Dinar Observer Daily

Kaperoni – Dinar Guru   From what I am reading today it sounds like parliament passed the budget today at the 7pm session.  Need more confirmation but looks like good news.

Breitling – Dinar Guru  …the price per barrel has gone down a lot faster than what they anticipated.  And the United States is taking over the world market faster than anticipated…remember their [Iraq’s] bottom line is $54-$55 per barrel Brent Price…What happens to their country when they need more?  Guess what that goalpost moves and they are going to need more money…Article “U.S. could soon pump more crude than Saudis can at their peak”…we are moving a lot faster than we thought we were going to…this should make you happy.  That’s good news.  That’s super good news…that’s what I love about the information coming out of the oil industry.  Because it means everything for us.  You should be very very happy.

MilitiaMan – Dinar Guru   Article:  “Abdul Mahdi “comfortable” for his long stay on the head of the interior and defense .. Sadr does not mind”  This is very good news…Now that that is effectively settled imo, the next move is the rate announcement before the budget…??   hmm we shall see and possibly before they vote on Wednesday or Thursday. Gotta vote on what it is in it right?  So now that he (Mahdi)  has Sadr on the deck allowing Mahdi to head the Interior and Defense, he can now focus on the announcement of not only his first 100 days but, what the citizens want to hear about the CBI the future of their new money…imo…We shall see…That is not something to take lightly… We know Mahdi can make the Art 8 announcement and it would be a very appropriate time to do so…imo.. Let see how it rolls. But, with the Interior and Defense out of the way nothing left but the Art 8, rate for the budget that the Big  3 Firms most likely approved of Sunday.. imo..

Mountain Goat – Dinar Guru   …The CBI has told us in multiple articles that the 3 zero notes would be used later (after the event) almost exclusively for inter-banking transactions for trading. Later these larger notes are NOT meant to be in the publics hands thus 10 ten years to get all of them (the remaining 2/3 out of circulation). So you as an owner of these larger notes, when you do to the bank, the banks will want these dinars since they will be VERY valuable. When we exchange our dinars, we are acting as we are bankers not ordinary Iraqi citizens. This is the key to understanding this exchange process and just because it is so different than other forms of re-denominations… [post 3 of 3] 

Mountain Goat – Dinar Guru   …How can banks then differentiate the rate to the different notes? They can’t and so a dinar is a dinar. Example: So let’s say you took a newer category note of 1 dinar to the bank and exchanged it after the reinstatement. The new rate is 1: 3 meaning 1 IQD is worth $3 USD. You would get $3 USD. Then if you took an older 25,000 dinar note to the same bank they would have to apply the same FOREX rate of 1: 3 to this note too. They will not be able to differentiate. Get it? Thus you would get $75,000 USD in exchange. So yes, the currency you hold would be much stronger.   [post 2 of 3]

Mountain Goat – Dinar Guru   [Will by deleting the zeros it makes the currency stronger , therefore making our investment more valuable?]  Yes, by deleting the ZEROS this will make the currency stronger thus also our investment. On the surface it looks like your 1,000 dinar note would only become worth only 1 dinar. But what most forget or don’t know is that the two currencies will “coincide” together for up to 10 years. That means the older 3 zero notes and the newer lower category notes will both be in circulation at the same time.  [post 1 of 3]

David M. Witty – Dinar Guru    Iraqi Speaker of Parliament says next meeting will hold vote to complete cabinet formation & vote on 2019 national budget.

RVAlready – Dinar Guru At the moment, I can see no reason to delay the RV, and lots of reasons to go ahead immediately. After all, everyone says they are ready, so they should do it right now.

Mountain Goat – Dinar Guru …the reinstatement of the Iraqi dinar should have taken place over the weekend and was held up again due to NSA security reasons.  I have talked to my CBI contact and I am told that they are getting tired of this postponement and really need this currency to move ahead with the reconstruction phase. They are already a year late in their five year plan 2018-2022. The good news is there is still 10 days remaining in January and this month is the best opportunity for the CBI to do it for accounting reasons. Their fiscal accounting year coincides with the calendar new year unlike the western world that begins on Oct 1st.

MilitiaMan – Dinar Guru   We just watched a few of the largest firms in the world have a meeting with Alak today. All in the same room. …Iraq is ready and they had to get on the same page for whats coming now, as it will be different than before. imo..  The meeting with those who dot the I’s and cross the T’s were at the central bank today and word is there was cargo leaving the banks at night.. Makes one wonder at this present time why? Don’t forget, the central bank issues cash… all imo.

