Dinar Observer Daily

Sandy Ingram – Dinar Guru   Oil price have risen to $80 per barrel.  This is good news within itself for Iraq.  However Iraq has another problem… Article: “Oil soars amid Strait of Hormuz shipping fears as Iran war drives prices higher“

Jeff – Dinar Guru   If they’re not getting closer to forming their government…(government formation is the lynch pin to your rate change) the war is most likely delaying it.  It’s important for you to understand that, this is your investment.

Militia Man – Dinar Guru  It looks really good still.  Obviously the peripheral looks rough, but I think everything’s going great…The expectation, a real effective exchange rate, digital dinar.  To me this is on track and promising for global integration…

Samson – Dinar Guru   Article:  “REUTERS: BRENT CRUDE SURPASSES $82 A BARREL“

Clare – Dinar Guru   Article:  “Trump: The Iranians have lost their military forces and leaders, and it is too late to negotiate”   Quote: “President  Donald Trump asserted on Tuesday that Iran has lost a significant portion of its forces and military leaders, indicating his refusal to negotiate now.  Trump said…Iran tried to open channels of communication with the United States, but he refused to do so…the time is no longer right to talk, the time is too late.”

Sandy Ingram – Dinar Guru   Article:  “Iraqi militia targets US base in Baghdad”  These kinds of actions from Iran backed militants in Iraq could have the US turning around and striking these militants right where they stand in Iraq.  Not a good situation.  Not a good situation at all…This is a developing story and we will continue to monitor updates as they emerge

Jeff – Dinar Guru   I talked about we’re looking to see this go of two directions.  Possibly to where a newly created Iranian regime government is going to want to work with Trump and have dialogue or it’s just going to go ugly sideways and Trump and the rest of the Middle East is going to keep blowing them up…That’s the direction it’s going right now…The news…said the Iran war could last up to 4 weeks.  I don’t think that … I’m thinking two and a half to three weeks…Trumps says the Iran  operation could take 4 weeks or less…

Clare – Dinar Guru   Article:  “Washington Sets Deadline for Iraqi Government Formation”  Quote:  “Washington has set a deadline of next Friday for Iraqi political parties to establish an independent government free from Tehran’s influence…“

Samson – Dinar Guru  Article:  “TRUMP’S PRESSURE GOES PUBLIC … MALIKI’S FATE TO BE DECIDED FRIDAY NIGHT“

Militia Man – Dinar Guru   For those who have followed currency reforms you might remember this.  Iraq’s current phase mirrors Turkmenistan’s transition back in 2009.  Turkmenistan first reduced cash circulation…enforced official rates and built reserves.  All those are things Iraq has done, reduced cash – Zane Cash, key card, electronic payments through the state – reduction.  They enforced the official 1300 rates for three years…Three years of stacking reserves – gold, non-oil revenues, low inflation and note reduction…If all of this holds true, the data strongly suggests it does, the logical next step is a managed REER adjustment when the CBI deems prudent.

Jeff – Dinar Guru    Everything is up in the air.  They’re working towards revaluing the currency.  They’re working towards everything.  The rate is very close to revaluing.  There’s just a small little delay in the mix.

Jeff – Dinar Guru    Bankers created and scheduled the rate change.  They  don’t do anything without schedules.  They schedule everything.  I will guarantee you the rate change has a schedule associated with it.

Militia Man – Dinar Guru There’s been a lot of misconceptions out there that nothing’s going to happen during Ramadan…There’s proof out there that suggests they can do it any time they want, whenever they want.  It doesn’t matter what day, time or year.  They can do it ‘effective immediately’ when they say so.

Clare – Dinar Guru   Article:  “Trump’s pressure goes public… Maliki’s fate to be decided Friday night”  Quote:  “the framework obtained a new extension of the American deadline for withdrawing al-Maliki’s nomination, and the deadline will end next Friday. This was discussed during the meeting, and al-Maliki informed them that he does not intend to withdraw his nomination at all. He told them that the two-thirds who nominated al-Maliki should withdraw his nomination, and he does not object to that.“

Pimpy – Dinar Guru   Just because you have a bunch of oil doesn’t mean you automatically got a very valuable currency.  There’s other things that take part in making the decision on the value of the dinar.  You have to have a stable government, which they don’t.  You have to have stability amongst the people, which they do for the most part…It’s not 100% stable but there’s a lot of stability there.  Unemployment is going down, inflation is way down.  These are the types of things that are taken in consideration when they decide what the exchange rate is going to be for the Iraqi dinar.  Right now we see there’s an issue, where?  In their politics.  That’s always been their main issue.

Kaperoni – Dinar Guru  Article: “Central Bank: Currency in circulation exceeds 93 trillion dinars during October 2025“

Jeff – Dinar Guru   Question:  “I thought Trump gave them until Friday to form a government?”  They said that but remember he gave them a deadline of this past weekend to also form the government and that deadline came and went, but then they come out today with a second deadline saying, ‘Oh, we’re only going to give you till this Friday.’  So was it last weekend or is it this next upcoming Friday?  …They’re all over the board.  I don’t recommend you take that information as gospel, solid, concrete information.  Take everything they say with a grain of salt.  Their news is scripted.  It’s all over the board. 

