Dinar Observer Daily

Kaperoni – Dinar Guru   …they can never stop the auctions until two things are accomplished. 1. They float the currency, 2. they move to Article VIII.

Kaperoni – Dinar Guru    So as of now, the CBI has met the 2% rule for a year and there is no MCP…They are in compliance.  Part of compliance to get out of Article XIV to Article VIII is the ability to control that.   So the IMF requires that before they could move to Article VIII.   …the CBI cannot stop the auctions until it has something to replace it with. The auctions are the CBI’s source of revenue. The replacement is the float which allows the CBI to then buy/sell its currency on the world market like any other country that floats…

Adam Montana – Dinar Guru  We all know that it won’t just be us little investors and Iraq that benefits from a change in the Iraqi Dinar.Every country that has physical dinar in their reserves, or any kind of trade alliance with Iraq, will also benefit.  That’s one piece of the puzzle, and an important one, but what’s even more important is the overall picture… which just keeps getting better and better.  Iraq’s reserves reporting positive news:  “CBI News 03/20/2019  Annual Report of the performance of foreign reserves of the Central Bank of Iraq”   Quote:  “Iraq’s foreign reserves rise 32.6% last year Central Bank of Iraq”  Iraq could not ask for a better scenario under which to increase the value of their currency.  [post 2 of 2]

Adam Montana – Dinar Guru   I’ve been saying for a couple months now that oil to ~$60 was what I want to see. This is not because $60 is a “magic number”, so even though we *almost* hit $60 this week ($59.85 I think!!!), I’m going to state that the oil price is “close enough” and we are officially in the GREEN ZONE on that aspect.  A declining price in oil would have made the RV-Button-Pushers pull back. That didn’t happen.  A sudden spike to $60 would have urged no action, because a sudden pullback would have been expected. That didn’t happen either!  What we have been seeing in the price of oil is a steady climb, very controlled and consistent, towards the $60 mark.   …Keep in mind that the OPEC oil production limitation agreement that virtually every OPEC country/member has signed onto, with the exception of Iraq, is largely responsible for this controlled growth…  [post 1 of 2]

Mountain Goat – Dinar Guru  Article:  “INTEGRITY COMMISSION ON TUESDAY, IT WAS ABLE TO CONTROL CASES OF MANIPULATION IN THE SALE OF CURRENCY”   Quote:  “THE CHANGE WILL BE MADE BY RAISING THE EXCHANGE RATE OF THE IRAQI DINAR AGAINST FOREIGN CURRENCIES”.   What did they just tell us…?  They are going ahead with the currency reform.  Also I want to point out we keep getting article after article on how Iraq needs investors to come into Iraq, yet they can’t without a FREE FLOW of capital and you can’t have a FREE FLOW OF CAPITAL using the currency auctions. This would be disastrous for Iraq.   So they need to go international and they need to raise the value in the process or it will not work. It is all interconnected and it is time to get it done- not later but NOW!

Mountain Goat – Dinar Guru   We know that when these last ministers are voted in this will complete the government. We have been told that the government must be completed and stable prior to any reinstatement. This has been a major requirement over the years. I am not saying this is the ONLY requirement.  We also know that there is still major corruption with the currency. How much of it is fixed and to what extent we do not yet know. But this too was told to us all that it would hold up the project to delete the zeros. Could it be fixed enough now?

Kaperoni – Dinar Guru  …two articles…confirm the plan for the currency as we have said for years.  It will not RV or RI, but will gradually rise over time via float.  These articles are simply stating that the government is going to begin to take action (like passing laws) which will have an effect on the CBI (and exchange rate).  IMO, Still weeks maybe months.  Exciting news for sure but this still takes time.  First we need the laws, then the investors/investment, then pressure on the capital account at the CBI, then the float to offset that pressure. Remember…the CBI is in control of monetary policy.  And the government is in control of activating investment/investors.  The tool the CBI uses to combat inflation is to float the dinar.  This all takes time.

Larrykn – Dinar Guru    I don’t care how it comes out to be honest just come out…it would raise to how the investments come in.  I don’t think it would take forever to get to where we can make money.  I find it interesting how Iraq is buying gold for their reserve. that would also help with their currency and stability.  …it has been a long road but they also have made a lot of progress too…not saying they don’t have a ways to go but someday there will be a finish line. Hopefully not that far away, time will tell.

