Dinar Observer Daily

Samson – Dinar Guru  Article: “Central Bank Governor Announces Understanding with US Treasury to Review Sanctions on Banks“

Pimpy – Dinar Guru I was hoping you guys caught this part of this paragraph… Article quote: “The Iraqi government is currently weighing the question of changing the currency.”  That should have told you everything you should have known right then and there…They‘re talking about deletion of the zeros. If they’re deleting the zeros off of this (1.32) then they’re also deleting the zeros off the currency…That’s exactly doing critical thinking which is what you’re going to need in order to get through this process.

Militia Man – Dinar Guru  Iraq is going to go through that industrial revolution because they’re going to rebuild the country.  The evidence is quite clear. The fascinating part about it is we had Al-Sudani/his government say they were going to do the project to delete the zeros…They were going to have the Iraqi dinar be worth 1.32 dinars to the dollar.  That equates to about $0.76.  Those folks that talk about a LOP, how do they explain that?  They can’t because that’s not what it is.

Pimpy – Dinar Guru   It [the article] doesn’t say the exchange rate is $1.32, more likely what it is Al-Sudani will change the exchange rate where you can buy 132 dinar for $1.  That’s a 90% increase.  I don’t know about you but I’d be pretty happy with that.  I’d be content with that.  I know a lot of you are expecting million, that doesn’t mean it can’t happen but if we’re allowed to keep this currency that we have right now with all the zero and they change the exchange rate I’m going to count my blessing and sell them because I’m not going to take the risk of hoping for a higher exchange rate and then turn around and delete the zeros.  $37,000 is not too bad for less than a $2,000 investment.  

Mountain Goat – Dinar Guru   …the Chairman of the Finance Committee stressed, and I quote:   “the importance of following up on the economic file and monetary policy, based on the supervisory aspect, and finding appropriate solutions to the obstacles facing the work of the Central Bank.”   What they are basically telling the CBI is to follow up and move more aggressively on this issue of increasing the value of the dinar...I believe there is enormous pressure to get the dinar revalued and conduct the 3 zero note changeout (The Project to Delete the Zeros).

BGG – Dinar Guru   Article quote: “The Iraq government is currently weighing the question of changing the currency so that the official cost of a US dollar will be 1.32 Iraqi dinars instead of 1320.  Implementing such a decision is likely to significantly increase Al-Sudani’s popularity.” …The article was published yesterday & I am suspicious of it’s veracity and timing. It always seems to get tossed around during election season.  Furthermore, how they decide to get from 1320:1 to 1.32:1 is another story entirely…Everyone will get all excited, when in reality… even if this is a legit move – it could still go 20 different ways.

Mountain Goat – Dinar Guru   Don’t be discouraged, the currency reform and banking process has come a very long way in a short period of time since January 2023 compared to waiting since 2011, when the plan originated with the IMF on how to turn the currency back on. So we went 11 years with not much progress then suddenly a huge jump which tells us something is up. This alone is all telling...If Iraq is to progress, as they say is their goal, they will need a globally recognized and traded currency once again and get it VERY SOON! 

Pimpy – Dinar Guru   I hold millions of dinar and people act like I don’t want the $3.22 exchange rate with the current currency, ‘No, Pimpy doesn’t like it.  He doesn’t believe in it.’  What the hell are you talking about?  I own millions of dinars.  Nothing would make me more happier than them to jump up to a $3.22 rate and keep the same bank notes that we got now. 

Clare – Dinar Guru  Article: “Al-Sistani: The beginning of the month of Ramadan is today, Tuesday”   

Sandy Ingram – Dinar Guru  OPEC+ members agreed to extend voluntary production cuts by 2.2 million barrels per day in the second quarter of the year…Iraq is losing anywhere from $2 to $3 billion a month in OPEC’s volunteer program to cut oil production.

