Dinar Observer Daily

 Dinar News Update  The 2019 Iraqi Budget was officially signed into LAW on Monday. Article: “The budget for Iraq for Fiscal Year 2019 officially became law on Monday with the signature of Iraqi President Barham Salih.”  This is a milestone that needed to happen for Iraq to be considered a functioning country.

Adam Montana – Dinar Guru   …I see that I didn’t explain why the HCL is important.    In a nutshell, it’s important to the Kurds so they get a fair share of oil revenue, and ties in very closely to their concerns on the budget. Both of those issues are melting away, right in front of our eyes.  With these two things lining up at the same time, we have the most perfect situation to see an RV that I’ve ever witnessed.  RIGHT NOW is an amazing time to be part of  this situation!

Kaperoni – Dinar Guru   …The dinar will never revalue or re-instate.  It is a process that will take time. Once they get off the peg and begin to float.

Mountain Goat – Dinar Guru   …We know that in order to conduct business with the rest of the world they must significantly increase the rate of exchange on the IQD when they do post it back.  Like I keep telling everyone – the VALUE is found in the Iraqi dinar it is just that the RATE does not now reflect the true value as it is being artificially suppressed due to sanctions. Oh – but we know that officially the sanctions have been “fully” lifted already since 2018. So what is the hold up then?  We know for a FACT that the month of January is the BEST (but not only) month to reinstate the dinar. We just witnessed two attempts to do it in January and both times the NSA (national security agency of the US) stopped it for security reasons. I am now hearing this was due to the sanctions imposed on Iran and that the US needs assurances in two areas before this can move ahead – 1)US forces are secure in Iraq;  2)trade with Iran will not be conducted in US dollars …This all I know and we are still in a waiting mode to how all of this gets sorted out.  [post 2 of 2]

Mountain Goat – Dinar Guru   We are waiting for the opening of the 2019 budget to begin the reconstruction. In doing so we are hoping this will also inspire the reinstatement of the dinar so investors feel comfortable coming into Iraq and investing knowing the currency is worth something and they can easily trade it outside Iraq. The updates to the investment law of 2015 are also in place and so investors can now more easily transfer funds in and out of Iraq under the law. There are also international mechanisms in place to facilitate this action. But one piece that is really needed is to have the Iraqi dinar once again listed on the global currency exchanges…It was not until the UN resolution in 2003 that ripped the IQD off the exchanges. Now they must get it listed back on.  [post 1 of 2]

Adam Montana – Dinar Guru   [With all that has happened they surely “can” RV and I as everyone want them to.  However, what will make them want to do it now vs a month, or say 6 Months from now?  What makes the trigger be pulled?]   One set of letters:   HCL. That, combined with the extremely positive budget. This is happening now, not 6 months ago, and not 6 months from now.

MilitiaMan – Dinar Guru  Article:  “Published the text of the Budget Law 2019 after the ratification of the President of the Republic”  Well, imo every citizen in Iraq, including the politicians are looking for the public announcement now on the results that should be found within the 2019 Budget.  The rate for many things and imo most likely HCL monies are in there, which has to be what everyone in the world that owns Dinar is waiting for… The citizens may get retroactive pay too…So by this and with Frank’s opinion (among others) everything is done and we await for it to come to us.

Adam Montana – Dinar Guru   If you’re not already squirming, let me tell you – this is awesome news. A happy GOI is a GOI that we can get behind, because it’s one that is more likely to RV. And this is possibly the happiest we’ve ever seen them! …we have more…I’m trying to contain my excitement…We may have an HCL agreement shortly!  …THIS is the kind of movement we need to see for an RV to happen, and I didn’t want to release the news without a full confirmation…you know I’ve been on an “HCL-requirement” …No HCL = no RV…and now, after a long ride, it’s not just on the horizon – it’s coming at us, lights flashing and horns blaring! … the time that we have been waiting on may be over. There is news out right now that is more encouraging regarding the HCL than ANYTHING I have ever seen, and that means we’re almost there. [post 2 of 2]

Kaperoni – Dinar Guru   Huge juice this morning…the US Treasury acknowledges they are ready to support Iraq and Kurdistan in promoting a market economy.   This announcement is probably the best news that Iraq is ready to open up to the worlds financial system.

