Dinar Observer Daily

Breitling – Dinar Guru  We have to watch the CBI.  Don’t listen to what any body else has to say.  Do not contemplate opinions or other ideas…

Kaperoni – Dinar Guru  …Until Iraq diversifies, creates the conditions, there will be no change in the dinar.

Sandy Ingram – Dinar Guru  Iraq has 3 significant tasks before we will see an increase in the currency’s value.  1.  Rebuild their infrastructure, which they are actively doing… 2.  Making the country safe for citizens and international investors.  In other words stopping the assaults against foreign investors.  International investors want to invest in Iraq because their investment will be worth more when the value of the IQD increases.  3.  Creating additional streams of income outside of the oil industry.  Iraq is actively making progress by implementing new factories…road projects connecting Asia to Europe and partnering with a neighboring country to build oil vessels…

Clare – Dinar Guru  Article:  “Al-Sudani: More than 60% of Iraq’s population is under 25 years old“

Militia Man – Dinar Guru   My take is a float won’t work in a digital world. I just don’t see it. I think they are going to make an adjustment to their Reel Effective Exchange Rate (REER) and I hope and expect it will be better than it was in a previous era. When I first got into this – the IMF had shut them down from $3.22 …so, when they reinstate – I think they will start there…maybe add some for inflation , and they probably will do a “managed float”…

Nader – Dinar Guru  As long as they [Iraqis] have money and they can buy and sell stuff they don’t pay attention to it [dinar RV].  That guy’s gonna have one million in his pocket or 1500 it’s gonna be the same thing.  It’s going to spend the same thing.  In the United States and Europe too they talk about…all over the world they talk about because they know it’s gonna happen…It’s an investment for the outsiders.  But for Iraqis it’s not an investment…Over there if we change the currency all we have to do is take that 2 millions and change them to two millions with small categories…

Militia Man – Dinar Guru  Federal Court specified their own timelines…They specifically stated 30 days from July 26, 2023 that the 2023-2024-25 budget has to be implemented by that date.  That’s 30 days.

Pimpy – Dinar Guru  I know a lot of you are eagerly waiting for the announcement that the exchange rate is massively jumped up to this large number because…this budget can’t function without a large exchange rate.  I’m saying that’s BS…

Militia Man – Dinar Guru  …I believe there was an article from the courts that Iraq had 30 days from July 26th for the budget to be implemented and for them to start spending…  for them to start spending –it’s a heck of a lot cheaper to buy things to rebuild with a at least a rate of $1 then 1310…Whatever rate they come out at I believe it will have to be strong. Alaq has said he is not going to float the currency…suggesting it’s going to be a strong rate.

Clare – Dinar Guru   Article:  “World Bank: Iraq’s economy is “fragile” and its debts have risen to $152 billion“.   Quote: “…noting that the Central Bank auction caused the redirection of hard currency to the parallel market, which led to a decrease in the value of the dinar against the dollar.”

Mountain Goat – Dinar Guru    … we have learned that the CBI is targeting a new revalued rate for the dinar of 1132 from 1320 and very soon…this is their target, and we know now it is.  Is this the last rate change we are looking for prior to the 1:1 coming revaluation and triggering the project to delete the zeros? Just be patient, the reinstatement is coming.

Militia Man – Dinar Guru  I think as far as everything being in place where Iraq is concerned with their re-instatement timeframe…I think the writing is on the wall that they are going to go into the international financial system…And we also expect to see the new small category notes (lower denominations) released in Iraq…and I am hoping this will happen in the next short period of time.

Militia Man – Dinar Guru  If they haven’t gone to the international stage of 1310 and they haven’t done it today, the chances of them doing it are highly unlikely the International world would accept Iraq at 1310.

Breitling – Dinar Guru  What makes you think they were going to revalue their currency?  They were depending on going international…and provide for the big boys – China, United States and Western Europe.  That’s still their plan they’ve never changed it.

Militia Man – Dinar Guru  [Financial] systems are in place that have been updated, modified and now they’re waiting for Iraq to be ready to go to the global financial system.  Once they get to that stage they’re going to be an Article VIII IMF compliant currency.  That’s our expectation…That’s what they’ve been saying for quite some time.

Enorrste – Dinar Guru  There is no such thing as an RV.  That’s the bottom line right there.  There’s a float leading to growth.  We can hope that it’ll grow fast and I suspect that it will but there certainly isn’t going to go from 1601 to $3.50 overnight.  It just can’t happen.

