Dinar Observer Daily

Kaperoni – Dinar Guru  Iraq doesn’t prosper by raising their exchange rate, Iraq prospers by creating the conditions for the world to invest in Iraq.  A country’s exchange rate ultimately is a reflection of that success, not the other way around.

Militia Man – Dinar Guru  I don’t think anybody’s going to be able to prove me wrong, you drop the three zeros, the exchange rate changes from 1 USD to 1.32 just like al-Sudani says.  Do the math it comes out to .76, apply the real effective exchange rate and that’s where the show starts big time… .76 is $0.76 – it’s slightly less than the dollar.  That’s value.  It’s not .0007 something.  It’s value.  That’s what they’re talking about – Bringing value to the currency.  That’s what Al-Alaq is there for.

Pimpy – Dinar Guru  Article: “Iraqi Dinar:  IBBC issues major new paper on De-Dollarization of Iraq”  There’s a new study/report that has been released…As you can imagine it talks about the currency state that Iraq is in, steps that need to be taken to improve the situation and of course there’s talk about the exchange rate…

Nader – Dinar Guru  Iraq wanted to de-dollarize.  They start de-dollarizing in January but it didn’t work for them too much.  The government didn’t expect that to happen even by telling them that the dinar are stronger…use the dinar instead of the dollar for the benefits of the country.  They tried everything.  Now, they said that plan didn’t work so they come out to the new white paper…They realized they cannot do nothing without changing the exchange rate.   [Post 1 of 2]

Nader – Dinar Guru They’re going to have to go down in the exchange rate for the de-dollarization…They’re going to have to change their exchange rate…Between now and 8th of July we should have an answer… what they going to do?  Are they going to change the exchange rate…keep it the same…go up…go down?  I think they’re going to have to go down on the exchange rate a lot for them to take off the dollar from the street.  [Post 2 of 2]

Clare – Dinar Guru  Article: “Professor Frank Gunter launches a new white paper on de dollarisation of Iraqi economy.”

Mountain Goat – Dinar Guru   I wanted to share an interesting conversation I had…with my CBI contact this past Wednesday…I was told that the committee to work on the Project to Delete the Zeros has sent the CBI prepared articles to the news media for the sake of educating the citizens on the upcoming process. However, they are dated and so they are for the near future and not for current news.  Yes, they are getting ready and moving ahead.

Yada – Dinar Guru  Article: “Parliament sets next Monday as the date for the session to approve the budget schedules”  …we are not waiting on their vote, their vote will happen after the release of the rate. IMO, the rate for the budget voted upon in June 2023 is what we are about to see…any moment. The budget they vote on on Monday is the rate change for the newest contract since Jan 24 this year…All the more expecting to see the rate any moment now.

Kaperoni – Dinar Guru  Community request: “What are the so many reasons for no revaluation please.”  The first reason which is the most important is there’s almost 100 trillion dinar in circulation. Iraq’s net worth including all minerals and oil in the ground is only $16 trillion dollars. An RV to only a nickel would bankrupt the country.

Sandy Ingram – Dinar Guru  Last week marked a sensational milestone for the central bank of Iraq.  In a stunning financial twist, foreign remittance sales skyrocketed by a whopping 90%, surpassing cash sales by over $252 million…The majority of these sales…were strategically utilized to bolster balances abroad through remittances and credits.  By regulating the flow of foreign currency the central bank instills robust confidence managing Iraq’s balance of payments. 

Pimpy – Dinar Guru Article: “Economist:  The budget is not affected but dollar exchange rates.  And explain the reason”  The person is saying the budget is never affected by the dollar exchange rate because the budget is based on Iraqi dinars.

Clare – Dinar Guru  Article: “Economist: The budget is not affected by the dollar exchange rates… and explains why”  Quote: “...because Iraq will receive the dollar from oil exports, and on the contrary, revenues increase with the increase in dollar prices globally…market obligations are dealt with in the Iraqi dinar, and there is no dealing in the dollar, and the budget is built primarily on the Iraqi dinar and not on the dollar, so the budget is never affected by the dollar exchange rates.”

Militia Man – Dinar Guru  Article quote: “If we assume the Central Bank issues a new currency this will not affect the exchange rate of the Iraqi dinar.”  This guy is not wrong…It won’t in my view.  The exchange rate will affect the new small denominations though…If they change the value of the exchange rate by dropping the three zeros, therefor the new denominations will be affected by it, which will be value.  It’s pretty simple.

Mountain Goat – Dinar Guru  …we read three articles about the CBI official rate equaling the Parallel or Black market rate in the coming days. WOW!…Saleh, the prime minister’s financial advisor, then goes on to say this will make one dinar equal to one dollar in Iraq. WOW! …I was told by my CBI contact months ago to watch for right before the CBI makes one more “official” rate change closer to 1000 from 1320. If you take 1000…and delete the three zeros 1000 what do you have? Of course, you have a situation of 1 dinar equals 1 dollar…But I believe that when they CBI does make this next official rate change it will move closer to 1166 and not 1000 which would make 1 dinar = 1.16 dollars just over a dollar to help the banks retrieve these dollars hoarded outside of the banks…   Let’s sit tight and watch this play out.

