Dinar Observer Daily

Samson – Dinar Guru  Article:  “AN EXPERT EXPLAINS THE BENEFIT OF HIGH OIL PRICES ON IRAQ AND EXCLUDES ITS IMPACT ON LOCAL CONSUMPTION“

Mountain Goat – Dinar Guru   There is a tremendous opportunity under the current president Trump administration to finally get this currency reform project done.  We can see the writing is on the wall to reinstate the dinar but these Iranian issues must resolved first if the US is going to work with Iraq to rebuild its economy. Trump is not about to have American companies come into Iraq at the level needed to support the massive rebuilding of their economy without security and stability. We can clearly see these Iranian issues are coming to the forefront now and being exposed for what they really are. This is a good thing…a VERY GOOD thing! 

Jeff – Dinar Guru   Article Quote:  “The goal is to reduce dependence on oil revenues which currently dominate the national budget”  Remember that is a World Trade requirement for Iraq, to have more than one revenue stream…They’ve got to have taxes…tourism…exports…All of this is required World Trade step to join…We’ve got to see the war end.  We’ve got to see Iraq finish the formation of the government…It can finish and form very quick and it can all happen in March…

Militia Man – Dinar Guru  Article quote:   “The US President warned January 27th if Maliki is reelected, America will no longer provide aid to Iraq.“  Everybody in the whole country realizes that whatever aid they get and how important it may be that if the people [Parliament] decide to do it.  Remember the people [citizens] voted for Al-Sudani in bulk, not Maliki…

Mountain Goat – Dinar Guru   The RV…will NOT happen until the issues with Iran are settled, per my CBI contact…We know this wealth transfer is coming and the RV is part of it…

Clare – Dinar Guru   Article  “Iraq and the risks of closing the Strait of Hormuz: financial repercussions and strategic options”  Quote:  “…A decline in oil revenues…could impact Iraq’s foreign currency reserves at the Central Bank of Iraq, estimated at approximately $110-115 billion. The government might be forced to draw on these reserves to cover current expenditures and maintain the stability of the dinar’s exchange rate.“

Jeff – Dinar Guru    When the US/Iran tensions started increasing, escalating that’s when out of nowhere Iraq had to introduce a delay because they’re not ready to go international until the US/Iran war is done.  Because Trump made it very clear that he will not tolerate Iranian influence within Iraq.  So you’re seeing a delay…Once the war ends, they can form the  government… leading to the rate change and going international.

Militia Man – Dinar Guru  As for the comments by the IRG that Hormuz is closed.  It was recently but not totally.  Traffic has been reduced for commercial tankers, yeah sure.  That is presently being addressed as US naval operations are in place to get things more active.  Insurance issues have been taken care of…Long-term closure is highly unlikely for the Strait of Hormuz.

Clare – Dinar Guru  Article:  “Bloomberg: Iraqi oil production has collapsed by about 60% due to the war” Quote: “Bloomberg noted that Iraqi oil production has fallen to 1.7 million barrels per day“

Jeff – Dinar Guru   I want you to realize how close you are to the rate change.  When you look at this more from the angle of what they’re doing versus what they tell you, you can see how close you are to the timing of the rate change.  When the war ends, they can quickly form the government…After the president is done and voted in there’s only three pieces left.  Announcing the prime minister, the prime minister completing his cabinet and then a final parliamentary vote and approval on his cabinet…If they extend Sudani’s term you get all three final remaining steps done which would allow them to potentially revalue in the remaining month of March.

Militia Man – Dinar Guru    Fundamentals are ready for the REER – real effective exchange rate.  They have the revenue streams… electronic payments…the ASYCUDA.  All of those things you should be paying attention to…I think the foundation for the country is 100% solid and it has been for some time but they needed to massage things along…I think the execution phase is underway.

Jeff – Dinar Guru   No body can tell you when the rate is going to change.  Right now it can be March.  It can be April.  It’s based on how long the war takes and how long it takes for Iraq to move forward with the formation of the government.  That’s what all this hinges on.

Samson – Dinar Guru  Article: “IRAQ’S OIL REVENUES EXCEED $6 BILLION IN ONE MONTH“

Sandy Ingram – Dinar Guru  I want you to truly understand the situation Iraq is in.  Iraq’s economy is based on US dollars…They trade mass amounts of monies across the border from Iran.  Iran also provides electricity to keep the lights on in Iraq.  Iran is also intertwined into Iraq’s government…Iran…is sending missiles to the Kurdistan region really, really bad and also attacking Basra in southern Iraq…the most painful for the entire global world is shutting down the Strait of Hormuz…Iraq does not want to hurt Iran’s feelings.  If you were in Iraq’s shoes I don’t think you would either.  But Iraq cannot afford to upset the United States.  There’s $100 billion dollars in their Federal Reserve account in US dollars…

Militia Man – Dinar Guru   Real effective exchange rate as a simple adjustment can…be simple and electronic.  The digital infrastructure …allows instant nationwide propagation.  There will be no need for massive physical note exchanges...The CBI can adjust the rate with minimal friction.  The system is already tested for large-scale electronic transactions.

