Dinar Observer Daily

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.

Clare – Dinar Guru  Article: “Tracy Jacobson: I will advance American interests and fight militia influence in Iraq”  Quote:  “Tracy Jacobson, US President Joe Biden’s nominee for the position of US Ambassador to Iraq, gave her opening remarks before the Senate Committee on Foreign Relations.”

Pimpy – Dinar Guru  Article: “Iraq is preparing to establish a project that changes the oil map”.   Does it affect energy producers?  Oh, it’s going to change the map alright!  If they can accomplish this, this is really going to be huge…

Samson – Dinar Guru  Article: “Early elections in Iraq.. Prime Minister stimulates Al-Maliki’s appetite for a third term“

Mountain Goat – Dinar Guru   …the economic and financial advisor to the Prime Minister, Mazhar Muhammad Saleh, proposed an “unusual” idea to establish a sovereign wealth fund. …Unlike the CBI reserves that are mandated by the IMF to cover the government expenses in time of emergencies, the SWF is more flexible and gives an additional pad of money for stability and security. This fund will also cut down the reliance  on oil revenue and help them move more quickly out of the rentier economy.  WOW!

Kaperoni – Dinar Guru For the past 2 to 3 years now Iraq has been trying to diversify their economy so that they are not totally dependent on oil. Although there has been progress, technically they still have at least 85% dependence on oil exports.

Paulette – Dinar Guru  Community Reminder [“He pointed out that the new currency entry does not mean the destruction of ancient coins, but will continue to trade for about ten years, pointing out that this period will enable the central bank to withdraw the old currency in accordance with the dynamics and mechanics in order to preserve liquidity In the market” This 2016 article says.They will coexist with 10 years.]  Exactly! And, this was further clarified that active trading in the Market Place will be upwards of two years while through the banks it would be at least 10…This is what I believe will be told to the citizens when they bring out the Fils and lower notes…IMSO, it won’t be a week or 90 days or even 180…Nor will they be cancelling the 3-Zero series for at least 10 years…They are currently following the Dr S plan to a “T”…

Pimpy – Dinar Guru  If there’s an exchange process all banks that are dealing in currency exchanges will be involved.  All you have to do is find your local bank that buys and sells foreign currency and just wait for the restrictions to be removed off the Iraqi dinar and once they change the exchange rate you can just walk your butt right on in there.  There is no special 800 number for that.  You can just go to your local bank and find out where the nearest bank is that deals with foreign currencies.

Nader From The Mid East – Dinar Guru   Article:   “Iraq Bulks Up Gold Reserves, Inch Up World  Rankings”  Quote:  “Their holdings have grown to 145.7 tons, a bump of over 3 tons compared to 142.6 tons the previous month.  This increase…is enough to nudge Iraq one spot higher in the WGC’s global ranking, landing them 31st place out of 100 countries.”

Sandy Ingram – Dinar Guru   Some of you appear to have lost faith…We know Iraq will thrive if there are no full – blown wars and even then the oil revenue would continue to go up.  No one is giving up on Iraq.

Clare – Dinar Guru  Question: “Since Iraq is removing the zero’s in-country then giving its citizens new currency at  an increased rate (greater than $1.00), will they remove the zero’s out of country (for us) before we can exchange? Will our 25K  notes become the equivalent of the new 25 dinar note then get its new value from Forex or will we get the Forex value for the  entire 25k note?”  WE WILL GET THE FOREX RATE FOR THE ENTIRE 25K NOTE. imo

Militia Man – Dinar Guru   If they have a real effective exchange rate like al-Sudani said, that the dinar is going to be stronger than the dollar, the parallel market goes away…Obviously the stronger the currency is the cheaper it is for Iraq to do what they need to do.  It’s a no-brainer.  It’s that simple.

Clare – Dinar Guru  Article: “Withdrawing has become easier.. Al-Rafidain begins deploying ATM machines in institutions and malls”  Quote:  “Al-Rafidain Bank begins deploying ATM machines in its main branches, and then institutions, commercial areas, and malls, respectively, in implementation of its strategic objectives”

Samson – Dinar Guru   Article:   “Rafidain Bank begins deploying ATM machines in its main branches”

Mountain Goat – Dinar Guru    …Just look at all the progress made just since December 2022 when Iraq announced they were finally entirely out of Chapter VII. And now the spigot is wide open…the final issues preventing the reinstatement are being dealt with one by one…my contact in the CBI told me there is a very high probability that we would see the currency swap out in this month of June and so we watch and wait.

Kaperoni – Dinar Guru   Floating the currency is the best option but only once they have created a diverse economy that is not dependent solely on oil.

Militia Man – Dinar Guru   The black market is going to exist if the United States dollar is less than the Iraqi dinar…There’s not much demand for the dollar now…They’ve got it under control.  Is it showtime? I sure hope so.

Pimpy – Dinar Guru  Article:  “Oil slides to four-month lows as OPEC+ deepens bearish sentiment”  If oil prices continue to fall, where is the incentive for Iraq to increase their exchange rate?

Mountain Goat – Dinar Guru  …Iraq’s exit from the list of “high-risk countries” …was officially announced by the International Task Force (FATF) last week. Yes, “the writing is on the wall” now as this is the BEST news…Iraq’s exit from the list of high-risk countries could not get any better. They are slowly clearing the way to the reinstatement, one obstacle at a time…They were not about to release the currency back to FOREX with this in place…WOW! WOW! WOW! news for us today

Buckeyetree – Guest Guru  Iraq continues to transform into the modern era with banking and now fiber optics. With security and stability and safety (banking laws against terrorism and corruption), investors / companies will find a good environment to do business...Praying with the blessings to be realized that this will be in the coming “days” or sooner.  Big plans for an improved Iraq and for ministries.