Dinar Observer Daily

Adam Montana – Dinar Guru     There’s a lot of talk right now from the gurusphere… Article IV of the IMF, Article 140 with Iraq, HCL, Article VIII…The interesting thing about all this new Guru stuff out there? They are actually on the right path, for once… The IMF, GOI, and a few other sources are putting out some VERY high profile talk right now, and it’s too hot to ignore. We all know I can’t predict the date or the rate, so I won’t try… but I’ll say this again:  It’s too hot to ignore right now.  I am REALLY looking forward to some further developments on the latest, because I can’t remember the last time we had THIS much good stuff brewing all at the same time.  

Adam Montana – Dinar Guru   [They’ve come a long way since their 1st election in 2005…they still have a long road ahead. Recent developments will help smooth out some of the rougher bumps in the road.]   I think thy have a long road ahead BUT that is going to be the case regardless of when they change the value…

Jeff – Dinar Investor    …I’ve got an article showing…how Iraq has engaged in a Memorandum of Understanding with the U.N. to do the reconstruction in liberated areas…So this is just more proof showing you were at the end of the ride...  And remember Art. 140, which…some of it is giving restitution to the Kurdistan people/citizens …there’s money allocated for Art. 140 inside the 2019 budget.  That shows you Iraq has full intentions of changing the rate this year, in 2019 not 2020.   [post 3 of 3]

Jeff – Dinar Investor    …The reconstruction from the war has been outstanding for over 1 1/2 yrs. …because they can only use 1 currency to pay for it…the dinar.  The reason they have not pushed forward & restarted reconstruction is simply because their currency is not internationally recognized… It’s that simple…how can they pay outside contractors…to pay for it?  …They can’t.  They simply have to wait until it is internationally recognized which means they have to wait until the rate change occurs and their currency becomes internationally recognized.  [post 2 of 3]

Jeff – Dinar Investor   …Last weekend you had a chance  to see the IMF Article 4 consultation and inside of that it had comments about Iraq transitioning into Art. VIII and showing you how Iraq is currently under Art. VIII rules and guidelines per the IMF …that’s because Iraq’s got training wheels on right now transitioning into Art. VIII and they have been at that step for at least a year now.  And one of the key things you saw was that Iraq is under a single currency practice, MCP, which means they can only use 1 currency, their native currency, the Iraqi dinar.   [post 1 of 3]

Mountain Goat – Dinar Guru   Article: “IMF EXECUTIVE BOARD CONCLUDES 2019 ARTICLE IV CONSULTATION WITH IRAQ”   this also is WOW news!  This consultation was supposed to happen last Sept but was postponed due to not having the government fully in place. So now that we see this article on the results of it, we know that the IMF is satisfied with what government is formed and we can conclude for all practical purposes it is done…This is a very good indicator as to where we are. But is there anything else they need to get done? Also…they project such a high GDP in 2020? How will they accomplish this change in GDP without a real rate of their currency?

Breitling – Dinar Guru    …Trump is bitching about the Federal Reserve.  Why? Because all these countries are artificially lowering the value of their currencies so they can compete with one another…Trump is like, ‘Hey, we need to do that too or we’re going to get hurt here.’…Trump can’t get the Federal Reserve to lower the value of the currency  [U.S. Dollar]…the idea that the president has control over the currency, well that stops that debate right?  He’s begging them to lower interest rates.  So Trump doesn’t have control over our currency of whether it goes up or down he sure as shit doesn’t have control of Iraq’s currency does he?  So that will give you a clue of the reality of it…

Kaperoni – Dinar Guru    Iran announced today they are changing currencies from the Riyal to the Tuman and deleting 4 zeros.  That’s a Lop because of failed monetary policy.  Iraq is different because monetary policy has been a success in Iraq.