Militia Man – Dinar Guru  Article Quote:  “The parliamentary economic committee stands with the government and the central bank in fighting the speculators at the exchange rate…”  Everybody’s in agreement we need to fight this parallel market – we need to shut it down.  Again, what is the easiest way to shut it down?  Change the exchange rates to a Real Effective Exchange Rate shuts is down.  In a broad sense that’s what they’re actually saying without saying it…

Militia Man – Dinar Guru  …Alaq, the Central Bank Governor, he’s not new to Iraq.  This man’s been involved for many many years.  He led the Arab Monetary Fund.  He spent time there as the head honcho and now he’s back here to do what?  To finish this process.  He recently stated the Iraqi dinar and/or subsequently the project to delete the zeros from the exchange rate still exists.  If anybody’s telling you this is a joke you really got to think about it and say did he really say that?

Nader – Dinar Guru  What’s slowing down the RV…and it’s going to slow it down more and more until they find a solution for it.  It’s not the HCL…budget….What’s slowing down the RV is the corruption...You guys have no idea how much corruption going on in Iraq…It’s like a big mafia…bigger than the government for now…It’s going to be a big fight…When the corruption goes to 20%, 15%, 10% that’s where the RV is gonna happen…

BGG ~ You mean… just like here in Washington??

Sandy Ingram – Dinar Guru  Jeanine Hennis-Plasschaert, UN Special Representative in Iraq “Pervasive corruption is a major root cause of Iraqi dysfunction.  And frankly, no leader can claim to be shielded from it.”  There will be little to no increase in currency value in Iraq until multinational companies can safely invest in Iraq without corruption or safety issues.

Samson – Dinar Guru  Article:  “Adviser to the Prime Minister: The financial situation in the country indicates a high degree of stability.“

Militia Man – Dinar Guru  The House of Representative …Central Bank of Iraq…the legal departments all got together.  What are they talking about?  They’re talking about implementing allocating and spending money for this budget.  Anybody thinking this is not happening I have to disagree with you…

Clare – Dinar Guru  Article: “urgent… After a long wait, the Ministry of Finance finally publishes the instructions for implementing the budget“

Militia Man – Dinar Guru  It’s been weeks…and still to this day they haven’t actually shown us the spending ability of the budget.  Why is that?  It’s obvious – they’re not coming out at 1310, 1320 or 1305...

Tishwash – Dinar Guru  Article:  “The Sudanese government acknowledges the experience of dollar speculators and counts on September”  Quote:  “The launch of the budget definitely means the availability of funds… and this means that there is a large cash flow. ”  Al-Awadi added, “Many financial advisors in the government hope, with the release of budget funds, that next month will be a catalyst for the very large decrease in the dollar exchange rate.”

Militia Man – Dinar Guru  Article:   “The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises”  Quote:  “…The National Currency requires elaborate measures to maintain strength in value internally and externally, on the basis of the measures to be taken will activate the private sector and expand the import and reduce exports.”  I may have this wrong, but, to build out the country, they need to do just as it is being stated. They need to take extreme measures to get the imports increased and the exports reduced. Why? Because, it is far cheaper to re-build the country with strength in the national currency. It is the foremost item that is now needed.

Samson – Dinar Guru  Article: “The dinar is in the central recovery rooms.. and accusations against the Americans of creating crises”  Quote: “The sources of countries’ strength in the economic field are determined by several factors, foremost of which is the national currency, which requires elaborate measures to maintain its strength internally and externally, and the basis of these measures is to activate the private sector, expand the import sector and reduce exports.”

Pimpy – Dinar Guru   Article:  “Oil and gas…A law to resolve the dispute between Baghdad an 8th region, and a gateway to open all files”  The oil and gas law issue has not been resolved.  This has been ongoing for years…the hang up has a lot to do with the oil fields that were found after the constitution was written and they’re saying technically it belongs to them but Iraq is saying, no, those still belong to us…

Militia Man – Dinar Guru  The Oil and Gas Law…they keep saying they’re going to have things done.  I believe these guys have already done almost all the leg work… Article quote: “they’re in very advanced steps in accelerating the legislation of the oil and gas law…”  They’re basically saying we’re going to approve the law end of story.  That’s phenomenal…

Clare – Dinar Guru  Article: “What are the reasons for the weakness of the Iraqi dinar compared to other currencies? … An economist answers”  Quote: “Al-Mashhadani said, The other matter is trade, that is, import and export, without relying on the government sector in particular. In Iraq’s markets, as a result of the large discrepancy between import and export, it is natural that there is a great demand for dollars…The Iraqi dinar has been in an unenviable situation for nearly 20 years. After one dinar was equal to 3 and a half dollars during the past century, it reached more than 1550 against one US dollar, which caused problems in the Iraqi economy.”