Dinar Observer Daily

Pimpy – Dinar Guru   Oh yeah!  It’s done.  Finally.  A 3 year budget has finally passed the House of Representatives.  Is this a good thing?  Is this a bad thing?  It really depends on the government that’s in place.  Now we’re going to see Maliki and his people’s true colors come out.  The budget has been passed.  They don’t have to kiss anybody’s butt.  The money has been allocated.  This is definitely going to be interesting and this is what I’ve been waiting for.  Let’s see this government’s true colors.

Samson – Dinar Guru  Article:  “Al-Hakim: Urges the House of Representatives to proceed with the entitlements that follow, such as the oil and gas law and other laws that have direct contact with the lives of citizens.“

Kaperoni – Dinar Guru  There are several articles that have been released from the prime minister’s office over the last few weeks stating passing the tripartite budget will put Iraq on the verge of a major reconstruction movement in all sectors.

Nader – Dinar Guru  With it’s approval, the budget now awaits the signature of the President of Iraq after which it will be sent to the Gazette to be enacted into law...

Clare – Dinar Guru  Article: “International Monetary comments on Iraq’s budget and re-warns of inflation in the currency”  Quote: “international monetary concern is due to fears that large government spending will lead to”inflation” in the Iraqi currency, which in turn leads to a spiral of economic deterioration affecting the future of the country“

Mountain Goat – Dinar Guru   …we are in a “vital” period since the three-year budget has been passed on Sunday June 11th.  On Tuesday it was announced that the approved budget would [go?] to the president to be ratified. So now we sit and wait. Literally, anything could now happen and is going to happen very quick from this point. In fact, this week could be pivotal.

Kaperoni – Dinar Guru  I want to remind everyone despite the fact that Iraq past a 3-year budget yesterday, Iraq still has a lot of work to do.  Parliament needs to pass several laws to encourage and support investment.

Paulette – Dinar Guru  Finally!  I have waited nearly 14 years to see what just happened…Stage is set.  Bring on the Oil and Gas Law NOW!!  The underlying basis is established by the Tripartite Budget…The arguments and fight should be over…

Militia Man – Dinar Guru  The 2023, 2024, 2025 budget having been very contentious took about 4 days to finish the reading and getting it done…but they were successful...it was about 5 in the wee hours of the morning they finished it and hammered it out.  What they’re going to do now from that point on is they’re looking to proceed with the entitlements that follow the budget which is the oil and gas law.

Clare – Dinar Guru  Article:   “The Iraqi Trade Bank and JPMorgan are discussing the development of banking operations”  Quote “…the directives of Prime Minister Muhammad Shia’a Al-Sudani to advance the country’s economy, and to ensure that the best services are provided to the Iraqi citizen according to the best.” Available methods and means within international standards, which will reflect positively on the Iraqi economy.“

Kaperoni – Dinar Guru  ‘an RV is in the budget.’  That is not how it works. The passing of this three tripartite budget gives Iraq the opportunity now to diversify their economy and begin significant reconstruction.  Only with the success and growth of their economy will the dinar go up in value.

Angel1 – Dinar Guru  This is no game.  This is real life.  There are a lot of people, my friends are there, are excited and encouraged because their economy is exploding.  It is exploding now.  Can you imagine what’s going to happen when that rate reflects the true value?  They can’t wait.

Clare – Dinar Guru  Member of the Parliamentary Finance Committee, Youssef Al-Kalabi Tweet “Tomorrow the budget will be sent to the President of the Republic for approval”

Militia Man – Dinar Guru  Who’s the authority?  Central bank is the authority to talk about the exchange rate.  The government is the authority to talk about the program, the rollout, the process.  That’s Sudani…

Pimpy – Dinar Guru  Article:  “What does JPMorgan’s willingness to support Iraqi banks mean?”  This is not good…this is like jumping into bed with the devil…What they’re trying to do is force Iraq to use U.S. dollars along with anybody else that deals with the IMF or the World Bank…it doesn’t mean we won’t benefit from it, for those who are invested in the Iraqi dinar, we will.  But I’m thinking more for the Iraqi people.

Clare – Dinar Guru  Question:  “Once they announce the Budget completed, does that give us the HCL? or is that a whole separate thing we need to deal with?”  THE HCL IS IN THE BUDGET...THERE IS AN ARTICLE …THAT STATES THAT.  THE BUDGET WILL BUST EVERYTHING WIDE OPEN…

Kaperoni – Dinar Guru  It appears tonight that Iraq Parliament has voted on the budget for the next 3 years. Excellent news.  This new tripartite budget is critical to Iraq diversifying their economy over the next 3 years.  I believe this is how we will see the dinar rise in value as a result of Iraq’s diversification away from oil and economic growth.