Militia Man – Dinar Guru  Article:  “Economics website: A new application enhances investment movement in Iraq”  Quote:  “...The new index, called (RSISX Total Return), compares currency exchange rate changes and the returns achieved.”  It is not surprising they have a new RSISX Total Returns index for currency exchange rate changes. With Al-Sudani’s government mention of 1.32 dinars to the dollar yesterday and then today we see that there is talk of smaller denominations. Small enough to make change for 250 notes…Put all that with this new index being launched suggests for me, is that they are ready for change to come and not just in the exchange rate but…as in fils…This is another good sign Iraq is opening up to the world in a big way.

Pimpy – Dinar Guru  Can the Iraqi dinar get as valuable as a Kuwait dinar?  Of course it could.  There’s a lot of hurdles there.  Are they [Iraq] going to be reinstated?  No.  Two different stories.  The invasion and occupation [of Kuwait] was about 7 months…The Kuwait government was still able to do business as usual outside of Kuwait, use the money they had in their reserve fund.  Iraq did not have that, not to mention the fact that Saddam Hussein… printed the hell out of the Iraqi dinar causing the value of the Iraqi dinar to drop…You can’t compare Iraq to Kuwait because there’s no comparisons…

Mountain Goat – Dinar Guru This Saturday I had my normal call to my CBI contact in Iraq and was told they too are waiting for the signal to go ahead with the Project to Delete the Zeros. This is the next step. Everything from the Iraqi side has been cleared but the US Treasury has not yet given their assurance of the reinstatement once the process moves to the next step. The CBI now wants this in writing and a formal document stating the approvals. They are waiting for this to come.  …we know that what has been accomplished in the de-dollarization process is hard to undo at that point…So, there is no turning back and they must move ahead.

Paulette – Dinar Guru  Sistani set…3/12/24 as the first day of Ramadan…Note, IMO, Kuwait Reinstated their currency during Ramadan in 1991…therefore, it appears that it very well can be possible to see Iraq change their currency structure during Ramadan.

Militia Man – Dinar Guru  This is fascinating because this is coming from the Iraqi government today in the same context of Al-Sudani.  Article quote:   “The Iraq government is currently weighing the question of changing the currency so that the official cost of a US dollar will be 1.32 Iraqi dinars instead of 1320.  Implementing such a decision is likely to significantly increase Al-Sudani’s popularity.”  You think!?  Bring the purchasing power of $0.76 – that’s what it equates to…deleting the zeros just like we’ve been talking about.

BGG ~ There have now been numerous OP ED pieces done on this bit of news. The article was published yesterday & I am suspicious of it’s veracity and timing. It always seems to get tossed around during election season.

Furthermore, how they decide to get from 1320:1 to 1.32:1 is another story entirely. So, it’s all in the – “tale of the tape”. Everyone will get all excited, when in reality… even if this is a legit move – it could still go 20 different ways.

Pimpy – Dinar Guru  Does Iraq have the ability to be similar to what Kuwait has?  Of course it does, but they got a long way to go…When I first started talking about the Iraqi dinar, I thought Iraq is going to be just like Kuwait.  Until you actually start really digging into it and researching you find out they’re nothing alike…

Samson – Dinar Guru  Article: “The Iraqi government is currently weighing the question of changing the currency so that the official cost of a US dollar will be 1.32 Iraqi dinars instead of 1,320 dinars. Implementing such a decision is likely to significantly increase Al Sudani’s popularity”

Moutain Goat – Dinar Guru   Article:  “THE NEW IRAQI OIL LAW UNDERMINES THE DREAM OF KURDISH INDEPENDENCE”   Quote:  “On February 21, the Federal Supreme Court ruled that the Iraqi Kurdistan Regional Government must hand over “all oil and non-oil revenues” to Baghdad.”   This is a solid start to getting the Oil and Gas Law completed and to parliament for a vote. This must be completed to finish a Constitutional requirement to fully implement the new 2005 Iraqi Constitution. This was told to me a decade ago that this is critical to normalizing Iraq.  So this is all excellent news for us today…

Pimpy – Dinar Guru You can still see Iraq is taking the steps necessary to deal with corruption, update all their systems so they can keep better track of things and continue down the path to joining the international community…Iraq has taken all the steps necessary…It’s looking very good for Iraq as long as they stay on this path…

Clare – Dinar Guru  Article:  “Advisor to the Prime Minister: The stability of the exchange rate gives relative stability to gold prices”  Quote:  “The economic advisor to the Prime Minister, Mazhar Muhammad Saleh, confirmed the relative stability of gold prices in Iraq due to the value of the dinar… What determines gold prices today are the international gold exchanges, noting that the stability of the official Iraqi dinar exchange rate to the dollar gives relative stability to gold prices.”

