implementation.

Adam Montana – Dinar Guru   It’s been some time since this came up in the news, but I believe it was about 5 months ago I made mention of Saudi Arabia working on playing nice with Iraq again… and what they have to gain by doing so. Saudi Arabia couldn’t be bothered to give Iraq the time of day 10 years ago… now, they are changing their tune: [Article] “Iraq-Saudi border crossing to reopen after nearly 30 years“.  …WTI OIL is currently at 54.94…  Other news that’s positive – CBI, IMF, GOI are all active. We are not in one of those vacation-day lulls. Overall, it looks like things should start moving… right in time to hit a mid-September spurt. 

Dinar Investor – Jeff    [Article: Saleh and Abdul Mahdi discuss developments in the political situation and the implementation of the government program]   …the “government program” is everything that exists after the rate change.  It’s the period after the rate change that gives the citizens a better life.  So that’s why they’re talking about implementing the “government program” now or soon because that’s the period after the rate change…

Mountain Goat – Dinar Guru   …We know that the Financial Management Law was written and passed in parliament in order for parliament through the financial committee to take charge of the monetary reforms and force the CBI to perform their job.  Up to this point the CBI had excuse after excuse as to why it could not proceed. We read about all the corruption in the CBI. We heard about the necessity to replace all the proxy positions with permanent positions. Then we watched it happen. The announcement came out about the replace of the director of the CBI and he was supposed to take his position in early September. …Yes, we still expect the formal announcement of the new Governor of the CBI any day now…

Kathy – Dinar Guru   Article:  “Maliki denies allegations of smuggling Iraqi treasury money”  Quote: “The security authorities at Dubai airport seize a shipment of funds full of dollars stolen from the treasury of Iraq,estimated at hundreds of billions of dollars on a private Iraqi plane belonging to Nuri al-Maliki, which was intended to be smuggled to a European country “This money is equivalent to the budget of 10 Arab countries for five years.”  Equal to 10 Arab countries budgets for five years! Holy Cow!

Breitling – Dinar Guru   Why do you feel so good about what’s going on?   It’s because the people who put this together they’re moving this forward – that’s why.  The language that they used at the beginning, ‘We are going to start adding value to our currency and we want to participate in certain markets.’  You’re watching it literally happen before your very eyes…