Dinar Observer Daily

MilitiaMan – Dinar Guru   The AMF is complete in launching a special Index database for Iraqi Securities. They have it ready, as they calculated the index as being from 07/31/2019…

Chattels – Dinar Guru   [“which way you think this will pan out, do they delete our 3 zeros from the 25k note and we break even or do they delete the 3 zeros from the exchange rate that being 0.00084? then it would be 0.84 and let market forces take over?“]     I do not know. I have always argued/ allowed for the possibility of a “lop”.  It is a recurrent notion, indeed there will be rumors and the possibility of a “lop” until there is a definitive event of some type, eh?  The persistent debate regarding “lop” or “float” or “RV” have become tedious. I am invested and will stay the course at this point for better or worse.

Kaperoni – Dinar Guru  [I don’t care how it gains value as long as something happens!]  Well hopefully it will start in the next 3-6 months… Everyone…should be hoping that come the first of the year, the laws are passed and international investors are lined up to bring money into Iraq to rebuild and support a market economy.  …one thing is sure…Iraq expects 70 billion from private investors in 2020.  …70 billion USD is a lot of potential pressure for the CBI.  [post 3 of 3]

Kaperoni – Dinar Guru  [Ultimately isn’t it the CBI that makes the decisions?]  Yes the CBI has to do it.  But no because Iraq has to follow the Stand By Agreements they signed in exchange for loans over the years with the UN, IMF and WB…And the IMF became the Trustee of the CBI in Dec 2015 per agreement signed. Therefore, I see the IMF directives going forward.  And if you look at the success of the CBI since Dec 2015 their has been several successes including reducing the spread to within 2%, maintaining a stable exchange rate for over a year, and significant progress on money laundering.  [post 2 of 3]

Kaperoni – Dinar Guru…why would Iraq be working so hard to create a market economy and get private investment if they did not plan to follow the IMF directive to float the dinar?  I believe that is why we have not seen the CBI do anything as of yet…The conditions for the float are not in place…meaning the laws and investment.  …People tell me all the time…We don’t trust the IMF. Or what proof do we have the IMF is in charge. etc.  Well my question is…when has the IMF been wrong with Iraq? When has Iraq not done what they IMF asked?  [post 1 of 3]

Mountain Goat – Dinar Guru   We made it to September and still no reinstatement. However, we do know we are at the cusp of the launching of the second set of smaller categories, this time in coins. It is coming soon. Just remember what I have told you about the process of “deleting the zeros” and what exactly is involved…This process of “deleting the zeros” alone does not get us to the banks to exchange. …In fact it won’t really mean much to us in Iraq but it is an indicator to us of what is to follow. What will get us to the banks (and allow the banks to exchange) is the “reinstatement” of the Iraqi dinar on the global currency markets namely FOREX. There is nothing else that is going to allow us to exchange.

Kaperoni – Dinar Guru   People want to associate me with some float theory. It’s not a theory it’s what the IMF has specifically asked the CBI to prepare for in 2013. That is a fact and subsequently the CBI has been making significant changes with monetary policy and economic conditions to accommodate such a move. That is a fact. That is not my theory.

Adam Montana – Dinar Guru   I think it’s more important to have a “big picture” mentality. If you adopt that, you’ll realize that the more news we are seeing about “Oil and Gas”, which is precisely the topic we want to hear about… the more we hear about it, the more we are going to see the words “delay”, “issues”, etc.  My point is that if we are hearing those words more than we usually do… this is actually a GOOD thing.  It means they are paying attention, my friends. It means they are actually working on the important stuff. That’s enough to make me happy on this particular Wednesday.

MilitiaMan – Dinar Guru   Article:  “Parliament holds its first legislative session after 10 Muharram”  Quote:  “Chapter III will be dedicated to controversial laws that were not agreed upon during previous sessions, such as oil and gas laws and the abolition of the offices of general inspectors and the Federal Court and other laws,”   …they extend the session to apparently cover Mahdi’s past pledge to the people…to have the reforms done in the current legislative period…which falls within the next 7 days…That means to me they will have to have the reforms such as the Oil & Gas done before they end the current session, the next session begins after the 10th of September. That requires imo an international rate to be done and applied, hence, the extension has been noted publicly today. 

Kaperoni – Dinar Guru I still do not believe the CBI will make any monetary change until after the economic laws are in place and the budget is passed for 2020.  One thing I’m very certain is Article VIII is coming because that has been well laid out in the IMF Art IV Consultations and more importantly Iraq wants to activate the TIFA Agreement with the United States.  Freedom of movement of capital is a necessity.

Sandyf – Dinar Guru  […you are the first person that I have seen move the decimal points on the value of the dinar (1190 to 1.190) as opposed to the zeroes on the currency itself (25,000 to 25)]  It is effectively the same thing, depends if you are talking domestic or international. Within the country concerned dual pricing would come into effect. In the case of Iraq for example, a loaf of bread would be either 1000 dinar note of IQD or a 1 dinar note of the new currency. Internationally the IQD would no longer have any recognized value and the value of the new currency would start at 1000th of the IQD rate on the day the redenomination was implemented. Within Iraq the IQD would retain an equivalence of 1000:1 for a specified transition period and thereafter only exchangeable at a specific banks.

Mountain Goat – Dinar Guru   Article:  “HOW MUCH CURRENCY IS ALLOWED UNDER NEW RULES TO ENTER AND EXIT IRAQ?”   Quote:  “One of the decisions stipulates that “the entry and exit of amounts exceeding (1,000,000) (one million Iraqi dinars) is prohibited even if they have been declared, and the amount is withheld and legal proceedings are taken.” Oops they spilled the beans in this last paragraph of the article…  Now why in hell would they be restricting 1 million dinars when this is only about $1,000 USD? They just told us anything below $10,000 USD is not restricted in an earlier paragraph. So why then tell us in a later paragraph that 1 million dinars is restricted when the equivalent exchange in only equal to $1,000 USD? To me it should be acceptable if the rate was going to remain as it is today. Right? Am I missing something here? So maybe the rate is going to go to at least a busk [buck?] or more. Get it? This is one of those revealing articles.

MilitiaMan – Dinar Guru  Question:  “I DID ASK TBI BANK IF I CAN USE MASTER CARD ABROAD…ANSWER FROM TBI”  Answer: “you can use it in withdrawals from ATMs and direct purchase from the points of sale as well as in the Internet such as subscriptions and airline reservations, hotels, shopping sites and promotion in social networking pages in any country of the world except Brazil, Indonesia, Syria and Iran.”   Wow, Trade Bank is telling us they are international on a Friday when banks are closed… Fascinating…! …all the facts in place now are evidence the end results for the completion of Monetary Reforms is coming to a close! Yes, international cards being used from here on out from the looks of it…

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?