Dinar Observer Daily

Mountain Goat – Dinar Guru     We have seen the evidence of this recently with the smaller category 50 dinar being reintroduced.  I am told to watch for the 100 dinar notes as this will be a sign that the reinstatement is VERY close… I am told this is not something that is going to happen months from now but is in the implementation phase right now and we can expect something in the next few weeks. Folks this is WOW! news. We can only hold on and wait and see what happens next…   [post 2 of 2]

Mountain Goat – Dinar Guru    So we know we were waiting for the “Financial Administration law” to be passed in parliament. Is it now passed? Some say it is done but I have not see any articles on it. I called my CBI contact in Iraq and they said it is passed and they have gotten the word weeks ago by the finance committee to move ahead with launching more of the smaller category notes for the project to delete the zeros. So they have been doing so.  [post 1 of 2]

Adam Montana – Dinar Guru   Iraq is not specifically included or excluded from it, despite the founding information you can see above, and they are in prime position (GOLDEN OPPORTUNITY) to monetize their place in the deal.  I don’t know what else I can say about it…Iraq is in the best place we could hope for. Ramadan is nearing it’s end, we are looking at a live fuse attached to a financial firework, and I won’t be surprised if they light the fuse before 4th of July.  Not that Iraq cares about the 4th of July… that date just happens to mesh with the “live fuse” metaphor, and the timing is right…I’m excited to be on this side of the microphone as things go down!  [post 2 of 2]

Adam Montana – Dinar Guru   Article:  “Parliamentary Economy: Iraq has a golden opportunity to increase its oil production”  Last week, I was expecting a particular bit of news out of Iraq, based on conversations with my personal contacts.  This isn’t earth shattering news, on the surface…it’s very positive for us…  I’ve been talking about how the current OPEC agreement is a huge “ace in the hole” for Iraq. That article above is the biggest “bat signal” imaginable!  I’ll spell it out real quick – OPEC (The Organization of the Petroleum Exporting Countries is an intergovernmental organization of 14 nations, founded in 1960 in Baghdad by the first five members, and headquartered since 1965 in Vienna, Austria. Wikipedia) currently has an understanding / agreement to limit production.  [post 1 of 2]

G-Lin – Dinar Guru   Article:  “Parliament will resume its meetings on the 11th of June”   Quote:  “The presidency of the Council attributed to the resumption of meetings of the Council after the Eid, on Tuesday, June 11, 2019.”

MilitiaMan – Dinar Guru    With the FML Amendment being passed on or around May 22 of this month tells me that they have a time clock on things now per the Constitution requirements. The President is to or has signed the law. Even if he doesn’t it becomes law imo within 15 days or at that mark regardless if he signed it. Then off to the gazette it goes which is understood to be about 3-4 days. Thus, they have it geared to finish up in June, imo. The amendment has the data needed for the new currency and the 2020 budget with that new currency in mind imo… 

Delta – Dinar Guru   Report:  “Currency and Price Stability”   […so this is saying that IF the dinar was international, the rate would be somewhere in the $1.71 to $2+?.]  IN 2017  [the dinar] WAS WORTH 1.71 BUT NOW IT SHOULD BE WORTH AT LEAST IN A MID 2 RANGE…BUT WE DON’T KNOW WHAT THEY WILL DO UNTIL CBI POST THE NEW RATE...WE KNOW SHABIBI SAID IN THE PAST THAT THE GOAL IS TO MAKE THE IQD LIKE IT USED TO BE IN 70-80 …AROUND $2.85…BUT AGAIN WE DON’T KNOW IF THE PLAN STILL THE SAME …

MilitiaMan – Dinar Guru   Article:  “Daily rates of the exchange rate of the Iraqi dinar against the US dollar in the markets of Iraq”  More direct data that once the rate changes, the spread sheet can be updated and reported accordingly in the same effective format.. imo.

MilitiaMan – Dinar Guru    Article:  “The Iraqi Central Bank is preparing to open up to the world”    Quote:  “…the implementation of this survey comes as a result of the spread of this profession, which is due to the private sector taking the foreign and internal transfers, after being confined to the Central Bank of Iraq.” Wow…They are going public (private) and global. The money is going international… Wow…This is huge…imo!  They are now not confined. They are opening up to the world just as they said they would. The Private Sector is now going to drive capital formation.  Exactly why they have been talking about the citizens and there savings.  The private sector doing internal and foreign transfers of money is an international thing. That has requirements and rules to follow …Sure looks like more signs of article 8… …The CBI told us they were to expand the exchange rate and the gold database. Now this one is telling us they are doing things with transfers…Gotta love the timing. imo.

