Dinar Observer Daily

Mountain Goat – Dinar Guru   Article:  “Iraq: Accession to the World Trade Organization (WTO)”  Quote:   “Iraq’s accession as a full member of the World Trade Organization is regularity in the global financial system in accordance with the criteria for liberalizing financial services”. Then yet more of the same good news and I quote –“access to foreign transfers in foreign currency to the real beneficiary, and compliance with the standards of the global financial system”.  Yes, Iraq is now a full member.

Sandy Ingram – Dinar Guru   Iraq made financial headlines when it boosted gold reserves by 2% in one day.  To understand why this is major news, let’s compare it to the fastest-growing currency against the US dollar, the Swiss frank.  The rapid rise of the Swiss franc, happened in 2015.  One single event is responsible for the Swiss franc blowing up.  The Swiss National Bank suddenly withdrew the peg of 1.20 franks per euro on January 15, 20215.  The central bank stated this was requested since the peg was no longer viable.  In the immediate aftermath…the currency surged 30% against the euro and 25% against the US dollar.  The decision shook the Forex market and put several foreign currency dealers out of business...  [Post 1 of 2]

Sandy Ingram – Dinar Guru  This is how your finances can change in one day…Here are two reason why the Swiss currency is so strong…Switzerland has a long history of low debt and fiscal responsibility.  And the nation has hard assets such as gold reserves…What is the bottom line?  Low debt and high gold reserves.   According to Statista, Iraq has extremely high debt, the national debt is estimated at $210 billion US dollars by 2028.  This is why Iraq booting its gold reserves by 2% in one day is breaking news and good news for Iraq…Once Iraq finds a path to reduce debt and increase revenue outside of the oil industry, its currency will increase in value.  [Post 2 of 2]

Pimpy – Dinar Guru  When you learn about what strengthens a currency – Iraq doesn’t have it.  They don’t have it at all.  The fact that 95% of their entire budget is reliant on oil tells you right there alone the currency cannot be stable enough to increase in value.  There needs to be more money generated inside Iraq through the private sector/public sector.  It just can’t all be oil…

Militia Man – Dinar Guru   The budget is an investment budget and they have not exposed it yet.  They’ve voted on it on the 12th last month, 21st went into the gazette and they still have not opened it...Vital project of getting their money and disbursements is what we’re waiting for.  What we’re hoping and expecting to see is a change in the exchange rate will be applied to their budget which we believe there’s a clause in the budget that allows for adjustments to the budget whenever necessary…

Mountain Goat – Dinar Guru  I am attempting to stay in close contact with the CBI during this revaluation process. …we still have not see any real news from the CBI (Ali Al-Alaq) itself on the project to delete the zeros. This project is pivotal in the revaluation and then the reinstatement…so why is the CBI staying so quite if they plan to reinstate the dinar anytime soon… I can’t figure out why the reinstatement has not already occurred. All the outward signs are way too obvious now. Is there still something to do? Since my contact in the CBI assured me the “green light” has been given a week ago why are we still sitting here? …My only guess is that maybe the CBI wants to revalue one more time…closer to 1000?

Pimpy – Dinar Guru  I agree it would be nice if they had a stronger currency.  I think it’d be more helpful.  They just don’t have the right things in place in order for them to jump up to a high exchange rate.  That’s why I said you’re going to see them doing it in increments.  It’s impossible for them to jump right into $3.22…All it takes is one small thing to happen within the oil market and it would totally collapse the entire economy. 

Kaperoni – Dinar Guru  We expect the dinar to rise gradually as a result of the success and growth of their economy as a result of the private sector investment and the increase in their own GDP Iraq would make the dinar the main currency in Iraq which they’re beginning to do.  They need to continue this transition to the digital dinar…

Clare – Dinar Guru  “Exchange companies are preparing for a major demonstration tomorrow, Monday ”  Quote: “The owners of exchange companies announced that they will stage a demonstration on the third of July in front of the Central Bank gate on Al-Rasheed Street, to demand a change in the bank’s policy, which they described as wrong.“

Militia Man – Dinar Guru   There’s some squabbling going on who’s going to control the Iraq exchange rate that’s been going on in the parallel market…they have to change some things because it hasn’t been quite working …What would cure the parallel market is obvious to everybody.  It’s an exchange rate change.  Something significantly stronger than the dollar would clear it up…They’ve said yesterday the situation has become more urgent to adopt new approaches that focus on blocking illegal channels and providing the facilities and flexibility required for legitimate currency trading markets.

