Dinar Observer Daily

Mountain Goat – Dinar Guru   I have to tell everyone right now it appears that everything is on track to move ahead with the project to delete the zeros and launch the smaller category coins and maybe some notes too. We are about to move to the next and final stage…

Dinar Investor – Jeff  …the UN is seeking to get Iraq ready to become International…the UN was just in Iraq back in July.  The UN is back in Iraq now...back in July…they were only there for the consultation.  They weren’t reviewing all of Iraq’s progress.  The only reason why the UN would be reviewing Iraq’s progress…is because Iraq is advancing to their next stage.  They’re becoming international.  This is huge.  That’s why I have brought such a large emphasis on the month of September…You have the UN in Iraq.  You have Iraq telling you they’re gonna finish the formation of the government.  This is huge…

Kaperoni – Dinar Guru   Iraq is a risky country.  And most banks will not deal with the dinar even when they move to Article VIII.  At least initially anyway.  So for gurus to be talking about cashing in/rates/spreads it’s all nonsense at this time. One of the reasons banks will avoid the dinar is because of its potential to be volatile.  Most banks by nature are conservative and avoid these types of currencies. That is why I never really discuss the next step of cashing out/exchanging is because until the dinar is internationally convertible (Article VIII) and used in commerce there is no point.  And if the dinar floats and gradually appreciates as we expect, it’s a whole different process as investors may have to get involved with market makers/brokers or dealers to set up accounts. Time will tell.

Dinar Investor – Jeff   …keep in mind Iraq is still under UN Chapter 7 sanctions…Notice how the UN is back in Iraq over the last few days…Iraq is fulfilling its obligations to get out of Ch. 7 to become international.  And notice how they’re doing it in Q3.  Article quote “Commitment show by Iraq in fulfilling all remaining international obligations…”   This is showing you Iraq is on its way out of Ch 7 and that’s why the UN is there now.  This is huge...

Kaperoni – Dinar Guru   Some might look at this IMF directive as “old news” but it’s not.  These directives don’t change and take time to impliment.  And in the case with Iraq it took them 5-6 years to accomplish.  With of course the help of the IMF stepping in, in December 2015 signing an agreement to become trustee and facilitating/oversight on monetary reforms at the CBI.

Mountain Goat – Dinar Guru     5.  we find out that the currency reform is in FACT now part of the country wide reform package. Article Quote: “part of the currency restructuring plan and banks includes the creation of coins for trades. Finance to support the national economy.”   But remember they are not saying anything in the article on the process about reinstating the dinar on the global currency exchanges. At least not now. They probably won’t either since they are so close. If they do it will be be after the event…As you should know this is when we go to the bank and not before…  [post 3 of 3]

Mountain Goat – Dinar Guru    4.they are telling us the coins will be used in trade with other countries. Does this mean the currency auctions using only US dollars for trade will stop? It appears they will have to if this article is correct. Remember using the dinar will create a demand for it. When this happens it will become more valuable outside of Iraq…the value will rise, thus the rate will have to rise too.   [post 2 of 3]

Mountain Goat – Dinar Guru   so this is one of the WOW articles we have been waiting for.  1. they just told us they passed the needed legislation in parliament needed by the CBI to get the coins re-minted and in circulation...  2.  it is the re-education article we have all been waiting for so long.   Its here and we should be all jumping up and down for joy;  3.  repeatedly whenever they talk about the coins they also talk about the project to delete the zeros in the same breath so we know for sure they fully intend to do both concurrently. This is exactly what we need to get the increase in rate of the dinar;  [post 1 of 3]

Kaperoni – Dinar Guru    I do not believe Iraq would LOP or re-denominate the currency, the IMF certainly has not stated such and Iraq has demonstrated for several years a successful monetary policy including over the last year and a half where they’ve maintained a 2% spread or less. But I also don’t believe they could ever substantially RV/RI the currency because there’s just too much currency in circulation. People doubt the fact that the CBI and IMF have reported in excess of 42 trillion.  It’s in print for all to see.

Mountain Goat – Dinar Guru   Article:  “RECENT PARLIAMENTARY VOTES HAVE BEEN RAISED CALLING FOR THE REINTRODUCTION OF COINS”   …here is one of the articles I told everyone to be watching for. This includes the passing of the needed law by parliament to re-mint the coins and reintroduce them.  Its now DONE as they just told us in this article. 

