Dinar Observer Daily

Samson – Dinar Guru  “Government advisor: Global indicators confirm that oil prices will continue to rise until the end of 2025“

Pimpy – Dinar Guru  Trust me, don’t get me wrong, I know it’s going to happen.  I think the bigger question is,  when?

Militia Man – Dinar Guru  Everybody should be pumped and ready to go…  Article quote:  “Sovereign guarantees to the private sector will contribute to the industrial renaissance”  This article right here will blow your socks off…

Kaperoni – Dinar Guru  [Reference to Guru Fnu Lnu article/post 6-23-2024]  Community comment:  “If it was a mistake, the mistake/typo was it should have read 6.5 trillion Iraqi dinars ($4.9 billion); making the rate 1320:1 IQD:USD. Various posts are citing the Iraqi budget as the source for the “6.5 billion Iraqi dinars” info.”  Of course it’s a mistake.  The CBI rate is official

Mountain Goat – Dinar Guru  Article:  “Kurdistan Federation: Legislating the oil and gas law will resolve the disputes between Baghdad and Erbil”   …There it is again in articles.   Do we need the Oil and Gas law referendum passed prior to the Reinstatement?  We were told we do. Let’s see what happens.

Clare – Dinar Guru  Question:  “The holiday is officially over was there any news about the Iraqi 2024 budget published in their gazette today?” NO…BUT REMEMBER THEY OFFICIALLY GO BACK TO WORK TOMORROW [Sunday] PER SUDANI ACCORDING TO WHAT WAS IN AN ARTICLE. SO WE DON’T KNOW IF THE MOJ EVEN WORKED TODAY [Saturday].

Kaperoni – Dinar Guru  Until Iraqi parliament passes the over 100 stalled laws that pertain to the success and growth of their economy, nothing will happen and the dinar will remain weak. Years have passed and still no progress on passing these laws.

Nader – Dinar Guru  Things have been moving a little bit from here to the 8th of July.  I hope we have an answer cuz that’s what they shooting for.  I don’t know if it’s going to be good or bad…It’s more good than bad but I don’t want to say anything about that cuz if anything happen you’re going to say, ‘Hey, but you said this.  You said that.’

Militia Man – Dinar Guru  Article:  “IBBC Conference: Much to Celebrate in Iraq as Energy takes Centre Stage”   This conference seems to be shedding a positive light on Iraq. There is good reason to in doing so. Iraq is about to break out in a very big way.. No stopping her at this stage now.. Way too many legal obligations on the table. There will be far more to come [See the IBBC Dinar debate video below]

Militia Man – Dinar Guru   Question:  will the rate be fixed or a float?  Militia Man:  Saleh who is the prime ministers financial advisor has released several articles on this. I think a managed float is exactly what they are talking about. It’s a form of a fixed…and a form of a float. It’s a component of both…If there was to be growth…imo it would be as conservative as they can. They will need to keep the rate stable on the dinar. Contractors would not appreciate rate or price changes every day…remember the reinstatement rate 20 years ago of $3.22.  Even the IMF has documents stating this was a relevant number. If it came out at that…they would keep the rate in a relevant range. Could it grow from there? It could. And they could adjust that accordingly but would probably keep it pretty tight.

Pimpy – Dinar Guru  When you hear somebody tell you that, ‘Hey in one country you cannot move forward and rebuild with huge projects with an exchange rate of 1,320 of your currencies for $1’ just say, ‘Oh yeah?  Look at Vietnam who has 26,000 of their currencies for every $1 and they continue to move forward.’

Militia Man – Dinar Guru    Iraq is still moving forward with their monetary reform and the project to delete the zeros. Alaq has stated this and Sudani refers to it. In the 2024 budget they mention numbers that mirrors what Al Sudani says. They are doing a $4.9 billion dollar pipeline to go through Jordan. If you do the math –the rate comes out real close to what Al Sudani said…which is about $1.32. This effectively deletes the zeros IMO… It is not a lop…

Clare – Dinar Guru  Article: “For the first time in history…a direct air transport line was launched between Erbil and London“

Mailman17 – Dinar Guru  Some gurus state that Iraq has to have more than oil to export to be on par with Kuwait. Every export Kuwait has is from oil..oil, gas, alcohol etc..all made from oil. Iraq has all that and then some. Oil, gas, sulphur, dates, gold and a few more. Do not compare Kuwaiti exports with Iraq..Iraq wins hands down and has more of it..food for thought.

Militia Man – Dinar Guru  Article:  “The Iraqi government is currently weighing the question of changing the currency so the official cost of the US dollar will be 1.32 Iraqi dinars instead of 1320.  Implementing such a decision is likely significantly increase Al-Sudani’s popularity.”  That was March 11, 2024.

Mountain Goat – Dinar Guru   Do they have to RV to make the budget work?  If you take what the prime minister told us about the dropping of the zeros…in an April 2023 article, we can see that taking the 1320 rate and dropping the 3 zeros makes it $1.32. If we take the 6.5 billions dinars allocated for the new pipeline construction it is actually about $4.9 billion dollars.  If we divide 6.5 / 4.9 we get 1.32…is this a coincidence? Can you see now why I am so excited...WOW! WOW1 WOW! …Many believe it is not coincidental and so I agree…Do they need the change in rate to build the pipeline? What about the other projects too like the 7 new refineries?  …if it does they will have to get their act in gear real soon, as they also told us they plan to begin this new pipeline now NOT in 2025.