Babysmom – Dinar Guru  THE BUDGET WAS FINALIZED…IT WAS FINALLY APPROVED…THE FINALIZATION OF THIS BUDGET IS LEGENDARY.  THE BUDGET WILL NOW GO TO THE PRESIDENT OF IRAQ FOR HIS SIGNATURE AND THEN HE WILL SEND IT TO THE GAZETTE TO BE MADE INTO LAW. THE CBI CAN CHANGE THEIR RATE ANYTIME BETWEEN NOW AND THEN…

Pimpy – Dinar Guru  There’s a lot of chitter-chatter about what the exchange rate might be and I understand why.  But I’m not going to mislead people.  I told you if it goes up it’s going to go up in increments.  There are people out there claiming the exchange rate is going to be reinstated.  I understand where they are coming from. I do.  But I’m being realistic…we won’t know anything until they actually pass what’s going on.  Will they change the exchange rate?  We don’t know…Will it go down in value?  Will it go up in value?  We don’t know and I’m not going to lie to you…what I’m saying is hang tight and let’s see.  There are still a lot of things that are sill not finalized in the budget…

Clare – Dinar Guru   Article:   “Central: Commitment to strict currency financing instructions will significantly reduce the exchange rate”  Quote:  “Today, Saturday, the Central Bank revealed its plans to raise financial and gold reserves, while noting that adherence to foreign currency financing packages will contribute to a significant decrease in the dollar exchange rate in the coming days“

Militia Man – Dinar Guru  Article quote:  “United States Bank expresses readiness to support Iraq banks with foreign trade, financing operations and dollars”  That bank is JP Morgan Chase.  It’s worth about $4 trillion U.S. in value.  These guys mean business.  They’re not coming to Iraq to joke around.  Being they’re that large, they’re not there for a quagmire.  They’re there for the extravaganza of investment.  That’s incredible to see this at this specific time. 

Pimpy – Dinar Guru  There are several articles within the constitution that the budget is struggling with.  They want to make sure that this budget law is very clear about how it represents those articles…So it isn’t as cut and dry as in, ‘We pass a budget.’  There’s a lot of hurdles within the budget that keep it from getting passed right away.  What we see them doing is…trying to vote on certain articles…They’re piece meaning the entire budget before they pass it 100%...Everybody has to be on the same page...I said it was not going to be that easy.  I told you there’s more things involved than people realize.

Sandy Ingram – Dinar Guru  Iraq finally had an election and there is a new prime minister who is friendly with Iran.  Large sums of U.S. dollars began flowing into Iran who is under sanctions.  The United States immediately stopped the flow of U.S. dollars into Iraq ..and Iraq was on its way to looking like Zimbabwe .  Fortunately a delegation was called to Washington D.C. and for 6 days and nights they hammered out a plan.  We believe we are seeing the plan unfold…Iraq is all about making progress and when this progress continues the value of their currency will increase against the U.S. dollar.  This is what we are waiting for.

Pimpy – Dinar Guru  If the RV hasn’t happened by the time the currency is on the Forex it should show in real time…There’s a good possibility that before it hits the Forex that the RV will happen.

Moutain Goat – Dinar Guru  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… Integral to the RV is this project to delete the zeros. One can not happen without the other. Many time already, Al-Sundani has told the citizens of Iraq the dinar is stronger than the dollar. …Yet it is still less than 1/6 of a penny. So when will they make this move and prove it to the citizens and given them a new rate?

Deepwoodz – Dinar Guru  Comment:  “It’s the CBI that changes the rate not parliament. The CBI can do it anytime.”  Constitution Article 110 – The federal government shall have exclusive authorities in the following matters:  …Formulating fiscal and customs policy; issuing currency; regulating commercial policy across regional and governorate boundaries in Iraq; drawing up the national budget of the State; formulating monetary policy; and establishing and administering a central bank.”   Response: So although the CBI actually change the rate, they do it at the PM’s & COM’s discretion. Case in point, when Sudani became PM he fired Mustafa Galeh and installed Alaq.

Mountain Goat – Dinar Guru   The articles this week are still rolling out yet more currency reforms but most importantly they are now “enforcing” the new CBI currency mandates and sole use of the dinar with a special task force of policemen. WOW! WOW! WOW!   So we can [see] they mean business. I feel there is now no turning back. This is moving forward…we are heading for the long awaited reinstatement of the Iraqi dinar to FOREX not as a placeholder but open for business trading…We could possibly see what we are looking for prior to June.

Pimpy – Dinar Guru  The official rate, which is when the bank tell you it’s a fixed rate – not floating.  In the streets what you have is a black market where people will pay you more dinar than you would normally get from the bank in order to get the US dollars…it has nothing to do with it floating …there’s the official one [rate] and a parallel [black market] one [rate]…all you have to do is pay attention to what the Central Bank is telling you.

Militia Man – Dinar Guru  It’s the CBI’s job to make a rate change adjustment.   It’s not the parliament or it’s not the Council of Minister’s or the Finance Committee’s job to do that…

NORV – Dinar Guru …I have always stated with the success of Iraq’s economy will come the increase of the dinar. …some interesting news…Article:  “The Social Security Law includes many privileges for workers in the private sector”  This law was passed last weekend…This is critical to get people off the government payroll and working for the private sector which has been stated already will not only diversify Iraq’s economy but rebuild the country.  Article:  “Retirement: The insurance law will provide a salary for more than two million workers in the private sector.” They plan to launch this law in August. Which in essence means they will launch the private sector at that time. This is big news.  So we can expect significant changes come August to Iraq’s economy coming yet this year.