MilitiaMan – Dinar Guru   …we are in a very good place within the place we are in now with MRs. Add in Mahdi is in Cairo with Jordan tomorrow… Egypt and Jordan are huge trading partners. Is Mahdi getting accolades, from possibly what he did today the 21st of March at the beginning of Norouz holiday to end at the end of the holiday, just as the neighbor  [Kuwait?] did in 1991?  Well time will tell, but, be sure imo things are in alignment as far as I can tell…

Kaperoni – Dinar Guru   [Does pegging the American dollar to the dinar make the dinar go up in value faster ?]  When its pegged it can’t go anywhere.  The primary reason they do this is for stability which is a condition under IMF Article XIV.

Breitling – Dinar Guru  Iraq needs the price per barrel to be at $57 to pay for their economy.  But to pull it out of the ground is much cheaper…they’re probably pulling it out of the group for $9 or $10 per barrel and then putting it on the market and the market price is $57.

David M. Witty – Dinar Guru   Iraqi MP from Fatah Coalition says Parliament’s schedule for next week does not contain a vote on vacant cabinet positions. However, he thinks there will be a vote in the following week. Still disagreements among political blocs about cabinet positions.

Breitling – Dinar Guru  Question:  What do the Iraqi’s need to finish for it to revalue?  As far as legislation and policy absolutely nothing… I still don’t understand why they haven’t revalued or simply haven’t started adding value to it.  I don’t understand that…the real price of the Iraqi dinar comes from the CBI.  That’s all you need to know.

MilitiaMan – Dinar Guru   Article:  “Parliamentary move to raise the price of the dinar and maintain the stability of inflation” Quote:  “the change will raise the exchange rate of the Iraqi dinar against foreign currencies”  The wording “the change will” means it is going to happen! They are moving on it now, imo, effectively. … EXCITING TIMES FOLKS…

Mountain Goat – Dinar Guru    Also I want to remind you that…parliament passed the law to allow more independency in the CBI, not that legally they don’t already have it. But when the GOI keeps holding them back, they needed this law to get over all this corruption.  After reading this article I really think that parliament is going to go over the PM and get it done with the CBI. So I would consider this one of those WOW! articles.   [post 2 of 2]

Mountain Goat – Dinar Guru   I need everyone to take a deep breath and hold on to your seats. We…have one article in particular that is simply amazing and warrants getting the champagne back in the frig. It is one of these “WOW!” articles. We have not had this kind of news in a very long time…   Article:  “PARLIAMENTARY FINANCE COMMITTEE IS DEVELOPING MECHANISMS TO CHANGE THE COUNTRY’S FISCAL AND MONETARY POLICIES IN COORDINATION WITH THE CENTRAL BANK OF IRAQ”   So here is it in black and white, the news of the RV we have been waiting for in anticipation...Just like I told you… It will all surface when they are ready to do it.  Now they are ready.  [post 1 of 2]

Frank26 – Dinar Guru SOMETHING HAPPENED TODAY AND OUR NEWSHOUNDS ARE BRINGING IT TO YOU...IT IS VERY SIGNIFICANT.  Article:  “Parliamentary move to raise the price of the dinar and maintain the stability of inflation” Quotes:  “The Parliamentary Finance Committee is moving in the current legislative session 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 and maintaining the stability of inflation.“;    “the change will raise the exchange rate of the Iraqi dinar against foreign currencies while maintaining the stability of inflation In the country“.

Mountain Goat – Dinar Guru   Article:  “THE PAPER AND METAL CURRENCY AFTER 2003, WHICH DID NOT SUCCEED IN TRADING AND WAS CANCELED”  I would consider this an early phase of educating the citizens about the currency. Remember that in 2015 coming close to January 2016, the CBI told us they wanted launch the 100 coins but later decided not to. ...I believe they are getting ready to launch these 25, 50 and 100 very soon and are telling the citizens to watch out for the “cancelled” 50 dinar notes from 2003 no longer valid and that here are the pictures of the coins that are valid and coming soon. This is PERFECT too since we know that are going to slowly launch these smaller categories as the market dictates…

Mountain Goat – Dinar Guru   …when they think that the CBI has the adequate reserves (and other things) this will give the CBI sound reasoning to go for the reinstatement. In one of the articles today once again they told us they would the “3.3” ($3.30) rate back to the dinar. …they will probably go beyond that. I quote from the article… “Iraqi state budget was 11 billion dollars and the exchange rate of the dollar 3.3 and today the state budget 450 billion and the exchange rate of the dollar is 1189 dinars.” I think we could possibly be in a window…  [post 2 of 2]