Kaperoni – Dinar Guru    I want to clear something up since I’m getting some fan mail..lol. I do not think it’s going to LOP.  What I am saying is if parliament has its way they will LOP the currency.  Lucky for us though the CBI is following the directive from the IMF as far as we know…Which is to create the conditions for the currency to float.  That is why they are pushing so heavily to diversify and build a market economy.  It’s taken some time for Iraq to put the conditions in place, in fact several years but things are beginning to line up for early next year as they add 72 trillion dinar to the budget to kick-start the economy.

Sandyf – Dinar Guru   [Has anyone in here seen an article or source from the CBI or government stated that Iraq may LOP the currency?]  There is no such thing as a “LOP” so there never would be any articles. The correct terms are Redenomination or Re-basing the currency,there have been many articles from both CBI and government sources to say that was the plan.  …In a Redenomination the old currency IQD at 1190/USD would be replaced by a new currency, possibly IQR, at 1.190/USD, deleting 3 zeros. The monetary unit(Dinar) would be revalued from 1190/USD to 1.190/USD which would be an increase in the value of the Dinar against the dollar and lead to an increase in purchasing power.

Dinar Investor – Jeff    …we are a lot closer than we’ve ever been.  I want to stress to you we’re definitely a lot closer…you’re not gonna see this in days.  At a minimum we’re at least 3 weeks out…I promise you you’re not gonna see this until more towards the end of September.  Easily in the second half…you will wait until the formation of the government’s done.  That’s a promise to you…The CBI made it very clear back in 2014.  They said they’re gonna delay this for 5 years…until Iraq has achieved political stability…just stay grounded.

Bloodloch – Dinar Guru    Does that mean we can divide the first into the second and get an exchange rate?  Nope. That’s just the velocity of money formula.  Does that mean if they stop the auctions and everyone inside Iraq’s borders must then conduct all business with both old triple-zero, and the suspected upcoming new three-missing-zeros Iraq Dinar notes and coins, existing side-by-side as promised, that their money supply will plummet in terms of face value outstanding and that less of a thing is a more valuable thing? Yep.   [post 2 of 2]

Bloodloch – Dinar Guru   If the triple-zero Iraqi dinar is allowed to float, in conjunction with the introduction of new, lower denomination currencies valued near to US dollar equivalencies, it’s going to float like a ballistic missile.  Am I worried that they can’t do that with 42 Trillion IQD in outstanding currency?  Nope.  Why not?  Because their annual Gross Domestic Product is 269 Trillion IQD.  [post 1 of 2….stay tuned]

Mountain Goat – Dinar Guru   Article:  “THE PARLIAMENTARY FINANCE COMMITTEE, ON MONDAY, ANNOUNCED A TREND TO RE-WORK IN THE CURRENCY AND THE REMOVAL OF ZEROS FROM BANKNOTES, IN ORDER TO STRENGTHEN THE ECONOMY”   I especially like the heading of the article. This process is now on the way. Hold tight…its coming…

Mountain Goat – Dinar Guru    The news for our investment could not get any better.  It is moving along just as I said it would when they were ready. They are now ready.  So far the educational process is right on target. In fact I am surprised the have ramped it up so much. Multiple articles every week now. Along with the increase in news articles we are now also see repeated replays of broadcast on the Iraqi TV stations about the coins and the project to delete the zeros. WOW! …Did you buy your champagne yet?

Larrykn – Dinar Guru   you guys are really freaking out over this Lop thing, that won’t happen, they told us years ago what they had in mind and a lop was not it…they told us what they wanted to do. …I really don’t believe they will lop…

Adam Montana – Dinar Guru   [Question from newbie   – …if they delete the zeroes, then 1,000,000 IQD becomes 1,000 IQD, and if it RVs at 1:1 then an original investment of $850 +/- for 1,000,000 IQD becomes worth $1,000?]    More or less correct. That scenario is considered a lop, and is mostly a zero gain/loss scenario.  If the 0’s are removed from the exchange rate, it’s a whole different ball game.

Kaperoni – Dinar Guru  The odds are very high that they’re going to float as long as they continue to move forward developing a market economy, I also believe a LOP is unlikely but possible. An RV or RI has zero possibility because monetary policy does not work that way.  [Truth is nobody knows if it is going to be float or RV, but we do know it is not a lop,that would have happened long ago…can you imagine the investors having confidence if they lopped]   I surely cannot say with absolute certainty, but I do know for a fact in 2012 the plan was to float the currency.

