Dinar Observer Daily

Militia Man – Dinar Guru This is October 2024 and they still have yet to expose the 2024 investment side of the budget, yet they’re talking about the 2025 budget now. [The 2024 budget] adjusted amendments haven’t been published in the Gazette just yet.  Hopefully they’ll expose that at any time.

Mountain Goat – Dinar Guru   Article:  “IRAQ INCREASES RESERVES AT IMF BY 50%”  Quotes:  “A meeting of the Iraqi Cabinet this evening approved an increase in Iraq’s quota at the International Monetary Fund (IMF) by 831.9 million Special Drawing Rights (SDR), equivalent to 1.45 trillion Iraqi dinars [$1.1 billion] based on the exchange rate as of October 8, 2024.”;  “SDRs represent a weighted basket of major international currencies, and can be held as part of a country’s foreign exchange reserves.  Adding SDRs to a country’s international reserves makes it more resilient financially.”  Iraq could not be granted SDRs unless it was member of the IMF.  Did they move to Article 8 already? That is the question we seek. I believe they have with this sizable SDR..

Militia Man – Dinar Guru  They’re preparing because they’re going to have much of [the three zero currency] they weren’t able to get off the street back coming into the banks.  But what are they going to need for those folks that held that money…?  The project to delete the zeros is going to bring value.  It’s going to bring purchasing power…

Samson – Dinar Guru  Article: ”China dominates the Iraqi market: exports exceed $65 billion in 2024!”  Quote:  “Chinese Customs Authority indicates that China continues to strengthen its economic dominance in Iraq…”

Sandy Ingram – Dinar Guru   Here’s why joining the World Trade Organization is so important.  The WTO can open the door to new business opportunities, attract more investments, and create jobs.  It’s a major step towards boosting Iraq’s economy and connecting with the world.  Iraq’s Trade Minister…just announced Iraq is back at the negotiating table working towards becoming a member of the WTO… [I’ll] keep you updated on Iraq’s WTO progress…

Sandy Ingram – Dinar Guru   Here’s why joining the World Trade Organization is so important.  The WTO can open the door to new business opportunities, attract more investments, and create jobs.  It’s a major step towards boosting Iraq’s economy and connecting with the world.  Iraq’s Trade Minister…just announced Iraq is back at the negotiating table working towards becoming a member of the WTO… [I’ll] keep you updated on Iraq’s WTO progress…

Samson – Dinar Guru  Article: “Blinken in the Middle East next Tuesday”  Quote:  “US Secretary of State Anthony Blinken will arrive in the Middle East next Tuesday, on a new tour“

Militia Man – Dinar Guru  You have Al-Sudani calling on the House of Representatives to vote in their president.  The optics of them having 3 presidencies available all at the same time when/if…they revalue their currency is a pretty big deal.  The optics would really look good globally.  You got a strong foundation…security and stability at the borders… knocking on the door of the WTO…the TIR contract they signed days ago…international agreements.  Everything is gearing up for what? Iraq going international.

Clare – Dinar Guru   Article:  “Economist: Development Road Project Will Provide Iraq with Great Investment Opportunities”  Quote:  “The “Development Road” project consists of land and railway roads extending from Iraq to Turkey and its ports, with a length of 1,200 kilometers inside Iraq, and aims to transport goods between Europe and the Gulf countries“

Militia Man – Dinar Guru  The Development Road Project is going be massive.  It’s going to create an environment that’ll be seen for many decades long after I’m gone.  I’m sure of it.

Clare – Dinar Guru  Article: “Kurdistan Finance Deposits More Than 77 Billion in Non-Oil Revenues into Baghdad Treasury”   Quote:  “This amount represents the share of the general federal treasury from the non-oil revenues of the Kurdistan Region of Iraq for the month of June.“

Sandy Ingram – Dinar Guru   The average cost of living for one person in Iraq is $754/month.  This amount includes rent therefore when Iraq creates a safe environment hundreds of thousands of travelers could easily spend $2,000 a month on average in Iraq.  To understand how tourism can help change a country’s GDP you only have to look at Mexico.

Clare – Dinar Guru  Article: “Counterfeiting currency in Iraq.. Is the responsibility of the Central Bank or the government?”  Quote: “Two printers used in counterfeiting operations were also seized, as well as a yellow Renault wheel used in distributing counterfeit currency,” she continued, stressing that “legal measures were taken against the accused, and it was proven through the investigation that there is a person residing outside the country who visits the home of one of the accused from time to time and brings new and modern editions of counterfeit currency, which are distributed in Baghdad and Basra through one of the accused who has a relationship with one of the arrested accused“

Militia Man – Dinar Guru  Article Quote:  “The Trade Bank is opening depository accounts for deposits only…”  That’s the kicker right there… They’re enticing the people to come in bring in their hoarded money…Why are they creating bank branches specifically for bringing in deposits?  That’s the hoarded money…If they’re going to get it out…what’s the incentive?  Why bring all your money in at 1310? …They’re going to need incentive and I think the real effective exchange rate is going to be that incentive…

Mountain Goat – Dinar Guru   Finance Minister Taif Sami Mohammed stressed the need “to adhere to timetables to achieve economic reforms”.   Yes, Iraq is on a timetable, and I don’t think they are going to mess this one up under Al-Sudani as they have in the past.