Samson – Dinar Guru  Article: “Central Bank: The issuance of new monetary denominations will not affect the dinar exchange rate”

Militia Man – Dinar Guru  If you raise the value of the currency it’s going to have a ripple effect…Instead of being a pebble…or a brick in the pond this might be a boulder.  There’s going to be some waves.  The World Bank, IMF, US Fed, US Treasury…Bank of International Settlements, everybody’s going to need to know what you’re going to do and when you’re going to do it and pretty close.  They’re not going to be broadcasting it like everybody thinks, ‘What’s the date and what’s the rate?‘  That’s not how it works.  But we study it close enough to where…we can see it can’t be far off…

Kaperoni – Dinar Guru The dinar when it floats will be whatever the current exchange rate is and could rise gradually accordingly.

Clare – Dinar Guru   Article:   “Experts expect the dollar exchange rate to fall and reach parity with the official price”  Quote:  “Financial experts expected the parallel dollar exchange rate to fall and reach parity with the official price.”

Mountain Goat – Dinar Guru   The train is moving faster down the tracks now than ever before...In fact, Iraq has come right and told us this is going to end with the Iraq dinar regaining it’s former strength.

Fnu Lnu – Dinar Guru  Much has been made of the number 90 Trillion. This is the alleged number of Dinar at large…I do not believe this number is valid and here’s why.  1) There are always casualties such as fire & natural disasters. 2) We know there has been an effort, for years, to coax three zero notes out from under mattresses, with some success. 3) We know stolen Dinar have been recovered in very large amounts recently. 4) Here’s the biggie: I saw a video some years back, where a jet was seized attempting to leave the country, and it was stacked from floor to ceiling with coffin sized cases full of Dinar.   [Post 1 of 2]

Fnu Lnu – Dinar Guru  It had to be trillions. Much to my surprise, the jet was eventually cleared to take off.  However, it was no surprise to hear the jet was registered to Nuri Al Maliki. The jet landed in Zurich Switzerland where it was then seized and the Dinar confiscated. Some may remember an article stating that Switzerland repatriated a large number of Dinar to Iraq but the article was scant on details. When one considers all these scenarios, it would seem that there is far less Dinar in circulation that 90 trillion. It may well be half that amount. IMHO. [Post 2 of 2]

Pimpy – Dinar Guru  I agree it’s going to happen.  I don’t have doubt about that.  I’m just keeping an eye on whether or not they want to delete the zeros.  If they go to a free floating market hopefully there won’t be…deleting the zeros and we’ll see the exchange rate go up pretty quick before they have time to respond…

Militia Man – Dinar Guru     If they’re going to have liquidity and they don’t have it now it’s going to require new small category denominations to be in circulation.  Just as al-Alaq’s project to delete the zeros would require new denominations.   Did they do that in 2018 and have them in storage?  I believe they did…

Militia Man – Dinar Guru  Article: “March 11, 2024 Iraq government is currently weighing the question of changing the currency so that the official cost of a US dollar will be 1.32 instead of 1,320 dinar.  Implementing such a decision is likely to  significanly increase Al-Sucani’s popularity.”  Drop the mic.  That’s huge.  It’s phenomenal…That’s still on the table.

Clare – Dinar Guru  Article “The Central Bank of Iraq “denies” issuing a currency in the category of (100) thousand  dinars”  Quote “The Central Bank of Iraq denies issuing a new currency in the denomination of (100) thousand dinars, indicating  that the image of the new currency circulated on social networking sites is a “fake” image bearing the image of the late Iraqi  architect Zaha Hadid”  

Mountain Goat – Dinar Guru  Samir Al-Nusairi, the Central Bank announced that it will launch the national lending strategy on 5/25/2024, which is a clear announcement of the beginning of the second phase of its banking reform strategy…CBI announces it has completed the first phase of it by…building solid international banking relationships with international banks and correspondent banks. Get ready…

Militia Man – Dinar Guru  In 2016 Gold was right around $1,500 bucks an once and today it’s running $2,300 to $2,400 bucks an ounce.  They increased that gold supply by about 40 tons…Their currency reserves are around $110 billion.  They have a massive amount of wealth.  They have the ability to support their imports for about 16 months they say, which is about 5x what they need.  That’s important.  They don’t want to reduce those.  They’d like to keep them on hand...Iraq has a good foundation for Alaq to do what he’s supposed to do and it’ll only get better if he does.

Clare – Dinar Guru  Article:  “In light of the Middle East conflict, the World Bank expects oil prices to exceed $100″  Quote:  “The bank said in a report published today that a severe price disruption could lead to oil prices exceeding $100 per barrel, which would increase inflation in 2024 by about one percentage point.“

Samson – Dinar Guru  The World Bank said on Friday that the disruption of oil supplies if the conflict escalates in the Middle East could lead to a rise in global inflation rates.

Militia Man – Dinar Guru  Once you apply a real effective exchange rate you become Article VIII compliant, Article IV compliant with the IMF you’ll have a valuation of what the country is worth…