Dinar Observer Daily

Pimpy – Dinar Guru  The official exchange rate, that’s the one we want to change but surely wouldn’t want it to change with new re-denominated currency with the deletion of the zeros.  I want a nice fat $3.00 to 1 Iraqi dinar exchange rate with the currency we have now. (Post 2 of 2)

Militia Man – Dinar Guru  Article:  “A specialist points out the reasons for the noticeable decline of the dollar in Iraq: It will reach the official price”   We have been told inflation has been contained to about 3.7% and the Iraqi dinar has ample cover with over 15 months worth of imports over the standard or more typical 3 months. They have increased gold by about 43 tonnes.  They have a new ASYCUDA system for oil and non-oil revenue streams.  A real effective exchange rate will be an additional tool to curb the illegal parallel market and quickly imo.

Mountain Goat – Dinar Guru   …another article came out from the CBI telling us about yet another step in the RV/Reinstatement process is about to be implemented…The reinstatement is coming and I firmly believe from what we now know we are about to witness the major part of the Banking Reforms that everything else was geared up to support over the past 10 years.  Iraq is now slowly getting out of the sanctioned mindset / banking practices and return to common international banking practices of how they will be doing business with the rest of the world. Yet more evidence of it this period of news in March.

Pimpy – Dinar Guru  Think about it.  The current Iraqi dinar of 25,000 dinar – they delete the zeros off, now becomes  25 dinar and then all of a sudden they change the exchange rate from where it is to $3.22 per dinar.  This is good for the Iraqi  people, their purchasing power has changed.  They can get a lot more things bought with their money.  But that doesn’t help us  because they lopped the zeros off…so instead of getting a $3.22 rate against a 25000, we’re only going to get that $3.22 rate against a 25 dinar.  Instead of getting millions you get thousands…At least be aware that that’s possible.

Kaperoni – Dinar Guru  If Iraq is unable to achieve diversity they will have no alternative but to simply just delete the zeros (LOP) which is a neutral event reducing the currency from around 80 trillion to 80 billion dinar. Any exchange rate gain would be minimal as a result.

Sandy Ingram – Dinar Guru  There is absolutely no law against carrying large sums of cash…You can travel with as much money as you want.  However, there is a catch.  If you are entering or leaving the Untied States with more than ten thousand dollars in cash or equivalent, you are required to report it to customs and border protection.  This rule applies whether the cash is in U.S. dollars or in a foreign currency…You need to complete a “FinCen 105 form”…What happens if you don’t report more than 10 thousand dollars in cash?  Failure to report can lead to seizure of the money…You may also face criminal charges...Remember these rules…it’s always better to be safe than sorry.

Dinar Investor – Jeff   This weekend coming up would be the historical anniversary date of when Kuwait reinstated their currency – March 24, 1991

Militia Man – Dinar Guru  Oil is anywhere from $88 to $85 right now.  Add in the tax revenues and customs duties and fees at the borders, the tourism you got to see the exchange rate of the Iraqi dinar is not going to be at $0.76.  They’re going to have to add that real effective exchange rate to it and that’s probably…exactly why they haven’t exposed it just yet.  It’s a sensitive issue.  They need to keep it close to the chest… They can’t go out and tell everyone on the street, ‘Hey you know next week your exchange rate is going to be X.’  It doesn’t work that way…Eventually they will expose it…

Pimpy – Dinar Guru  They are going to amend the budget with or without a rate change.…Does it make sense for you to release the budget before they increase the exchange rate because then you have to turn around and redo the budget and make all the changes to the budget using the new exchange rate.  So no, it doesn’t make sense to release the budget before you change the exchange rate.  You would change the exchange rate then go through and amend all of your budget because the money you’ve allocated obviously has changed…The suspension of the funds has to do with corruption.  The reforms can be activated without changing the rate.  They’re going to reallocate revenue from oil to help fund all these reforms…

Dinar Investor – Jeff  Iraq technically does not need to amend the budget if they’re not changing their rate.  The budget already covers their operating expenses.  But they would need surplus funds to cover the reforms.  The reforms are contingent upon the rate changing.  They can’t bring these reform package forward if the rate does not change.  The only reason they’re amending the budget is because the rate is changing…The step of amending the budget can happen either before or after the rate changes … They will probably announce Thursday or Friday as to when they plan to amend the budget, which they’ll probably do around this weekend..