Mountain Goat – Dinar Guru   Article:  “SIEMENS HAS STARTED WORK ON CONTRACTS FOR THE FIRST PHASE OF IRAQ’S ELECTRICITY DEVELOPMENT IN IRAQ”    We know that within the project to delete the zeros includes electronic banking. Oh -this means they need electricity….right? So can you see how having electricity 24/7 again throughout Iraq can only help in this process. Lets’ see you have the banks that need it for international transfers of funds, ATM machines need it, merchant shops for Point of Sale transactions need it, etc, etc,. So this is a really good this to push Iraq forward.   Is this the hold up for the reinstatement?   NO!   But it can only help.

MilitiaMan – Dinar Guru  Article:  “Foreign exchange rates against the dollar for the period (1995-2018)” …Notification they are ready to roll.. imo! 

MilitiaMan – Dinar Guru  I believe if one steps back and thinks about the totality of all these [articles] the CBI has provided today, one may take the view that they are clearly talking very loudly! They clearly want the people to understand what is happening. This is more escorting now that I can remember. Collectively with all we have before, us there are not hiding what is to come.. imo A good thing…  

Mountain Goat – Dinar Guru   Sadr already told parliament a week ago to do something about it. Then we heard that this is planned to be fixed before the end of the current parliamentary session and that the PARLIAMENTARY FINANCE HAS COMPLEMENTED THE “FINANCIAL MANAGEMENT LAW”. This law is supposed to be the path to forcing the CBI to act upon the corruption in the currency auctions and move ahead with the project to delete the zeros (which we know will bring us the reinstatement and thus a significant increase in the value of the dinar)   [post 2 of 2]

Mountain Goat – Dinar Guru   Article:  “IRAQI INDUSTRY DELIBERATELY KILLED BY CURRENCY AUCTIONS”  Of course, we as investors all see it too so this news is not new to us. The important part if more and more people in high positions in parliament are frustrated too and see that the lack of reinstating the currency is killing any prospects for any real progress in Iraq. The delay is all due to corruption and nothing more. So over the last couple weeks we have had four (4) articles already on this topic so the pressure is building to do something about it. [post 1 of 2]

Mountain Goat – Dinar Guru   When is the turning point then when Iraq finally moves completely into Article 8 of the IMF charter for member nations and then operates fully in this capacity? …for now this has not yet “fully” happened. All I can say to you, without a shadow of a doubt, is that they still plan to implement “fully” the project to delete the zeros and issue some day the other smaller category notes. They appear to be phasing them in slowly, just as they said they would…  [post 2 of 2]

American Contractor – Dinar Guru   The Iraqi economic conditions are gradually getting better…The country is receiving more foreign investment as its coming in slowly…but the recent conditions like higher oil prices and higher public and private investment…Iraq is getting better.  Iraq is working within the parameter of the World Bank and International Monetary Fund…The spread between the official and parallel exchange rate is getting closer (2%). Iraq has low inflation.  Some say in the single digits.  The Iraqi dinar is pegged to the USD.  The CBI is using that to keep the inflation low.  The CBI money supply has been contracting started last year.  This may be a good thing.  Will have to wait and see what develops with the IQD.

Mountain Goat – Dinar Guru   Last week the CBI issued yet anther smaller category note (50 dinar) along with the 250, 500 and 1000.   …The CBI is really trying to keep these larger 3 zero notes off the streets (5k, 10k, 25k and 50k notes). These are the ones they needed to reduce by 2/3 of the project to delete the zeros was to be successful...The CBI is being successful in slowly helping the citizens become more and more reliant on these smaller category notes. …Is this not exactly what the CBI said they needed to happen when they say these larger 3 zero notes would remain and “coincide” with the smaller category notes?  So what the CBI set up is working. Only it takes time to take hold to the degree they need…   [post 1 of 2]

Adam Montana – Dinar Guru   We are just about through Ramadan, and this holiday has been a busy one. Historically, nothing significant has happened during Ramadan. To be more to the point, nothing at all usually happens during Ramadan…that has not been the case!  I won’t get into the “list” this morning, but Iraq has been very productive. Things are advancing!  Ramadan is over around the 4th of June (it’s different for some areas). Eid al fitr follows.  The bottom line for us is pretty simple… once Ramadan is over, there is a short following holiday, and then it’s “game on” for government and we are officially ready for big things. …OIL – saw a little dip, but still stable and trending solid. No worries there.