Mountain Goat – Dinar Guru   …my CBI contact…said we would hear all kinds of comments about the independence of the CBI and how they can adjust the rate anytime they want. Yes this may be true but…Some don’t even realize there are two types of rates, one is the program rate and the other the FOREX rate…the ‘program’ rate tied to the de facto peg can be changed  upwards or downwards by the CBI any time. This does not mean allowing the dinar back on FOREX…  [Post 1 of 2….stay tuned]

Mountain Goat – Dinar Guru   When the dinar goes back to FOREX it will be re-pegged and off the sole peg to the dollar and the program rate will go away. The newer lower denominations would have to first be rolled out. We are talking apples and oranges when we talk about these two rate types…The dinar can only have one ‘official’ rate. There is no such thing as an in-country rate and then a FOREX rate at the same time…When the dinar does go back to FOREX, the in-country rate (program rate) will change to the FOREX rate.  [Post 2 of 2]

Jeff – Dinar Guru  Countries that are on the US Treasury’s OFAC list, that’s a list of counties that support terrorism.  Right now Iraq remains on that OFAC list of countries until they revalue their currency.  This is the US government’s collateral to ensure the US gets paid when the rate changes… That’s the collateral used to ensure Iraq is going to revalue the currency and the United States gets paid.

Samson – Dinar Guru  Article:  “Iraq increases its holdings of US Treasury bonds by more than $1 billion“

Militia Man – Dinar Guru   There’s a lot of misconceptions out there.  Not a lot but some.  One of the things is that the Central Bank of Iraq is absolute in this regard.  Under Iraq Central Bank Law #56 o 2004 Article 2 the CBI has bull operational independence in monetary policy…Decisions on exchange rate regime, digital dinar roll out, reserves management, parallel market controls or a future managed REER adjustment are not subject to political, religious or seasonal calendars, including Ramadan.

Clare – Dinar Guru  Article:  “Strategic partnership between the Iraqi and German banking sectors to enhance financial integration” Quote: “They emphasized that this partnership will support enhancing the Iraqi banking sector’s access to German institutions and markets“

Pimpy – Dinar Guru  Remember most of the politicians in Iraq are Iranian-backed puppets.  Iran and these Iraqi politicians go hand in hand.  I think the best path for Iraq is Al-Sudani.  But we’ll see what happens…  Kurdistan’s government hasn’t been established.  Baghdad’s government hasn’t been established.  It’s going to take a little time.  The furthest thing from their mind is dealing with the exchange rate…Nobody knows what’s going to happen for sure…

Jeff – Dinar Guru   Historically Iraq [dinar] has always been above Kuwait [dinar] value…Today the value of the Kuwaiti dinar against the US dollar is $3.26…Historically Iraq was always a higher currency value than Kuwait…Undo what was done to lower the value of Iraq’s currency…OFAC sanctions, take the sanctions off, the currency value reinstates back to $3.22,  put some inflation on that over 22 years, probably somewhere in the the high $3 range, just shy of $4.

Mountain Goat – Dinar Guru  Hang on to your seats because the next couple weeks are going to be explosive, but right now we are in waiting mode until these Iranian issues are resolved…The Iraqi speaker of parliament has put all sessions on hold…until these issues are settled…my CBI contact… assures me that unless the Iranian influence in Iraq is addressed, along with tensions from Tehran, there will not be a reinstatement. The US will not sign off and will hold it up…Many of us may look at what is happening in Iraq as gloom and doom with this Iranian issues…Let’s keep looking at the glass as half full and not empty….things in Iraq are known to change suddenly and pivot…

Jeff – Dinar Guru   The formation of the government is the lynch pin to Iraq revaluing and getting back on the international world stage… Phase 1:  Resolve president and government formation.  Phase 2: The rate change. Phase 3:  Accelerate legislative and economic reform execution, deeper trade and financial integration.

Samson – Dinar Guru   Article:  “OIL PRICES SURGE DURING THE WEEK … BRENT CRUDE BREAKS THROUGH THE $71 BARRIER [Barrel? Likely translation glitch]“

Militia Man – Dinar Guru   Iraq’s oil revenues that were deposited with the United States Federal Reserve in New York has resurfaced.  A lot of people have been talking about it…Is it important?  Sure, it is.  But…It’s protection…It’s a good thing.  It’s not a bad thing…This issue dates back to 2003 when the Development Fund for Iraq (DFI) was established… to protect the money from lawsuits related to a period before the fall of the previous regime… The remaining debts approximately $40 billion owed to 46 countries… Legal constraints could expose these assets to seizure if they were to fall outside the preview of Unites States law…The DFI protections provide security and stability.  None of that has changed.

Sandy Ingram – Dinar Guru   We have a major subject to discuss today…Why the US still controls Iraq’s dollar pipeline…Understanding this system is essential for anyone watching the Iraqi dinar…Iraq’s oil is priced in US dollars…When buyers pay for Iraqi crude, these dollars…are deposited into an account belonging to the Central Bank of Iraq held at the Federal Reserve Bank of New York…Iraq can request access to its dollars but it cannot move them freely without meeting US regulatory standards…The United States can slow, block or restrict access…We’re talking about over $100 billion.  Iraq is a little bit wealthy!  Because of this dependency…Iraq’s sovereignty is only partial…Iran keeps whispering in Iraq’s ears that they’re not free…Part of making sure that nobody tried to sue, blackmail, strong-arm them the US put the money in the US Federal Reserve…