Breitling – Dinar Guru    [Question…”…it would seem Trump will be in office until 2024…how does that effect our situation with the dinar?”]  …The reason why it’s a good place for Iraq right now is because what’s on the table…Trump’s style is that you are not going to sit on the fence.  ‘Either you pivot toward us or you’re not going to participate’…next thing you know…Iraq is not sitting on the fence.  They’re like ‘no, we want to be in the markets.’  So things have changed in the Middle East.  That’s why you saw these laws being passed in Iraq.  The Financial Management Bill.  Then all of a sudden they’re not just throwing out BS article out on the IMF…Iraq Stock Exchange going on the NASDAQ.  They’re having mega events for it…why?  Cause the markets are opening up to them…it’s a big deal.  And they’re very very happy.  That’s why they’re walking around with a little bit more energy.  And it’s a huge deal for us.  They are going to add value to their currency…

Vital Brad – Dinar Guru  …there’s certain stipulations that need to be completed for them to reinstate their currency.  Information I got here says, ‘Iraq continues to avail itself of the transitional arrangements under article 14 section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article 14 section 2 and currently maintains one multiple currency practice (MCP) subject to fund approval under article VIII section 3.1.’ So Article VIII has stipulated that Iraq can only use one currency, Iraqi dinar.  And meeting these requirements allows for the opportunity to change the exchange rate.  So some exciting things coming out. There’s people out there saying that this thing is months and months away.  You and I like to keep a long-term perspective rather than it’s next week…but all the things that are happening…these final details are being put into place that can allow for this to happen… 

Mountain Goat – Dinar Guru   As we exit July, we still do not see any reinstatement of the Iraq currency. But we know it is very close at hand and I believe maybe even being held up for some reason now.

Vital Brad – Dinar Guru    …with the article that came out saying they’re ready to implement article 140…They’re saying they’re ready to pay back citizens. They’re ready to pay back for lost property, lost wages, lost opportunity.  Where’s the money coming from?…definitely want to pay attention to article 140…

Kaperoni – Dinar Guru   An article…stated they will have a 72 trillion dinar deficit. In other words they are building about 70 billion USD extra into the budget that is expected to be funded by foreign investment.  In order for this to succeed, they must pass the laws needed, and open the banking system (Article VIII) for this to work. There is no alternative. The next 6 months will be fun to watch…  [post 2 of 2]

Kaperoni – Dinar Guru  Parliament is in the process of preparing the 2020 budget. Described in the media as “the budget will be different directions next year to represent the government’s economic openness to investment and increase financial resources alternative to oil” and “indicating that the budget will create a qualitative boom in the Iraqi economy through drastic changes in public expenditure and investment funds and services.” Clearly this is important to the transition to a market economy…As well as they are building the expenditure into the budget for 2020. [post 1 of 2….stay tuned]

Kaperoni – Dinar Guru    Article VIII is absolutely necessary to invite investors and capital to Iraq. They will not get much help rebuilding the private sector if they do not do this.  Investors want to be able to get their profits out of Iraq and Article VIII is an important step to achieve this.

RVAlready – Dinar Guru    Just like Kuwait, Iraq will deny this is happening until after it happens. Do not expect advance confirmation of anything.

Kaperoni – Dinar Guru   The once [one?] restriction appears to be a combination of the CBI requiring participants in the auction to have a bank account, and also the 2% spread. It does say the IMF is monitoring the situation. It does seem to be something that can be resolved fairly quickly if need be and it will be interesting to see what the IMF says in the future on this since the CBI has meet the 2% spread rule for the past 16+ months.  [post 2 of 2]

EHankins – Dinar Guru​  Iraq is article 8… They have practiced it for nearly a year now. there is no fear they just need to speak it into the world...

Future – Dinar Guru   “Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices…”    …tells us Iraq restrictions have been removed…its time for the transition to article 8…article 14 is no longer needed…lets hope and pray they are confident enough to make that jump sooner rather than later.

Kaperoni – Dinar Guru   …Iraq has been clear of restrictions under Article XIV for some time, but still has one restriction under Article VIII they must overcome before they can officially accept Article VIII.