American Contractor – Dinar Guru   In Iraq, they’re articles written every day to mislead you…A week ago, I received information that the Iraq Central Bank (CBI) was distributing old banknotes.  This is a false story.  The CBI is not distributing any Iraqi dinar currency that is old or what you would consider lower denominations.

Mountain Goat – Dinar Guru   Article quote:  “The Central Bank of Iraq would like to inform all banks that IT IS CONTINUING TO PROVIDE THEM WITH SMALL GROUPS OF THE IRAQI CURRENCY by withdrawing the amounts from the current balances with this bank.”  These are the 250, 500 and 1000 categories but…they are adding back the 50 category. WOW! This is what we expected. The CBI is slowly phasing-in the other smaller category notes. Actually we expected the 100 category notes next… Will we get the others too shortly? Remember the 50 note is worth a nickel at 1190 rate (.050).

Mountain Goat – Dinar Guru   Article quote:  “The Central Bank of Iraq has launched the SIFP, which aims to create a regular PARTNERSHIP IN THE FINANCING AND INVESTMENT PROCESS BETWEEN TRADITIONAL AND ISLAMIC BANKS ON THE ONE HAND AND THE PUBLIC AND PRIVATE SECTORS ON THE OTHER HAND”   Now it seems to me they are “pulling out all stops” and going to take advantage of everything at their disposal to kickstart their economy. But we know the real reason for the stall. It is the currency. They know it too. Pressure, pressure and more pressure to get the currency reformed. Folks it is just a matter of time for us. Just sit back and relax. They must reinstate the currency soon…

MilitiaMan – Dinar Guru   Article:  “Parliamentary efforts to open the file “currency auction”   Having the Financial Law in place is nothing new…nor is it new this year per se, as it was enacted 01/13/2019. The key is the amendments were added now,  and are enacted. Get the point?  The action is about they have to cease the auctions as we know them to protect the new rate, imo…Wow!  The one way street is coming to the end. imo…

Guest Guru Future – Dinar Guru   Financial management law is part of the government preparation towards monetary reform...it is indeed a huge part of what we seek.

G-Lin – Dinar Guru   Article:  “The House of Representatives votes on the Financial Management Law and ends reading the amendment of the provincial and district elections law”   …This FML is a really big deal. It took them a very long time to accomplish it. Apparently over 23 meetings and hundreds of experts including international organizations…I likey.

Mountain Goat – Dinar Guru    …they are telling us the auctions (the traditional methods) are no longer appropriate for managing their currency.  …it is in the NEXT Phase in which they intend to implement the changes that effect the currency. I assure you it is coming and it may even come even before the end of the year 2020. I surely hope so. All we can is track the progress now of this effort.   [post 2 of 2]

Mountain Goat – Dinar Guru   Article quotes: “TO DEVELOP MECHANISMS TO CHANGE THE MONETARY AND MONETARY POLICIES IN THE COUNTRY, in coordination with the Central Bank of Iraq, AIMED AT RAISING THE DINAR EXCHANGE RATE”; “THE CHANGE WILL RAISE THE EXCHANGE RATE OF THE IRAQI DINAR AGAINST FOREIGN CURRENCIES”.  How will they do this change in the dinar?  Quote: “the Committee is keen to enact the LAW OF FINANCIAL ADMINISTRATION as it gives a complete road map of the financial policy in the country in terms of management of money and cash in the state.”  So we know that the Law of Financial Administration is now key and it does include this monetary change.   [post 1 of 2]

MilitiaMan – Dinar Guru   Article:  “The House of Representatives votes on the Federal Financial Management Act“   With the CBI talking about issuing small again from account balances, reeks of the Banks know the rate, as they would need to adjust for equivalency would they not?  Imo, they would now know since it passed and what it means. I could imagine the people will now start talking about it and even leaking it out to family, friends, neighbors, roof tops, etc…lol.

Adam Montana – Dinar Guru   [I understand oil is over $60 and Iraq has a lot of oil, but oil is only one of the variables…What about; – a fully seated government – HCL, Art 140, FML – IMF Art 8 – administrative and financial corruption – Iran interventionist – development of private sector – diversification of economy..]  OIL is indeed only one of the variables. We don’t need everything in the list to be perfectly checked off.  [It is quite Impressive the shear volume of good news coming out of Iraq lately.]  It IS impressive, and keeps getting better!

Guest Guru Future – Dinar Guru   Article:  “…The financial management law has been finalized”  Quote:  “A member of the Finance Committee Majida Tamimi confirmed on Thursday the finalization of the Financial Management Law.”  [They said they have voted on the FML but im not sure of the outcome]  yea said it was finalized but not sure how many readings we need and for it to become law.