Nader – Dinar Guru   Article quote:  “The Iraqi government and the Central Bank are dissatisfied with the nature of the US treasury’s dealings with Iraqi banks…There is an effort to lift the sanctions…”  They need to take off the sanctions of Iraq IQD.

Sandy Ingram – Dinar Guru  IMF’s report on Iraq’s economy.  This is a critical report dealing with Iraq’s…financial future…Iraq could easily be on the path to a higher exchange rate depending on how the country responds to the IMF recommendations...Iraq’s non-oil economy is expected to continue to its growth in 2024 after expanding by 6% in 2023.  The IMF also reported Iraq’s economy is projected to rebound in 2024…Iraq needs more sustainable non-oil growth according to…the IMF mission.

Militia Man – Dinar Guru  They’re not going to…build a country at 1310.  The math doesn’t work.  I don’t care how many times people try to figure that out.  Think about it for a second…1310  dinars to buy a pencil but if you can buy 100 pencils for one dinar because the dinar is worth $3.00, $4.00 or more. How many pencils can you buy?  Think about that in bricks, steel, sewer systems, infrastructure, lighting, military operations, airplanes, guns and weapons, grocery stores at 1310 as opposed to 2, 3, 4 bucks.  They specifically bring up and invoke ‘previous eras’ not me.  I just report that…

Pimpy – Dinar Guru  What is the difference between a mixed economy and a market economy?  In a mixed economy the government plays a more active role in regulating and controlling certain aspects of the economy while in a market economy, the government’s role is limited to maintaining a level playing field and protecting property rights…We know right now Iraq has a mixed economy…[with] a lot of state ran businesses…

Clare – Dinar Guru  Article:  “With its rise locally… Iraq’s gold reserves were revealed”  Quote:  “The economic advisor to the Prime Minister, Mazhar Muhammad Salih, revealed the size of the Iraqi gold reserve at the Central Bank of Iraq…Monetary gold falls within the diversification of the monetary authority’s investment portfolio, and the numbers indicate that it exceeds 132 tons of monetary gold and within the safe range of reserves.”

Pimpy – Dinar Guru  Deleting the zeros off the currency will not change the price on the ISX [Iraqi Stock Exchange].  Changing the exchange rate will have an impact on the ISX.

Clare – Dinar Guru  Article: “Central Bank: Inflation in Iraq decreased to 4%“

Sandy Ingram – Dinar Guru  Iraq’s stock market – A joke to many, a profit for others.  Article:  “Nasdaq signs New Agreement with Iraq Stock Exchange”.  This new Iraqi dinar stock market is now electronic and instead of taking three weeks for a transaction to complete it takes only five minutes.

Militia Man – Dinar Guru  Everybody realized they have all these income streams.  You realize it’s not just going to be oil.   The non-oil revenues, tourism, agriculture, liquid natural gas, natural resources, all those are going to be part of the future and so that’s really powerful.

Paulette – Dinar Guru   Community Comment:  “…The rate doesn’t matter but “freedom of movement of capital” is important.  That is Article 8 compliance.”  They cannot be Article 8 compliant if the country is functioning under a MCP.  A MCP [Multiple Currency Practices] includes a parallel rate of greater than 2% of the official rate by IMF definition.  Saleh said last year that the parallel rate is “REQUIRED” to be 2% or less of the official rate…This 2% or less needs to be maintained for a period of 90 days.  The parallel rate is still around 14% difference.