Militia Man – Dinar Guru  If Al-Sudani says, the dinar hold on to it, it’s going too be stronger than the dollar…$0.76 is not stronger than the dollar.  Add the real effective exchange rate and you can easily get over a dollar…

Yada – Dinar Guru   Be of good cheer folks, this is unfolding before our eyes…what we are are expecting is taking place…The articles last week regarding the 1.32 in Iraq was telling the people what to expect. The salaries, contracts, infrastructure are at a point the REER [Real Effective Exchange Rate] will activate it all…Today-tonight is very good for us.

BGG ~ More COMPLETE NONSENSE. Firstly, 1.32 was clearly referred to as the Dinar side of the Dinar/Dollar exchange equation… making the inverse (the USD side) more like .76 USD. Secondly, all of this hype started with Maliki’s crew theorizing what Al-Sudani might want to do… as a way to make him more popular with his supporters. That’s it.

Pimpy – Dinar Guru   Deleting of the zeros means a re-denomination.  Article quote:   “The Iraqi government is currently weighing the question of changing the currency…”  CHANGING THE CURRENCY.  It didn’t say exchange rate. What is says is currency… Definition “Re-denomination is a government policy in simplifying currency values without changing the exchange rate.”  …If we can get them to change the exchange rate without removing the zeros then we’re sitting pretty…

Clare – Dinar Guru  Article: “Iron and Steel Company: Iraq is on the verge of a major industrial revolution”

Dinar Investor – Jeff   One of the major things Iraq has to do before they can revalue the currency is they have to pause all of their money.  They have to suspend it.  Freeze it.  As of Friday both the central bank and the government of Iraq paused and froze all their monies.  What does that mean to us?  …By them suspending all of their monies between the central bank and the government that makes this [past] weekend…the first eligible weekend for Iraq to be able to revalue the currency…

Militia Man – Dinar Guru  Al-Sudani…talked about having the dinar be 1.32 dinars to the dollar…turns out to be around $0.76.  That’s a big bit of purchasing power for the citizens.  Is it what they’re going to end up with in the future based off all the natural resources that they…all the non-oil maximized income…tourism, all the extra stuff you never had when Saddam Hussein was in office?  Saddam Hussein’s $3.22 to 1 dinar was based off about $35 a barrel of oil.  Oil is pushing $85 today…They have surplus money coming from all these different places...

Clare – Dinar Guru  Article:   “Al-Sudani intends to visit Washington to lift the ban on banks prohibited from dealing in dollars”  Quote: “The head of the Iraqi Securities Commission, Faisal Al-Haimas, announced that three Iraqi banks were sanctioned by the US Treasury, and 25 banks were banned from dealing in dollars.“

Pimpy – Dinar Guru  Everyone is excited that Iraq has completed all the requirements to join the World Trade Organization but the bigger question is what’s next for Iraq?  …There’s this impression going on around the Iraqi dinar community that this is going to happen next week or next month.  Is this true or could the process take longer?  …What’s remaining for Iraq?  Approval by the general council…which is composed of all WTO members. …As of now they don’t appear to be on the calendar to be voted in…We got between now and June to see if indeed Iraq is added to the calendar…unless for some reason the WTO holds a special session…

Militia Man – Dinar Guru  Article: “Parliamentary Finance: The federal budget is in the corridors of the Council of Ministers, and there is no specific date for sending it”  Quote:  “On June 12, 2023, the Iraqi Parliament approved the tripartite budget law for the years 2023, 2024, and 2025.  Last year’s total budget amounted to 197 billion dinars, which is the largest in the country’s history.”  Take note that they used 197 Billion Dinars. That is a little over $150 million USD at the current exchange rate of 1,310 IQD… Seriously? I do not think so, unless they have done something we have yet to see.