Adam Montana – Dinar Guru   …the stars are lining up very nicely right now.  …First, the budget was submitted, signed, and looks like it will be passed, with a HUGE keynote – a significantly acceptable portion of the budget going to the Kurds. This has been a major point of contention between the parties over the years, in fact it’s possibly the biggest point of disagreement and reason for delays in the budget approval process in recent history. …the budget…needs to be published in the Gazette to be official. This may be happening yet this week, and if it does…that will be insanely quick. [post 1 of 2]

Kaperoni – Dinar Guru   So the 2019 budget was signed into law today…those hoping for a RV or some other overnight change in value as a result will be disappointed.  Not how it works…

Adam Montana – Dinar Guru  Article:  “The President of the Republic approves the Federal Budget Law”  [Hope it doesn’t take 2 weeks to get published in the gazette…]  …the timing of this publication will be very important…

MilitiaMan – Dinar Guru   Article:  “Central Bank: We bought 20 trillion treasury transfers to move the market”  Quote: “With the increasing confidence of international banks in the Central Bank of Iraq and the lifting of restrictions and barriers”  I really do think this article is massive in that it shows they are ready to defend their new currency!! They have now told us they are ready to go live with an international exchange company that will be traded on the Iraq Stock Exchange…In addition… we see the lifting or restrictions from the CBI directly. The CBI is talking very loud…imo.  Well, them telling us they have lifted restrictions and now having populated them selves with 20 Trillion in treasuries to support their currency, it is all but go time. imo.

Dinar News Update –  The 2019 Iraqi Budget was officially signed into LAW on Monday. Article: “The budget for Iraq for Fiscal Year 2019 officially became law on Monday with the signature of Iraqi President Barham Salih.”  This is a milestone that needed to happen for Iraq to be considered a functioning country.  Stay tuned as the gurus chime in on the importance of the budget law to a possible increase in the value of the dinar...  The latest guru posts will continue below.

Kirk H. Sowell – Noted Author   So after a long delay, today [Monday] Iraqi President…signs the 2019 budget into law. The delay was due to parliament wanting to make amendments to the budget after it was “passed” on Jan. 24. They just sent it to Salih two days ago.

RVAlready – Dinar Guru   About the only thing Trump has ever said is that prosperity is coming. Just as Bill Clinton never mentioned Kuwait in public, I doubt that Trump will ever mention The Iraq RV in public….. There are …people who made good money from the Kuwait revaluation, but it was never announced in public.

BGG ~ This is not realistic commentary… it implies some corollary between President Clinton, the Kuwaiti Dinar reinstatement and President Trump and a potential Iraqi Dinar move. Nothing could be farther from the truth. In fact, we have PLAINLY published the FACTS surrounding the Kuwaiti reinstatement over and over and over. It was nothing like the various rumors portrayed on the internet ( #FAKENEWS ).

Any comments made by President Trump regarding prosperity are tied directly to his policies and have nothing to do with any future value change of the Iraqi Dinar. Value change or no – the math just doesn’t add up. A massive change in Dinar value doesn’t even bump the needle of the US financial engine.

Mountain Goat – Dinar Guru   I do find is weird how the CBI has NOT given us an update on the “project to delete the zeros” for over three months. They normally give us an update each month. So we can expect one soon. We know for a fact that the CBI has already contracted with a German firm to print the smaller category notes. Also the coins are already stamped are waiting for distribution. So this is VERY close.   What are they waiting for to finally launch the reinstatement?  I believe it is political stability (get govt fully formed) and the elimination of the harmful Iranian influence (in the govt matters).   [post 2 of 2]

Mountain Goat – Dinar Guru   …It is like we are in a holding pattern, ready for takeoff but just not yet. The CBI has not given any indication whatsoever of targeting a reinstatement this week or any day soon. But we know it is waiting in the wings. I am waiting to see how this all plays out with the completion of the election process. We know from a recent article that completing his process is VERY important for the CBI as it can demonstrate STABILITY or INSTABILITY, depending on what direction it takes.  [post 1 of 2]

Adam Montana – Dinar Guru   …I’ve been on hold all week regarding this HCL news.  It hasn’t fallen through, and that means it’s possibly going through…With any luck, this HCL news is going to materialize…Fingers crossed!

MilitiaMan – Dinar Guru  Articles:  “ASSOCIATION OF EXCHANGE COMPANIES IN IRAQ ASPIRATIONS AND CHALLENGES”; “The House of Representatives sends the Budget Law to the Presidency for approval”   Tomorrow is the beginning of the week.. The money ex-changers are going to need the rate, that rate also precedes the budget.. They clearly have this timed.. Today the articles about Jordan, money ex-changers with NGSs to help facilitate the implementation of the new.. All very well timed.. It won’t stop now nor fail imo…

Mountain Goat – Dinar Guru   [I’m still confused how/why they tried to RI without the gas law and the full government seated, as you have stated several times we need?]   HCL is in parts. Most of it already passed but not implemented to the level it should.