Kaperoni – Dinar Guru  Question: “What happens now that the auctions are soon to be over? What does this mean for the  Dinar holders out there Kap?”  It means monetary policy is changing after 20 years to reflect the economic changes in Iraq. We’ll  have to wait and see what happens.

Sandy Ingram – Dinar Guru    We are looking for the Development Road Project to eliminate the IMF’s concerns over revenue outside of the oil industry and increase Iraq’s GDP to the point of increasing the currency’s value against the dollar as we have seen happen with the Mexican Peso against the USD…Iraq is working towards the goals of the IMF…

Militia Man – Dinar Guru   Article:  “Iraq is preparing to establish a project that will change the oil map.. Will it affect energy producers?”  Quote: “Included the project of this new pipeline with an estimated amount of 6.5 billion dinars or $4.9 billion.”  Think about what they just said, 6.5 billion Iraqi dinar equates to $4.9 billion...It is like saying the dinar is worth 1.32 to $0.76…That to me will be considered a REER.

Clare – Dinar Guru  Article: “Iraq is preparing to establish a project that will change the oil map.. Will it affect energy producers?” Quote: “Iraq’s budget for the current year 2024 allocated an amount of up to 4.9 billion dollars to establish a pipeline extending from Basra in the far south of Iraq on the waters of the Gulf, to the city of Haditha, located in the far west of Iraq within the Anbar Governorate”

Mountain Goat- Dinar Guru  ..the “icing on the cake” for today’s news…It’s about the huge ATM installation and testing going on in Iraq. Why is this so important? We were told by the CBI not too long ago the significance of that the ATMs role will play in the Project to Delete the Zeros…its all interconnected…To get petty cash they will need the ATM machines. At this time the petty cash will be set to the newer lower denominations post delete the zeros.

Pimpy- Dinar Guru  There’s been many people saying come on Pimpy tell me what is your gut feeling about the Iraqi dinar?  I said look, I tell you guys the truth…I’m not going to lie about it…That drives people crazy, I’m not going to blow smoke up your guys’ ass.  I think it’s a great investment.  My fingers are crossed that they will increase the exchange rate without removing the zeros…Is that realistic?  I don’t think so but we’re going to find out…

Clare -Dinar Guru  Article:  “The European Union mission expresses its readiness to cooperate with the Iraqi banking sector”

Sandy Ingram – Dinar Guru Countries could require that their oil be paid for in their currency.  This would greatly affect the Iraqi dinar in a good way for investors.

Samson- Dinar Guru  Article: ”China acknowledges: Iraq is our largest trading partner and must actively participate in the “Belt and Road” and “Development Road” plans.”

Mountain Goat – Dinar Guru   Article:  “DETAILS OF THE MEMORANDUM OF UNDERSTANDING SIGNED BETWEEN IRAQ AND HONEYWELL OF AMERICA”  Quote: “The memorandum that was signed aims to develop projects for developing refineries…noting that “raising the refinery capacity to 40 percent will add value to the crude oil produced and lead to raise financial returns and thus support the national economy.”  Folks, they just told us they will be expanding their oil capacity…Iraq will also be selling these refined oil products to the rest of the middle east and probably Europe and the US.  How much more revenue will Iraq generate before they finally give us the new rate? …Yes, there is a plan in place…all the signs are pointing now to much, much sooner than later. I certainly hope its June…

Pimpy – Dinar Guru   Sudani is really doing a remarkable job. …This project [oil pipeline] he’s getting ready to fund, if it’s successful and he pulls this off, this is really going to change the landscape for Iraq, especially against other oil powerhouses in the region…This is going to be a pretty big move.

Militia Man – Dinar Guru   All we’re looking for now, to some degree, is when are they going show these amendments to be law.  We heard different things about the president having to sign, not sign, we have 15 days time frames and people are debating on when that time frame starts – was it June 3rd or was it the day he received it?  Do we know the exact day he received it?  I don’t.   But we know our time is short…Once the amendments are passed into law, we’d like to think that prior to that they’re going to expose the new real effective exchange rate and probably mention they’ve done the project to delete the zeros which get you the nominal effective exchange rate. 

Pimpy – Dinar Guru  An RV and a revaluation is the same thing.  People often confuse a reinstatement and a revaluation…they’re two different things…Not only is a revaluation possible but Iraq has done it a few times already …Iraq revalued their currency or I should say in this case devalued the currency, it went from 1,190 dinars, dropped down to 1450 then revalued up to 1,320 dinars.  So when people say, ‘Man the Iraqi dinar is never going to revalue.’ I always go, ‘What do you mean?  It has revalued a few times already.  As a matter of fact, several times over the past two decades.’

Kaperoni – Dinar Guru Question:  “The redenomination talk keeps popping up; issuing new notes without the three zeros.  Which as you have already commented; ‘is a neutral event’ …If Iraq did actually do this, when would make more sense, before or after forex float (or doesn’t matter).”  I think they talk about it periodically but I don’t think there’s any chance that they will ever
redenominate.  It doesn’t reflect the countries economic success that would come from the actual growth of the currency over time based on success and GDP.