Militia Man – Dinar Guru  Those people [Who have ‘hoarded mattress dinars’] are expecting the stock market to run big time when they change the value of their currency based off of a Real Effective Exchange Rate based off real assets, non-oil [revenue].  That’s what’s in focus right now.  It’s phenomenal.  This is a good sign of things to come.

Samson – Dinar Guru  Article: “Salaries will be delayed.. Fundamental changes coming to the Iraqi monetary and financial system“

Clare – Dinar Guru  Article: “Financial Advisor: Increasing Iraq’s IMF Share Is a Step to Strengthen Dinar Stability”  Quote:  “The Prime Minister’s Advisor for Financial Affairs, Mazhar Mohammed Salih, confirmed today, Saturday, that increasing Iraq’s share in the International Monetary Fund represents an important step in confronting the economic challenges facing the country and stabilizing the value of the Iraqi dinar. He explained that this increase constitutes an effective tool against exchange rate fluctuations and inflation problems, and contributes to enhancing investor confidence in the Iraqi economy.“

Militia Man – Dinar Guru  The evidence is abundant.  Iraq is finalizing her reforms.  With what?  The support of American partnerships especially with large economic reforms and financial aspects in Iraq…These things are going to be linking the East to the West and they told you, via what?  Iraq’s Development Road Program.  They’re going to need the freedom of capital movement.  That’s going to be the Real Effective Exchange Rate.

Mountain Goat – Dinar Guru   Have they reached some sort of benchmark in the electronic digital banking reformation? Probably…it seems they have made so much progress. Also remember all this liquidity in the banks from the stashes and hordes of currency now being deposited… Please connect the dots and see the oncoming storm of prosperity coming to Iraq.  Remember that we investors partake in this wealth when it comes to Iraq, but only when it comes as a byproduct of all these reforms. Yes, when they finally move to FOREX… the plan and thus the execution of the process for the plan is moving forward nicely…it seems at a more rapid pace as we near the end of this year.

Sandy Ingram – Dinar Guru   A parallel market refers to the trade of goods or currencies through distribution channels that are not authorized by the original manufacturer or the official regulatory body…and is legal…A black market refers to the illegal trade of good and services that are either prohibited by law or sold to avoid taxes and regulations.  Iraq has serious currency controls and this automatically facilitates the black market…Iraqi citizens are banned from drinking alcohol, so yes the alcohol black market is probably huge.  Iraq has another black market product, oil smuggling.  [Post 1 of 2….stay tuned]

Sandy Ingram – Dinar Guru  Iraq is one of the world’s largest oil producers yet the country struggles with shortages in fuel supply.  The central bank vice governor said in March 2024 that Iraq is fighting a booming currency black market.  He made this statement…three months after it became illegal to use dollars in transactions in Iraq…Some economists propose a bold strategy to address these twin challenges by introducing currency flotation.  The would essentially remove the CBI’s peg to the dollar allowing the dinars exchange rate to be determined by market forces.  It appears the more controls a country has the more room there is for a parallel market or a black market… Post 2 of 2]

Clare – Dinar Guru   Article: “US delegation arrives in Baghdad to prepare draft for “indirect” negotiations with Iran”  Quote “America is exerting strong pressure through Iraqi mediators to conduct negotiations with Iran regarding the future of the region. It wants to adopt the principle of a single basket in resolving all issues, unlike Tehran, which believes that each issue is separate…“

Mountain Goat – Dinar Guru  Iraq is going to experience a “redenomination” of their currency meaning to execute the process of swapping out larger three zero notes for newer…lower denominations ...when you take money out of circulation…You cause deflation, which is revaluing your currency or making it worth more. There is also all the other assets and variables involved that will FORCE the system to bring back the dinar to its nominal value, finally. They are…doing this redenomination…to “normalize” their currency back to their “normal” denominations, as before the sanctions took place. They will also need a “normalized” rate and not this current “suppressed” rate…

Samson – Dinar Guru  Article: ”US Senate enters the line of pressure on the Central Bank of Iraq”  

Kaperoni – Dinar Guru   A country’s currency and its value is not a random act or an arbitrary number.  An exchange rate is based on a country’s GDP, economic success. Until Iraq diversifies their economy the dinar will remain weak.

Sandy Ingram – Dinar Guru  Iraq is a different country and has grown significantly since 2014, however we are concerned ISIS is not completely destroyed, as many would believe, [My] second concern is oil prices are set to go down in early 2025 because demand is expected to decrease.  Because Iraq relies heavily on oil prices for salaries for government workers [we] along with the IMF and the Iraqi Parliament are concerned this could affect Iraq.

Militia Man – Dinar Guru  What will have a profound impact on the global financial system?  …IMO…is them at least reinstating their currency to what it was before.  Going 1 to 1 isn’t going to cut it.  Going to a full-blown reinstatement would do that.   Also having a Real Effective Exchange Rate applied would do that.  That’s the type of profound impact I’m expecting… Sudani mentioned a couple of times that the dinar is stronger than the dollar.  Keep all that in mind.

Clare – Dinar Guru  Article: “The College of Administration and Economics at the University of Mosul holds its international scientific conference on ‘Development and financial and economic stability to restore confidence in the Iraqi dinar’”  Quote: “The conference aimed to highlight the role of economic policies in achieving stability and restoring confidence in the Iraqi dinar“

Samson – Dinar Guru  Article: “Launching of the activities of the international scientific conference under the slogan ‘Development and financial and economic stability to restore confidence in the dinar’“