Adam Montana – Dinar Guru   Question: Is Iraq going to “lop”?  Iraq has already made strong progress in rebuilding and obtaining international credit. They do not have an emergency situation, like Zimbabwe or Venezuela. In fact, Iraqs international credit is rated across the board as “B grade” and “Stable”.  Iraq has already made tons of progress here. A lop is not going to enhance that. The CBI already controls the currency market. There is no need for further action.  Iraqs most recent inflation was measured at about 2% – almost identical to the United States. We are not talking about Zimbabwe here!  Multiple currencies are used in Iraq, but there are no threats of replacing the Iraqi Dinar…Since 1960, only 71 cases of lopping have occurred…None of those countries are Iraq, have Iraq’s resources, have Iraq’s potential…Pretty solid evidence that a lop is a pretty low probability event for us here, don’t you think?

Adam Montana – Dinar Guru   …these things are:  1.  RV (ReValue)  2.  Lop (remove some zeros, either from the exchange rate or the denominations)  3.  Nothing.   …my opinion of our possible outcomes in this situation is this: 79% chance we see a change in the value upwards in the near future. 20% chance they do nothing other than maintain the status quo (for now). And a slight 1% chance of a lop. Personally…I like love those odds, and I’m sticking it out. I’m also preparing for the eventual change in value…  [post 2 of 2]

Adam Montana – Dinar Guru   Question: Is Iraq going to “lop”? In the case of Iraq, one of 3 things is going to happen eventually, with “eventually” being either immediately, next week, or maybe a year from now. There is no “deadline” that they are bound to, nor will there ever be one in the current political and economic climate. Certainly there will be factors that could encourage Iraq to move faster or bide their time, but there is no entity or force on the planet that can force Iraq to make any changes to their monetary policy. Like I said at the start, Iraq will do one of three things…   [post 1 of 2]

Kaperoni – Dinar Guru    Several articles have surfaced the last few days implying Iraq plans to open their economy to the world in the ‘next phase’ or ‘next stage.’ I caution those who think that may be within a week or so.  It still could be months. Iraq still has numerous laws to pass or make changes too to invite investment. Parliament is on a break and the next session may not be enough time to pass the needed legislation.  A critical piece of the puzzle is coming up February 10-11.  Iraqi Finance 2019 could give us some needed time-frames as Iraq continues to transition to a market economy.

Mountain Goat – Dinar Guru   Article:  “REVEALED: REASONS FOR DELAYING THE MOVE TO IMPROVE THE INVESTMENT ENVIRONMENT AND THE PRIVATE SECTOR IN IRAQ”  Quote:   “delayed DUE TO CONCERN ABOUT THE ELECTIONS AND AFTER THE FORMATION OF THE GOVERNMENT,” stressing that “in the coming days will witness the actual beginning of the application of these procedures.”  …this…paragraph …is probably the most important of all.  So we just have to sit tight and wait to see what they do.

BGG –   …IMF Article 8 and UN CHAPTER 7 are completely different issues. UN Chapter 7 was a series of UN sanctions stemming from the Gulf War era… IMF Article 14 is a set of obligations and responsibilities which Iraq has accepted and complied with (monetary policy wise) – Once they demonstrate they are fully able, they should accept and move on into Article 8 (from Article 14) – which is a different set of responsibilities and obligations. All of which will be done with IMF oversight and guidance.

MilitiaMan – Dinar Guru   Article:  “The next stage will witness great economic openness on the regional and global environment” Quote:  “the most important items that were added to the law of the general budget 2019, and is likely to arrive in less than two days to the government and the Presidency of the Republic for ratification and start to apply.”  No going back from here imo. We are going to get paid. imo. Lets keep in mind the article suggests the Ratification is within two days…real close… imo.

Phillyman – Dinar Guru   Article:  “Abdul Mahdi: The next stage will witness a great economic openness to the world”  Quote:  “For his part, Abdul-Mahdi said that “the next phase will witness great economic openness on the regional and global environment. Within two days, an important agreement will be implemented with Jordan on the export of oil and the opening of Trebil.”   …I continue to follow the news and believe that Iraq despite its battles with corruption and the conflicts in the region is going to make major moves forward economically.

Adam Montana – Dinar Guru   We’re on the cusp of a good number of significant possibilities, so I’m not ruling anything out…we have some REAL good news coming soon…Good things come to those that wait, and it’s looking like we’ve all waited about long enough… things are coming for us.