Yada – Dinar Guru  Fear not! This currency will change because the demands of the budget will require it.   It will not and can not operate successfully at 1300-1.

BGG ~ You mean like it has for the last 20 years? It cannot operate like that?

Pimpy – Dinar Guru   Article:  “Top 10 weakest Currencies in The World In 2023”  As you go down the list Iran [#1] is one of them, which is not surprising.  They’re going through sanctions.  Vietnam dong is the other one [#2]…Quote:  “The currency is highly devalued currently but the chances are high for the currency improving considering the improvement in the economy.”  Did you see that?  This is coming from Forbes.  May 5, 2023…Iraqi dinar is 10th on the list…As you get their ducks in a row you’re going to start to see the value of their currency increase…

Militia Man – Dinar Guru   They’re saying Iraq ranks ninth in the world, that their raw wealth exceeds $15 trillion.  That’s massive…And they have a currency exchange rate at 1310? …the Real Effective Exchange Rate is not 1310…this is the first time I ever recall Salih or anybody else come out and say Iraq’s value [$15 Trillion].  What they’re doing to me in my view is they’re supporting they’re going to make a move and they’re giving justification why they can support a Real Effective Exchange Rate.

Kaperoni – Dinar Guru  The Securities law will soon be before the House of Representative.  This is something we’ve been talking about for a couple of years…I thought that was great because if they’re going to activate the Iraq Stock Exchange for international transactions it’s a big deal...this opens the door for so many things that are directly related to the dinar.

Clare – Dinar Guru  Article: “Advisor to the Prime Minister: The market value of Iraq’s raw wealth exceeds $15 trillion”  Quote:  “Iraq is one of the most important countries in the world, if not at the forefront of nations rich in natural resources or raw materials within the scope of the international classification of resources on the globe,“

Mountain Goat – Dinar Guru  article from Dec 15, 2021:  “MUDHHER SALIH, OUTLINED THE IMPORTANCE OF THE WHITE PAPER AND ITS REFLECTION ON THE ECONOMIC REALITY”  I will remind you once again it’s the White Paper that is going to get us to the reinstatement … I also point out the clause that says they intend to move back to FOREX or a FOREX like global trading platform for the currency. Folks if you have been following the news since January you can clearly see the parallels from what is happening on the ground to this plan…it is moving ahead.

Pimpy – Dinar Guru  Question:  “Is Iraq and the CBI collecting 3-zero notes?”  No they’re not collecting them right now.  If they were there’d be a redenomination...trust me we don’t want to go that route if we can avoid it.  I prefer the exchange rate happen in increments and they slowly remove the higher denomination.  This way we benefit from a higher exchange rate.

Militia Man – Dinar Guru   Question:  Does a contract rate make sense when it is time to exchange …or do you think its just going to be an international rate?  Militia Man:  I have heard lots of different things on that…personally I think we are going to see one exchange rate that’s going to be managed by the CBI and central banks in the region...

Pimpy – Dinar Guru  People keep saying Iraq can’t do this total rebuilding without changing the exchange rate.  I was thinking the same thing too.  And it was with good reason.  They could really benefit from that but the more research you do into a currency exchange rate and the things that are necessary that support it the more you realize Iraq is severely lacking in almost everything.  The only thing they have is oil behind it.  I know there’s people out there telling you oil should be good enough.  No it’s not.

Paulette – Dinar Guru   The issue is freedom of movement of capital.  That is what will open Iraq to the world.  Go Article VIII announcement  Go RI.  This is at the discretion of the IMF.  In the meantime, I hope Iraq restructures their currency very soon.  This is a CBI function and at their discretion.

Kaperoni – Dinar Guru    Community comment “Iraq should have a tradable currency before they join the WTO.”  They already do!  The dinar is globally tradable. The problem is no banks want to deal with it until Iraq’s central bank is in compliance with other world Banks under IMF Article VIII.