Mountain Goat – Dinar Guru   [Is the CBI saying replacing the larger 3 zero notes with new currency?]   If they remove three zeros the IQD it will be replaced by a new lower category currency thus when the CBI reinstates the currency they will have to raise the rate. But they do not need to get all the 3 zeros notes changed over. In fact the plan does not call for all of them either. Once the reinstatement occurs they told us it will take up to 10 years to get all these 3 zero notes out of circulation. So the reinstatement is also pivotal in this process.

Frank26 – Dinar Guru  Article:  “The supervisory and auditing bodies meet in the Central Bank of Iraq” Quote:   “a meeting of the bank held today under the chairmanship of the Governor, and the presence of the President of the Office of Financial Supervision, the head of the board of Securities, and the captain of accountants and auditors, and Vice-President of the Iraqi Association of Certified Public Accountants, and representatives of international audit firms (KPMG, Ernst & Young, Price Waterhouse Coopers).”   INTER ………….. NA ……………….TION …………… AL !!!

MilitiaMan – Dinar Guru   Article:  “The supervisory and auditing bodies meet in the Central Bank of Iraq” Quote:   “a meeting of the bank held today under the chairmanship of the Governor, and the presence of the President of the Office of Financial Supervision, the head of the board of Securities, and the captain of accountants and auditors, and Vice-President of the Iraqi Association of Certified Public Accountants, and representatives of international audit firms (KPMG, Ernst & Young, Price waterhouse Coopers).” Alak is sitting at the head of the table and has everyone’s attention…The attention of three of the largest firms in their line of work in the World. They will need to coordinate with each other from here on out.  We should all be smiling about now with the timing of the meeting.  The numbers not only on the new notes will have to be accounted for and well managed  just as contracts will be when during and after the (RD/RI/RV)  process of completion of the Monetary Reform and the re construction of the country…IMO.

Mountain Goat – Dinar Guru   You all want to know what is holding up the Iraq dinar reinstatement? …We have heard the paperwork is all completed, the approvals given. Even the codes to release the funds necessary for the exchanges to take place are out. Yet…here we sit still waiting.  …So the excuse given once again?  We are hearing that it is once again…a matter of “National Security” as the NSA stopped the final trigger. As they have done so many times in the past.     I am certainly not one to call the RV every day or every weekend but I know without a shadow of a doubt that this time it was supposed to go.  Yes, it was planned for…Jan 19th 2019 exact timing unknown. The Central Bank of Iraq is reporting that “this is getting old” and that something must be done. They need their currency to move ahead with the reconstruction funding payments…

Kirk H. Sowell – Noted Author  So another parliament session with cabinet votes not on the schedule. The deadlock continues.

Breitling – Dinar Guru  I think Iraq’s oil production is about 4 million barrels per day…Iraq is the second largest oil producer in OPEC and the 5th largest oil reserve.  So look at the Saudi Arabia currency, what’s the value of that? 

Mountain Goat – Dinar Guru  In today’s news we are also seeing more pressure to stop or greatly limit the currency auctions. OH – but how can they do that without putting the dinar on a FLOAT and reinstating it back to it former glory on the global currency exchanges? Simply put they can’t…   This reinforces again that something is about to happen with the Iraqi currency. It almost has to as the pressure is building and the bubble is about to pop. January is only half over and so there is plenty of time yet to see some more actions in this direction. How far can they proceed without the reinstatement?

Breitling – Dinar Guru What are you guys [Iraq] up to? Ok so you don’t revalue at 54 cents, 90 cents…you can do 10 cents.  I know you guys can do that and you don’t even have to blink. It’s not going to hurt your economy one way or the other.  How do we know that?  Look at the other currencies in the middle east…that’s how you figure that out.   So after Saudi Arabia who’s the biggest producer of oil in OPEC?  It’s Iraq.  Iraq has the 5th largest reserve in the world…So you start looking at these other counties and what they produce and how much their currency is and it doesn’t make sense does it?  Remember I talked about undervalued stock?  Undervalued currency is that simple…I love it cause that’s how it works. 

Adam Montana – Dinar Guru  […does Brexit have any effect on our Dinar investment?]   In a roundabout way it does, because global events always have some impact… so, yes. But it doesn’t merit any concern for us at this time. 

Kaperoni – Dinar Guru   A few people have asked for my opinion on the recent float article as to what “forced” means?  My view when I read the article is this MP is saying we can continue to have citizens on state payroll and take loans to support the budget or we can learn from some of these other countries and float the dinar and invite foreign investment into the country. I don’t think its a question of being forced...just a decision to get away from a state run oil dependent country and create a private sector supported by foreign investment. So a float is what is coming. 