Mountain Goat – Dinar Guru    Article:  “REVEALED 17 CORRUPTION SUSPICIONS THAT HAVE PLAGUED IRAQ’S CENTRAL BANK OVER THE PAST YEARS”    So ending this issue of corruption is not as simple as some…tell you…they say, just RV, and the auctions go away and the corruption ends. Folks it is not that simple then to get the reinstatement (thus eventually a significant rate change we want) when there are billions being stolen. The longer it goes on the longer it will take to stop it. Remember that Dr Shabibi told us in a news media interview after the fact that the CBI had an “unprecedented opportunity” in 2013 to reinstate the dinar and end all this corruption but the corrupt politicians stopped it and reprevented it. This has been the case ever since…

Delta – Dinar Guru   FROM IMF REPORT:  “Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any exchange restrictions or multiple currency practices subject to Article XIV, Section 2, and currently maintains one multiple currency practice (MCP) subject to Fund approval under Article VIII, Section 3.1”  BYE  BYE ARTICLE Article XIV …WELCOME ARTICLE VIII.

Chattels – Dinar Guru  Article: “IMF Executive Board Concludes 2019 Article IV Consultation with Iraq”  Nothing we have not heard before in this recent report, IMO. Iraq continues to have substantial shortcomings in various financial arenas. A cautionary tale of real problems and possible betterment. Tune in next year.

Delta – Dinar Guru  NOT OFFICIAL YET……. PARLIAMENT HAVE TO APPROVE HIM [New CBI Governor] FIRST….. ALAQ IS STILL IN UNTIL THEN…

Michael Cottrell – Guest Guru   [People want to know if you feel we are close to the reset and the revaluation?]    I hadn’t seen any progress in 15 years…since Trump got into office I have seen a tremendous amount of progress…Right now its like a landslide…its been picking up momentum…yes I think we are right on top of it… 

Larrykn – Dinar Guru   I understand the corruption in Iraq but I get to wonder if that will really stop them from moving on. They have always been corrupt but they seem to have manage to have their currency out to the world. The one thing that has change this time around is the fact that they have outside investor coming in. This IMO is the game changer and is why they are trying to get a handle on the corruption in Iraq. If they do I see a bright future for them if they don’t. We will be sitting here. No one will want to invest in a country that they wouldn’t know if their money is safe or not and they can get it out. We will see.

Mountain Goat – Dinar Guru    The FACT is that parliament is NOT going to let the CBI run itself and function totally independent with all the corruption going on within it.  This is a simple FACT…They already passed the “Financial Management Law” and within it makes them able to monitor and tell the CBI what to do. One aspect is first to get rid of the proxy positions within. This is now happening. Then they need to work on ending these currency auctions in a matter of however they do it.

Kaperoni – Dinar Guru    This is not speculation.  If you go back and look at the last Article IV consultation which might have been in 2016 or 17 they specifically said in there that they should accept article VIII to send a message to the world that Iraq’s banking system is open for business…Of course the dinar wasn’t in compliance then so they couldn’t.  The step holding them back was the ability to sustain and manage the currency for 90 days or more and its been 16 17 months now.  They have met the criteria.  They just need to write the letter…If they want the money and they want the investment.  And they want to rebuild they gotta put on the boots and jump across the pond… [Post 2 of 2]

Kaperoni – Dinar Guru    [Question:  Does the IMF have to invite Iraq into Article VIII or has the invitation been out there since the IMF has been working with Iraq?]  …They are not necessarily “invited” but they are in Article XIV…a developmental put your procedures in place and prove your abilities to manage money and to manage monetary policy.   It’s at a lesser level than Article VIII…There’s no specific time frame but…they’re supposed to be ‘constantly striving to move into Article VIII‘.  And they’re not going to get the benefits of Article VIII until they do.  If they remain in Article XIV the banking system remains closed because it’s a risky venture to engage with their banking system.  [Post 1 of 2]

Mountain Goat – Dinar Guru   Article:  “IRAQ: SIGNING OF A NEW AGREEMENT WITH THE US STOCK EXCHANGE ON THE TECHNOLOGY OF TRADING AND DEPOSIT SECURITIES”  If they were not going to relist (reinstate) the Iraqi dinar on FOREX then why …would they be getting all this Nasdaq technology synced up? Trading the ISX on Nasdaq can not happen without the reinstatement of the dinar on FOREX first. Get it? This is a FACT not my opinion. The placeholder for the IQD is already established on FOREX and we are waiting for the rate to pop in.