Dinar Observer Daily

Stryker – Dinar Guru   The time has finally come for the CBI and GOI to deleting the zeros but will they do it?  (economic and political stability = 2019 Budget) 

Mountain Goat – Dinar Guru  Article:  “THE FUTURE OF THE IRAQI DINAR”   So here we go…This article is more explanation of the process to delete the zeros. This is part of the re-education process that had to take place prior to the EARLY 2019 reinstatement occurring. So here we have yet more evidence the CBI is finally doing this education campaign.

ChrisC – Dinar Guru “Iraqi Dinar Exchange Worldwide 4:00 AM Baghdad Time” US Dollar

1 USD = 1,191.0000 Iraqi Dinar
1 Iraqi Dinar = 0.0008 USD

I have been watching this and not saying anything for several days, but why is everyone so worked up over decimal points?   If we are going to the left, the 190 will occupy the three decimal places for the fils. Not sure what seeing three zeros the other way does for us. Actually makes me a touch nervous.

Kaperoni – Dinar Guru  Iraq is not in IMF Article VIII as of yet.  Believe me when i say this…when Iraq changes the exchange rate regime and moves to Article VIII you will hear it from me first.

David M. Witty – Dinar Guru   In Iraq, PM Abdel-Mahdi looking at names of 28 candidates for Defense Minister, among them former Speaker of Parliament Jabouri.

Kaperoni – Dinar Guru  Investors will do business with Iraq no matter what the exchange rate is as long as the CBI is an Article VIII. The key is that firms that invest in Iraq are able to get their profits out.

Kaperoni – Dinar Guru   [Isn’t article 8 the reinstatement of their currency on to international trading platforms?]   No.  It is a standard of banking practice.  The dinar is international now, just most if not all banks choose not to trade or do business with until that standard is met.

MilitiaMan – Dinar Guru  Article:  “260+ attend IBBC Iraq Reconstruction Conference”  Quote:  “IBBC welcomed 260+ delegates to Dubai to discuss ‘Iraq – Reconstruction & Rebuilding, how to deliver Vision’ with expert Industry, Government and International Organisations on 25th November” …This is all about past tense as it is over now, as it is what was talked about, what was accomplished and with HUGE names involved.. This just shows GO TIME is upon us. IMHO.

Mountain Goat – Dinar Guru   Is the Iraqi currency International?    …let me debunk this rumor once again about any VISA or MASTER CARD going international and issued from an Iraqi bank.  First, I will once again define what it means for a currency to be international:  1)  for the IMF must recognize the currency under Article 8 of the UN member charter;  2) the currency MUST be tradable throughout the world not just in one area of the globe;  3)the currency, because it is recognized and traded around the globe, it is listed on the currency exchanges, where it is freely traded. Does it meet all of these conditions? Of course not…So these Iraqi cards are NOT yet really international yet. At least not yet. But they do have this capability for the future. 

Kaperoni – Dinar Guru   ‏ […they have already reduced the money supply.]  ...Wrong!  This has not happened.  If it did the auctions would be out of balance.  As said last week from the CBI over 40 trillion is outside of the banks.  Only when the dinar begins to rise gradually can the money supply be reduced…  

MilitiaMan – Dinar Guru   Article:  “The future of the Iraqi currency!”  Quote: “It is possible that the value of the Iraqi currency against the US dollar, for example, that the employee who receives 1200 thousand dinars at the exchange rate 1200, the purchasing power of $ 1000 dollars and if the strengthening of the dinar equivalent to 500 dinars to the dollar will be purchasing power $ 2400 instead of $ 1000.”  What a GEM this is…All those relationships about the FILS make me smile! Stock Exchange = Fils, Receipt with Fils, CBI = Fils and now this! No denial!

Mountain Goat – Dinar Guru   So I would not use this “alleged” past corruption at the CBI for any reason to hold up the reinstatement now. This is moving forward. From all my findings the hold up, if any, would be procedure and executing the mechanisms needed to bring this about. If I were you, I would watch for late December or early January for a reinstatement to occur. Again we are fast approaching that window. Remember in ALL the past recorded, legitimate, possible times to complete the project to delete the zeros and then lead to a reinstatement, it was for the late Dec and early Jan time frames…The Iraqi fiscal financial year begins Jan 1st.

Dinar News Update  [CBI Updated again today] After a fourteen day delay, the CBI reported the market rate for the Iraqi Dinar from November 14th to the 27th [They updated again today – the 28th also]…something is different.  Starting on the 14th they began reporting the Dollar Exchange Rate / in IRAQ Markets.  Previously the market rate was reported in the Baghdad Markets.  You’ll also notice the Official Market Rate listed in the left column of this page now contains 3 decimal places…the previously reported rate did not contain decimal places.  Today’s 1194.197 reported market rate is the strongest the market rate has been in nearly 2 years.

Kaperoni – Dinar Guru   [Do you still think the start of the float of the dinar will happen this year?]  Im hoping… but I am waiting for some things to happen first… completion of new GOI, IMF consultation.

ADMINBill   This could be a very interesting week.