Breitling – Dinar Guru  …They [Iraq] don’t have to revalue in one big pop or shot.  They can revalue little by little.  I’m not talking about a tenth of a penny.  I’m talking about adding 10, 15, 20 cents a pop.  Why they haven’t done it yet I don’t know.  I simply do not have an answer for that.  Because if I was them that’s exactly what I would be doing.  I understand they have to protect themselves and not make it too expensive overnight to invest in Iraq…90% of their export is oil.  That’s their economy.  And the price of oil is going down so they are not making as much money.  $56 a barrel is their break even point.  I think it’s $54 to $56.  They don’t just have to revalue for their sake.  They have to send signals out to the international markets saying “we’re out to play.”  If they are going to keep their currency low people are not going to send product to Iraq to be able to trade.  It kind of binds them up.  They need to start doing something. 

MilitiaMan – Dinar Guru   “FROM IRAQI TV:   The Economic and Investment Committee….  Iraq may be forced to float the dinar to encourage investment in Iraq.”    Using words like Urgent Measures to reduce Auctions earlier, and now they may be FORCED to FLOAT the DINAR!!!  The language is very powerful, thus, it is very important.. Again, the CBI stated the other day now, that the 2% fee on $20.00 (transactions) will cease on Sunday, thus, the take away is they may show us smalls.. imo.. Why all the Urgency? Logic points to reforms being completed, thus, change is coming...imo.

Delta – Dinar Guru  FROM IRAQI TV:   The Economic and Investment Committee….  Iraq may be forced to float the dinar to encourage investment in Iraq.

Mountain Goat – Dinar Guru  Article:  “WHEN WILL THE IRAQI DINAR BE REVALUED?”  So again the CBI is telling us and I quote – “the revaluation of the Iraqi dinar is ready to be implemented by the country’s Central Bank; however, the Parliamentary Economic and Investment Commission HAD DECIDED TO POSTPONE THE REVALUATION UNTIL NOW TO 2019”.

What is this telling us?

1)Again the CBI does not work alone and needs the support of the rest of the government.

2)The project to delete the zeros was postponed until 2019. Again…this confirms that perhaps this year of 2019 is our year to get it done.

It is now January 2019 folks!

Kaperoni – Dinar Guru  I…want to point out every year someone says look at the budget for a change. …The budget has nothing to do with any reforms and can be made retroactive at anytime.

MilitiaMan – Dinar Guru   The answer from the contact specifically says…as I have and others have suggested…They are article 8 compliant imo … Like has been said for years, they don’t have to tell us.. But by actions they are.   …In other words. Imo, They show us they are article 8 just as they rightfully can without yet specifically saying so for 30 days … 

Delta – Dinar Guru  Single Currency Crosses…LOT OF MOVEMENT NEVER SEEN BEFORE…SPECIALLY…EUR/IQD AND GBP/IQD…

Adam Montana – Dinar Guru   As much as we all hate “I told you so’s”, here are a couple. Headlines from the past couple days include: 1. BREXIT.  When this was first brought up in 2016, I voiced my opinion that it wouldn’t be successful and not to worry about it. As of this morning, it looks like the whole thing was a huge waste of time and is going nowhere… time will tell, but I could have told you that as well.    2. Did you catch my update last week? One of my talking points was oil, the price per barrel, and Iraq’s sneaky but convenient exception to the ongoing limitations on production by OPEC members.  Just look at these headlines…   [post 1 of 2]

Mountain Goat – Dinar Guru   Should we get our bottle of champagne ready?  I have to tell everyone the CBI is still telling me they are targeting the month of January.  I would not open your bottle of champagne and celebrate as of yet but I certainly would think about getting a nice BIG bottle and get it chilled and ready. But remember this saga is not over until the fat lady sings. Too many signs are showing us that this could finally be our month to see it. It has been a VERY long journey but I thinks perhaps it is coming to a conclusion…finally….
[post 2 of 2]

Mountain Goat – Dinar Guru   Will the reinstatement happen in 2019?  We don’t know when the reinstatement will occur for sure and many say the project to delete the zeros is now all done. So go figure?  …This news is coming from some VERY credible sources of information…   …there are no more delays expected. The process is on the move. They are telling us once again 2019 is our timeframe. OK – hold on to your horses! I do not know the exact timeframe in 2019 but all we can confirm is two things – 1) they just told us this week in the news media that 2019 is our year and 2) we know they normally like to target January and we still have half of the month of January remaining.  So let’s see what happens in January and if it does not happen then we move to another target. [post 1 of 2]