{"id":15370,"date":"2018-06-19T23:17:31","date_gmt":"2018-06-20T04:17:31","guid":{"rendered":"http:\/\/www.dinarupdates.com\/observer\/?p=15370"},"modified":"2018-06-20T08:21:13","modified_gmt":"2018-06-20T13:21:13","slug":"dinar-observer-daily-june-19th-2","status":"publish","type":"post","link":"https:\/\/dinarupdates.com\/observer\/?p=15370","title":{"rendered":"DINAR OBSERVER DAILY \u2013 June 20th"},"content":{"rendered":"

Kaperoni\u00a0(Dinar Guru) –<\/span><\/strong> Some people have said the CBI has been closed since last weekend due to Eid al-Fitr.\u00a0\u00a0\u00a0Now that Ramadan is over it will be interesting.<\/strong>
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Kaperoni (Dinar Guru) –<\/span><\/strong> …The CBI never talked about people around the world bringing in their currency to Banks… The 10 years is the fact that the CBI will honor their currency nothing more<\/strong>.\u00a0\u00a0…all currencies go up and down<\/strong>…\u00a0Why do you think they go up and down<\/em>?\u00a0 Because they float.\u00a0\u00a0<\/strong>\u00a0It’s funny how many want to jump on the IMF bandwagon when I proved that the CBI must meet compliance before they could move to Article VIII.\u00a0 Yet those same people won’t give any consideration to actual IMF statements about moving to a more liberal exchange rate regime…\u00a0 because it doesn’t fit their RV, RI agenda!…\u00a0 Whether you agree with me or not...the fact is there will never be an overnight RV, RI event. The very thought of such a thing is contradictory to the purpose of monetary policy to begin with.\u00a0 There is a process…it is the same for any emerging-market country.<\/strong>
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\"Iraqi<\/p>\n

Spokesman for Sadr: Abadi among candidates to head government<\/span><\/strong><\/h1>\n

Iraq news –<\/strong> Spokesman for Leader of Sadrist Movement Muqtada al Sadr, Salah al Obeidi said Monday that current Iraqi Prime Minister Haider al Abadi is among the candidates to head the next government.<\/p>\n

In press statements, Obeidi explained that the issue of forming the next government will be clearer after Eid al-Fitr holidays, pointing out that if Abadi gains the confidence of other parties which won seats in the Parliamentary elections there will be no obstacles facing him to assume another term in office.<\/p>\n

The Parliamentary elections was marked by record low turnout. It was the first since Iraq declared victory over the ISIS group and the fourth since the 2003 US-led invasion that toppled Saddam Hussein.<\/p>\n

Article Credit: Thebaghdadpost.com<\/a>\u00a0<\/strong><\/em>
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Kaperoni\u00a0(Dinar Guru) –<\/span><\/strong>\u00a0When you reintegrate with the world’s Financial system you must exit the peg and move to a float particularly in Iraq’s instance this is important<\/strong>.\u00a0 The reason being as capital flows through the central banks Capital Account it will create inflation in the country.\u00a0To counter such inflation being on a float allows the CBI to compensate by allowing the currency to appreciate.<\/strong>\u00a0This is well-documented.\u00a0\u00a0The hope is that the currency will rise fast as a result of significant investment in the country and has been stated as the Balassa-Samuelson effect<\/strong>.\u00a0 If one is to believe the statement from the overview of Iraqi Finance 2018 they have significant investment lined up to come into the country.\u00a0 Many people have challenged me over the years to provide credentials. My response was I’m not asking anyone to put trust in what I say but to validate what I say in the very documents that I reference.
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Kaperoni\u00a0(Dinar Guru) –<\/span><\/strong>\u00a0How are you going to control inflation when large sums of money come into a country if you’re not going to float your currency<\/em>?\u00a0 All anyone needs to do is…read two or three of the documents from the IMF on the transition from fixed to float to understand how currency reform works.\u00a0\u00a0You cannot be pegged when large influxes of capital flow through the CBI, the only alternative to being pegged is a float.<\/u>\u00a0 This is not guesswork, the IMF themselves told the CBI back in 2012 when they were about to transition the move to a more liberal exchange rate regime.\u00a0The very definition of that is a float<\/u><\/strong>…we see the CBI follow the IMF time after time.\u00a0 Considering the IMF has an agreement with the CBI for monetary reform as well as trusteeship over the CBI the chances are very good that they’ll follow what they recommend.
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Kaperoni (Dinar Guru) –<\/span><\/strong>\u00a0\u00a0 Over the last couple of years there are more than 10 articles talking about floating the Iraq dinar. There is only one article that talks about the timing is not right to float the Iraqi dinar.\u00a0My money is on the directives from the IMF, Iraq will float it is the only option.\u00a0 By definition moving to a more liberal exchange rate regime is moving to a float.\u00a0<\/strong>Monetary policy is not a random act. Changing exchange rate regimes going from a peg to a float Etc all have individual purposes…they are used to stabilize economies or combat inflation.\u00a0\u00a0Iraq is expecting a large influx of capital …some say it’s going to be the wild west of the Middle East this will put severe pressure on the financial system of the CBI.\u00a0 The recourse is get off the peg move to a float to combat the pressure allowing the currency to rise and value.<\/strong>
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BTI-project.org – Iraq<\/span><\/strong><\/h1>\n