Mountain Goat – Dinar Guru   So according to Shafaq News/ The Parliamentary Finance Committee discussed, on Thursday, with the Central Bank of Iraq, the monetary policy and banking system in the country and ways to increase the value of the Iraqi dinar. I quote from the article – “to ​​discuss monetary policy, the banking system in the country, and ways to increase the value of the Iraqi dinar.” Folks I don’t know about you but this article was WOW!

Pimpy – Dinar Guru  I warned you guys about this…that if you get together in a group you can negotiate a different rate.  No, no you can’t.  That’s false.

Samson – Dinar Guru  Article:  “Al-Sudani faces American pressure to resolve problems with the Kurds before visiting Washington”  Quote: “Iraqi  Prime Minister Muhammad Shia al-Sudani is expected to make his first official visit to the White House in April since taking power“

Pimpy – Dinar Guru   Everybody thought Iraq was at the end of becoming a member with the World Trade Organization…Come to find out they’re just barely at the beginning stages.  What does this mean for Iraq?  How long is this going to take?  Wikipedia quote:  “An offer of accession is given once consensus is reached among members.  The process takes about five years on average but can take some countries almost a decade…The shortest accession negotiation was…2 years and 10 months.  The longest were that of Russia lasting 19 years and 2 months.“

Sandy Ingram – Dinar Guru   Iraq has completed the necessary prerequisites to join the World Trade Organization WTO.  This pivotal development reported by Gulf News marks new chapter in Iraq’s economic journey…Joining the WTO is not a mere formality, it necessitates a commitment to aligning with WTO rules by enhancing private sector performance and overhauling trade policies….  Membership in the WTO is a significant milestone for any country.

Pimpy – Dinar Guru  If you go to 1.32, it actually comes out to $0.76. So if I take my 5 million dinars times $0.76 oh yeah!  $3.8 million, we’ll take it!  But…if this is moving the decimal place over 3 positions coming out to 1.320 for every US dollar…they need to change their currency…That’s the deletion of the zeros.  Your 25,000 dinar becomes 25 dinar.  So if I take my 5 million and remove the three zeros and multiply $0.76 – 5,000 dinars x $.76 = $3,800.  Yeah, that’s what it comes down to…When Al-Sudani was talking about he would love to have an exchange rate of 1.32…he was talking about the deletion of the zeros.  I said that’s what we need to avoid…You do not want the deletion of the zeros but it looks now like it’s inevitable.

Dinar Investor – Jeff   They have suspended currency auctions from this point forward, through the remainder of March…giving them eligibility to revalue this weekend – having this weekend being the earliest point throughout this entire year to be able to revalue…Iraq was not even eligible to revalue before this weekend…

Mountain Goat – Dinar Guru  I have to say that the CBI cannot turn back from all the progress already made. Also remember that the citizens of Iraq are reading all these articles too about increasing the value of the dinar and so it is way beyond the point of returning to the same old, same old…Remember two things if nothing else:  1. It’s not IF but WHEN this event is going to happen and;  2. It has to happen and soon.

Pimpy – Dinar Guru  People always think I’m being negative about the Iraqi dinar.  I’m not.  I’m trying to make sure people are grounded…I tell you guys this is what we need to look for, this is what we need to deal with and we don’t want the deletion of the zeros.  We do want the Iraqi dinar to continue to increase in value without deleting the zeros.  That’s how you’re going to make your money.

Sandy Ingram – Dinar Guru  Do not purchase any currency with Saddam’s face on it unless you purchase it as a collector. Purchase currency that is now in circulation in Iraq.

Clare – Dinar Guru  Article: “The Central Bank announces an understanding with the US Treasury to reconsider sanctions and indicates ‘illegal trade‘ “