Mountain Goat – Dinar Guru   Article:  “COMMENTED MEMBER OF THE IRAQI ECONOMIC COUNCIL SADIQ AL – MASHAT, ON THE STATEMENTS OF THE PARLIAMENTARY FINANCE COMMITTEE ON THE IRAQI GOVERNMENT ‘S QUEST TO RE-WORK COINS.”   …Remember …there will be strong opposition to this bold move by the finance committee as those making billions off the existing system with 1/8 of a penny dinar will not want this change to occur. This corruption has been the hold up all along. But these days are about to be over.

Dinar Investor – Jeff   Article:  “Baghdad and Kurdistan agree on partnership in international conferences and meetings”  When you look at a lot of the current articles coming out between Kurdistan and Baghdad, they’re strongly suggesting/indicating that the Kurds and Baghdad have reached an agreement, just not publicly announced it.  So, ultimately that’s what we are waiting for…to publicly announce it…that they have agreed …and that they have everything worked out on the oil and Article 140 for the numbers in the 2020 budget…and then after that to know if the stage is officially set, we want to see what their next actions are…do they advance straight to the formation of the government or do they do something directly after that.  That’s what we are looking for to know if the stage is officially set based on how fast they advance to the formation of the government.  That will tell you everything you need to know.

Kaperoni – Dinar Guru  We do not want them to delete the zeros, because that’s a LOP. What we do want is for the rate to increase.  And the only reasonable means to accomplish that is via a float allowing the dinar to rise as investment comes into Iraq.  Anything else does not benefit us.…You cannot significantly RV the dinar with excess of 42 trillion in circulation unless you can significantly reduce the money supply first.  Hard to do unless gradual. …We don’t want a redenomination/LOP. Those are neutral events.  It’s current rate is its real value. Unless they float the currency and let market forces set the rate.  

Adam Montana – Dinar Guru   I’m just going to give everyone a brief…briefing… the news is slow… Bad news – we haven’t heard anything HCL related. Good news – once we DO hear something about HCL, I think it’s going to be an avalanche.

G-Lin – Dinar Guru    Article: “Trade completes electronic window project”  Quote:  “Iraq Trade Point will activate the work of the private sector and promote the growth of the Iraqi economy and will be the focus of all international goods,”;  “the completion of the electronic window project.” You gotta love the word completion. IMO this is one of the most important arts. I’ve seen in a while…good stuff.

Mountain Goat – Dinar Guru  Article:  “THE COMPLETION OF THE ELECTRONIC WINDOW PROJECT FOR THE IMPORT AND EXPORT TRADE”   Why is this article so important?  …It is important because in order to pull this off they will need to get rid of the currency auctions and rely on dinar to pay for trade. Thus, if they do they will need to be tied in to the FOREX markets to determine the current currency rate of the dinar while trading.  …This is the platform to be used. This is exciting news and is all VERY GOOD for us.  So much good news this week in progress of getting us the reinstatement of the dinar.

Dinar Investor – Jeff     I will only have about 3 more big news. 1: Kurdistan – Baghdad Reach Agreement   2: Form the government.  3: rate change.

Mountain Goat – Dinar Guru   So what should we expect to see next?  We are looking for news that parliament has passed the needed legislation and then sent it to the CBI for the coinage reform proposal by the Finance Committee. Then very soon the CBI should “formally” announce the new CBI director. Allaq is due to leave in early September and his replacement will then take center stage. I believe that possibly the timing of the coinage may happen about this timeframe.  We also look for more news of the “project to delete the zeros” going forward once again. We also look forward to news articles to educate the citizens on the new coins for smaller categories and the update on the CBI site for the new coins…

Mountain Goat – Dinar Guru   Article: “FORMATION OF A COMMITTEE TO RAISE THE PRICE OF THE IRAQI DINAR AGAINST THE US DOLLAR”  …we know that if they issue the coins of much smaller categories, they will need to significantly raise the exchange rate of the dinar (the value is already present at 1:1). But when will they “reinstate’ the dinar back to the global currency exchanges? This is what we really want to see happen and is when we go to the bank and not a moment before…

Kaperoni – Dinar Guru   Does anyone actually believe the CBI could RV or RI the dinar at 1 to $1 or greater with an excess of 42 trillion dinars in circulation?  That is 3x’s the worlds money supply.  It simply cannot be done.  And the CBI cannot reduce the money supply overnight (in fact they mentioned the currency would remain in circulation for up to 10 years).  The only possible and viable solution is a gradual reduction of the money supply with a gradual increase in the exchange rate.  Such an increase in the exchange rate could occur as inflationary pressure rises on the financial system as investors bring capital to Iraq.  Any other option for an increase in value just isn’t viable or realistic. So we keep our fingers crossed that investors come to Iraq beginning with a 2020 budget, increased 72 trillion expenditures.