Mountain Goat – Dinar Guru   “WHENEVER A RESERVE OF HARD CURRENCY IS INCREASED IN THE STATE TREASURY, THE VALUE OF THE LOCAL CURRENCY RISES.”   WOW! Could this also be yet another reason why the CBI is waiting to RI? They need for the reserves to increase?  Remember that when Dr Shabibi was about the RI way back in Jan 2013, the CBI reserves where at a all time high of 90+ billion. We know the war with ISIS has brought the CBI reserves down to a dangerous level of about 45 billion. Last we hear the reserves recovered and were about 60+ billion and climbing...   [post 1 of 2]

Don961 – Dinar Guru   Article:  “Al-Araji: Sadr may launch a project against the government of Abdul Mahdi and Abadi will return”   Quote:  “The political ground is ready for Sadr’s reform project,” he said, adding that “there is political and popular discontent towards the government of Abdul Mahdi.” He added that “Abdul-Mahdi does not have the tools to implement his government program” “He said.

David M. Witty – Dinar Guru  In Iraq, source close to Muqtada Sadr says Sadr considers PM Abdel-Mahdi a failure & that his government will likely fall soon. Sadr is signalling this to political blocs. PM has done nothing. 

Mountain Goat – Dinar Guru   The news pouring out of Iraq now is all about Iranian influence and how it is negatively effecting Iraq and the currency reform process. When we see such a number of articles concentrating all on the same topic, we can see clearly that this is what they are working on now and need to resolve. …This area I totally see how it is impacting on holding back the currency reform, the project to delete the zeros and the reinstatement and so it got my attention. We may be coming to an end to this fiasco of holding back the reinstatement after all if this newest effort will work. So, we sit tight and wait for anticipation.

Mountain Goat – Dinar Guru   Article:  “COOPERATION OF AMERICAN COMPANIES TO ENTER IRAQ, ESPECIALLY IN FOUR PROVINCES” Quote: “This year will see a great opening and a clear renaissance in the country.”  This is all fine but how will the companies transfer funds in and out of Iraq? Will they want to convert dinars to US dollars in the currency auctions? I don’t think so…They will want to do through the banking process and they use FOREX. Oh – but the rate is not yet on FOREX.

Larrykn – Dinar Guru    the pressure on the CBI is a good thing…they talk about opening the ATM machines to pay salaries and such.  If we look at the destruction that happen over there I believe they need more banks with ATM so the customers can get to their money, this will take time and this might be the reason they are taking their time. but then again the seating of the rest of the cabinet might be part of that too.  I’m just not sure that is a requirement for Iraq to move forward.  We will see, soon.  I hear parliament will meet again on the 23rd, we can only hope they can get them seated.

Kaperoni – Dinar Guru  Folks need to understand, Iraq is not going to raise the value of their currency arbitrarily.  If it goes up in value it will be because the world helped Iraq rebuild and prosper.  New central bank article today calling on the politicians to stimulate the real sectors of the country putting pressure on the CBI.  This is what I have been saying all along!

Larrykn – Dinar Guru   they have raised their currency one time since they were put of the artificial rate that went from 3000 to 1200…they have floated with the dollar since then.  once they go into Art 8 and come out to the world…that all will change…

Chattels – Dinar Guru  [So,will the GOI be completed today?]  Parliament adjourned until the 23rd the last that I saw/read.

Kaperoni – Dinar Guru   …substantial investment will cause pressure on the CBI. This is why the CBI needs a tool to counter such. That tool is the a liberal exchange rate regime (float) to allow the gradual appreciation of the currency to offset such pressure.   …look at the bigger picture…Iraq needs investors/investment …billions of dollars to rebuild, create a market economy.  That will create economic pressure and the solution to that is to raise the value.   [post 2 of 2]

Kaperoni – Dinar Guru  Iraq needs to complete the government and parliament needs to pass the laws before it can open up to investors/investment.  Nobody coming otherwise.   [Can all of that be done in a short time?]   Sure if they decide to do it.  But they have shown they are lazy and don’t want to accomplish much.  Time will tell…and pressure is on them to open the economy.  [post 1 of 2]