Mountain Goat – Dinar Guru   Do they then begin to use the newer even lower denominated small category notes and finally trigger this deletion the zeros project? This will mean a 1:1 within Iraq and a reinstatement of the dinar. But do they have the support of the IMF and the USA to reinstate the dinar and do it now?  Remember these small category notes are already printed in volume and stored as needed to support the economy of Iraq and for trade. So this piece is already in place and there will be no additional expense to the CBI. …So here we sit waiting and watching to see what the CBI will do. [post 2 of 2]

Mountain Goat – Dinar Guru   I do know for a FACT that they already recalled and burned over 2/3 of the three zero notes. How do I know this is FACT? BECAUSE THEY TOLD THE PUBLIC OF IRAQ IN THE NEWS MEDIA this is why. The move to electronic banking did allow for the conversion of paper to electronic digital. So they could just then burn the paper. …So reduce the notes in circulation means to take them out the hands of the general public and the banks.  …The remaining 1/3 will be used for trade and inter-banking transactions. They have told us this many times. Oh- but now they have a dilemma. Seems they told us they decided to trade exclusively with dinar with Iran due to the recent sanctions. So do they have enough dinar in circulation to do this?  …Seems to me they do not want to begin reprinting yet more larger 3 zero notes to fill this monetary gap with Iran. So what do they do?   [post 1 of 2…]

Kaperoni – Dinar Guru   Iraq will float the dinar allowing market forces to dictate.  As investment comes into Iraq, the exchange rate will rise.  Balassa-Samuelson effect!  I think most of us would be happy if the dinar ever equaled the dollar.  It may, but not overnight.  I want to remind people that the new Iraqi government with PM Mahdi is not official yet.  Until the new Prime Minister completes his cabinet and parliament votes (confirms) them in.  I do not expect any significant reforms to move forward until the government is official.  I also do not expect the IMF to hold their Article IV Consultation with Iraq until the gov is official…as these reviews usually require gov commitments.

MilitiaMan – Dinar Guru   …The CBI changing their site to the fractional system they are showing us now ( within 2 weeks) suggests they are or just about are ready to go with the conversion. …Today they talked about Iraq taking her place at that top of the region where she was in the Glory days, imo… Yep, they have massive oil reserves and now they say they may very well be the number 1 in the world. So, while we wait for the cat and camel show seating the legitimate Cabinet we can sleep knowing the process is underway and coming to a rate NEER you…

Delta – Dinar Guru   …REPORT FROM CBI …BUY SELL IQD IN IRAQI MARKET….PATTERN CHANGED…  08-Nov 1204- 1200…LAST WEEK;   27-Nov 1194.446- 1193.953 …THIS WEEK CBI IS SHOWING 3#S … IMO…GETTING READY TO GO INTERNATIONAL …

RVAlready – Dinar Guru   …Alak says he is ready to go, and the math has been done a million times over…they could do the RV now, and deal with the rest later…they have had years to get ready… I know it is a new parliament, but they should have arrived ready to do the job at hand…there was an article saying that mahdi was rejecting parliament’s attempt to delay…he was going there today.

MilitiaMan – Dinar Guru   I am of the view…that they are done with the cabinet, Barzani needed to be a part of the Interior and Defense pick… Clearly they had an agenda to hammer things out.  Therefore, my view is that they did what they needed during Barzanis’ visit to Baghdad (that btw went very well) prior to him going to Saudi Arabia and United Arab Emirates…In my view that the session for today or tomorrow was not an ordinary session. It was more like and extraordinary one, as Mahdi had a 24 hour window that was up Saturday, that got postponed and possibly due to the hammering out of the HCL.  We know the oil has been increased and there are clearly agreements that happened to get that increase of recent…we literally watch to see if our view is correct or not.

David M. Witty – Dinar Guru    Iraqi Parliament says there will be no vote today on unfilled cabinet positions due to political differences. Vote delayed until next week. Security agencies resist opening Green Zone due to possibility of terrorist attack.

Mountain Goat – Dinar Guru   …I have said over and over again there are multiple steps to this process. The first step deletes the zeros and the second in the reinstatement which should significantly increase the value, the value we all want. At the current 1120 program rate they are worth about $20.75. At a futuristic reinstatement market rate in the USA @ $3.71, 25,000 x $3.71 = $92,750 USD. But this is the second step. Let’s not get ahead of ourselves. You may never even see the first step. Get it. So who the hell cares what happens inside Iraq? What you should be most concerned about is when do you get to go to the bank and if the bank will exchange the dinar for you.  …these notes will not expire (as in a lop) and will carry the new reinstatement rate of whatever it comes out to be on FOREX.

Chattels – Dinar Guru   Article:  “To postpone the session of parliament for Tuesday of next week“

MilitiaMan – Dinar Guru  Article: “Halabousi discussed with the delegation of Baghdad Chamber of Commerce activation of the investment law and the establishment of an economic village” …Well, we know every 3 letter agency of the world body were in Iraq last month, we have regional entities with the likes of the Secretary General of the Unity Council and components of th Arab league in Cairo about mining interests over the last few days. The above is about accelerating procedures…to help facilitate investors needs…

Mountain Goat – Dinar Guru   The CBI has said many times they “fully” intend to keep the citizens informed of the status of the project to delete the zeros. They are doing just that. They seem to give period updates on the project. Just recently we received their latest update which said they are ready to do it and there is nothing more for the CBI to do. They are waiting on the GOI…

David M. Witty – Dinar Guru   Sources say Iraqi Parliament meeting to select names for unfilled minister positions delayed because of lack of agreement on nominees.

MilitiaMan – Dinar Guru   Article:  “The Association of Iraqi Private Banks holds the course of Islamic Specialist in Governance and Compliance”    There is a Customs and Tariffs Deadline by 11/30/2018 between Baghdad and Erbil to be imposed. Barzani has melted the Ice on the tension now. Oil is flowing through Ceyan at a double clip.. So seeing this compliance and risk certification for to satisfy Islamic Investors is finality for being ready to roll when the shift occurs in the internationally accepted IQD and investment related issues. imo.

MilitiaMan – Dinar Guru   “Parliament raises its meeting to next Monday and allocated for the completion of the ministerial cab”  I think they may have seated the Cabinet and will finish up other Items Monday.…We shall see…imo.