Mountain Goat – Dinar Guru   Parliament is now on recess until after Eid holiday. When they come back the focus is said to be all about two issues. How to solve the budget deficit without borrowing money and to get the Oil and Gas law passed and implemented…Seems now there is a new ignited will to get it done...I will be calling my contact in Iraq CBI and getting the full scoop, I hope, on why we have not seen the reinstatement and project to delete the zeros as they told me it would occur this week sometime. I will be asking if it is the Oil and Gas law holding it up or what? But something is holding it up, obviously.  

Pimpy – Dinar Guru  The WTO isn’t going to let them in unless they change their exchange rate.  That’s false…They have many members in there with even worse currencies than the Iraqi dinar…Vietnam is one of the members and they’ve been in there since 1950…For every US dollar you get 23,540 Vietnam dong.  To say they have to increase your exchange rate in order to be a member of the WTO is false. 

Clare – Dinar Guru  “After the end of its recess, the House of Representatives is preparing to pass 3 prominent laws”  Quote:  “Parliamentary committees intend, after the end of the legislative recess, to pass the Communications Law, the Investment Law, and the National Security Law, all of which serve the citizens.“

Militia Man – Dinar Guru  Member Question:  So whats the major hold up? Or is it just the process playing out?  Militia Man:    I think it’s just the process playing out. This is one of the biggest things I have ever seen in my lifetime…all coming together. All the electronic platforms…the new Iso2022 system…the new ATFX ready to go for forex currency trading and pairing…  Its now 2023 and Iraq has a 3 year budget for the first time ever…Ali Alaq came back from the AMF (Arab Monetary Fund?) to get this RV off the ground because the guy before him didn’t get it done. This is all coming to an end. There is no hold up- just the process coming to an end. …Everyone seems happy and we will be on pins and needles…hopefully between now and the third they will showcase this country. 

Mountain Goat – Dinar Guru  The saga about the Iraqi dinar RV only gets better and better.  Yes, we are VERY close to something big happening with the dinar…Yes, I do have some concerns about not seeing any news about the project to delete the zeros…but the CBI told me from their experience in the past they are not going to advertise the process at the end anymore until they are absolutely sure and are implementing it. Integral to the RV is this project to delete the zeros…Are the newer notes already printed? Yes, they are printed and in the vaults at the CBI…they are not yet in the ATMs and so we wait. One cannot happen without the other.

Pimpy – Dinar Guru  There are a lot of exciting things going on, things I was hoping would start to happen once the budget was passed.  We could see the wheels are rolling and things are starting to fall into place.  We have large groups of people looking for outside investors.  A report came out recently that said Iraq is stable, the government appears stable, the economy is starting to become stable.  If this is the case you can definitely see a bunch of outside investors coming in pretty quickly and that’s what we’re hoping for…

Clare – Dinar Guru Question about signed Budged:  “Does this mean we now move forward to posting in the Gazette?“ IT IS LAW NOW THAT THE PRES. HAS SIGNED IT.  THEY WILL GET IT IN THE GAZETTE. THAT IS JUST A FORMALITY.

Militia Man – Dinar Guru  The government and private banks – What they’re trying to do is establish what they’re call a qualitative shift in the Iraqi economy and enhance the stability…In revaluing a country’s currency you need security and you need stability…Their whole goal here is to tell you bits and pieces…but it’s not their job to tell you the date.  It’s not their job to tell you specifically the rate.  However they give you an indicator…10 years ago they felt it was worth $1.13 from the Central Bank.  That’s just what they were saying/suggesting.  They’re not giving it because it’s not their job to do so.  But there is a job to maintain some education.

Pimpy – Dinar Guru  The president has signed the budget finally into law.  What does that mean for Iraq?  How does that benefit those who are hanging on to the Iraqi dinar?  …Finally it is set in stone.  Iraq has passed a 3 year budget.  Infrastructure is going to be big on here…There has been a ton of money set aside to start investing into Iraq…We should see unemployment numbers start to go down and more people contributing to the tax payment.  This is exciting for Iraq as long as the corruption people don’t start showing their true colors everything should be really good.  So congrats to Iraq.