Jeff – Dinar Guru    We all want to know when the rate is going to change.  Let’s talk about not only when the rate is going to change…but what’s really happening…Are they even having sessions of parliament?  Is the government doing anything?  Absolutely not.  Zero in Iraq.  They’re not doing anything right now…The formation of Iraq’s government is the lynch pin to the rate change…The formation o Iraq’s government gets them back on the world stage.  It’s a critical level of stability needed…

Mountain Goat – Dinar Guru  I encourage you not to give up. Iraq will reinstate the dinar and Trump will move ahead with his plan to revitalize the middle east and Iraq is a huge part of the plan. The Iraqi dinar is going to be a hinge-pin of a new basket of currencies. This new basket will support many currencies…

Mountain Goat – Dinar Guru  Can the Coordination Framework still be able to pick their candidate or is this now not allowed since they already pasted all the constitutional deadlines?  Parliament turned this over to the Judiicary to decide what to do next. If it is to be enforced, we can be assured that al-Sudani will be the candidate, since his party has the largest winner in the elections, as the ruling states….according to this ruling, al-Sudani is already now the candidate. If this ruling holds true the Coordination Framework no longer gets to choose the nominee... WOW! WOW! WOW! again…  [Post 2 of 2]

Samson – Dinar Guru   Article:  “MINISTRY OF FINANCE: IRAQ’S REVENUES EXCEEDED 124 TRILLION DINARS DURING THE YEAR“

Militia Man – Dinar Guru    Iraq is ready now for integration.  The CBI’s actions show the sectors being prepared for the next level.  They have a stronger capital base, better ability to finance trade projects.  It had digital upgrades…seamless integration with Swift MX, ISO-2022 and future CBDC corridors.  Compliance enforcement meets the gatekeepers (IMF, BIS, FATF -Financial Action Task Force) standards.  This positions Iraq to handle large-scale capital flows…without systemic risks, meaning integration for the WTO, capital markets and their REER (real effective exchange rate) readiness.  It all can proceed when prudent.

Sandy Ingram – Dinar Guru   Iraq has announced it is reducing production at major oil fields because the Straits of Hormuz is effectively closed.  So yes, oil is headed to $100 a barrel, it was $80 a couple of days ago, but it does little good if Iraq is reducing oil production…

Samson – Dinar Guru  Article: “90% of the cash block outside the banking system“

Militia Man – Dinar Guru  The CBI can and likely will proceed with a managed REER adjustment independent of the banking sector’s final consolidation.  As long as the core system is stable and compliant, which it increasingly is, mergers and compliance are ongoing, not prerequisites that must be 100% complete...Iraq is ready now or very close for the next phase.  The CBI  can move on a REER when prudent while the sector continues to consolidate in parallel.

Sandy Ingram – Dinar Guru  Many see light at the end of the tunnel for an IQD adjustment after this conflict is over.   We do not know when the IQD will adjust…If Iran is attacking northern Iraq, it is difficult to export oil through the north.  And if the Straits of Hormuz is closed, there is no way for Iraq to get its oil to market.  We can only hope this conflict ends before  Iraq experiences financial difficulty.

Jeff – Dinar Guru   The Trump administration is saying…the overall progress in the war against Iran is far ahead of schedule, far ahead of what’s expected…The more conservative leaning news was saying the war could take ‘up to’ four weeks.  I’m thinking right now maybe two and a half to around March 17th…

Clare – Dinar Guru  Article: “First political response to the Chief Justice’s proposals: Al-Khanjar supports the winning list’ criterion”  Quote: “The leader of the Sovereignty coalition, Khamis al-Khanjar, affirmed…adopting the ‘electorally winning list’ criterion in determining the largest bloc is a necessary step to protect the will of the Iraqi voter, puts an end to post–election deals, and enhances constitutional security and political stability in Iraq…He added that adopting the electorally winning list standard puts an end to ambiguity, protects the popular will from political manipulation, and establishes long-awaited  constitutional security and political stability…“

Militia Man – Dinar Guru  The stage is set for real effective exchange rate (REER).  They have the digital tools.  They have the non-oil growth.  These things are already in place.  It’s complete.  I think that’s what they’re doing.  We’re waiting for a prudent time frame. The way I see it, the next phase is closer than we’ve ever seen before…It looks really good.

Sandy Ingram – Dinar Guru  The IQD exchange rate is holding its own at 1392.52 IQD to 1 USD.  This is our main concern… However…Iran is playing an entirely different war than expected. Iraqi force fire teargas at pro-Iran protesters…Iran backed militias also attacked US bases in Iraq…However Trump may have used them to do his will…US forces have targeted Iran-backed militias with airstrikes in Iraq.

Mountain Goat – Dinar Guru   Article:  “CASH HOARDED IN HOME SAFES AND LOST TRUST IN BANK VAULTS”   …once again the CBI exposes the vulnerability of the economy lacking this liquidity in the banking sector. So …the CBI told us there will always be cash to some extent in circulation. But what will happen when the digital dinar is rolled out? How can they roll it out unless they retrieve this hoarded cash back to the banks? Will a ‘significant’ revaluation of the dinar then incentive the citizens to bring in these stashes?  [Post 1 of 2….stay tuned]

Mountain Goat – Dinar Guru  Remember we have been reading articles like this about this hoarded cash for years now and still not much has been done. This to me makes me believe that the only solution they have currently on the proverbial drawing-board is the Project to Delete the Zeros with a substantial revaluation of the dinar…remember…that the Project to Delete the Zeros must soon thereafter be followed by the reinstatement, pending inflation does not get out of hand. [Post 2 of 2]