This is an excerpt from page 21 of this report…<\/strong><\/em><\/span><\/p>\n

8 | Currency and Price Stability<\/strong><\/p>\n

\"\"<\/a>The government\u2019s monetary policy since 2003 has focused on maintaining price stability and exchange rate predictability. The inflation has remained in the low since 2010. According to the CBI, the inflation rate is 1.4% (2015 estimates), while the World Bank estimates 2015 at -1.2%, and the country\u2019s international reserve volume also has decreased due to the sharp decline in oil prices. The independence of the CBI suffered a setback in January 2011 when former Prime Minister al-Maliki won a court ruling that placed independent institutions, including the CBI, under the control of the cabinet. In January 2012, the CBI raised the exchange rate of the Iraqi dinar to $1.19, causing a huge crisis that led the Supreme Judicial Council to issue an arrest warrant for CBI governor Sinan al-Shabibi in October 2012 on charges of corruption. Al-Shabibi received a seven-year prison sentence in absentia 2014, shortly before being acquitted of all charges. The difference between the official and parallel exchange increased from three percent in 2015 to nine percent in May 2016. The CBI introduced a number of policies to keep inflation low. The dinar remained widely stable and was worth $1.71 in early 2017.<\/p>\n

Article Credit: BTI-project.org<\/a>\u00a0(Special Thanks to David Tiff Duke)\u00a0<\/strong><\/em><\/p>\n

BGG ~ I have searched this, sourced it and verified what it said… This is, in fact, what it said.<\/span><\/h2>\n

However, I am not entirely certain this is not referring to an “internal valuation” of what they believe the IQD to be worth according to their own financial metrics (the BTI project – that is…)<\/span><\/h2>\n

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Mnt Goat (Dinar Guru) –<\/span><\/strong>\u00a0\u00a0I still persist that mid-July is very good timeframe to maybe see the CBI moving ahead again on the project to delete the zeros. Yes, I do believe it is coming.<\/strong>\u00a0Let\u2019s just keep our fingers (and toes) crossed that nothing else comes up to interfere.
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tlm724 (Dinar Guru) –<\/span><\/strong>\u00a0 Article:\u00a0 “dinar card is ready to use<\/em>”\u00a0\u00a0 Quotes:\u00a0 “announce International Islamic Ban announced launch first MasterCard card currency Iraqi dinar” “Ruffer used your card outside Iraq and through the Internet and the price of discharge according to the official price of the Central Bank of Iraq<\/em>.<\/u>”\u00a0 …very interesting. ...I researched the International Islamic Bank branch in Iraq…they do offer MasterCard and many benefits to their customers. Very good stuff…<\/strong>
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Kaperoni (Dinar Guru) –<\/span><\/strong>\u00a0\u00a0\u00a0\u00a03 days now passed the 3-month IMF requirement,\u00a0CBI continues to be in compliance at 1200 to $1<\/u><\/strong>.
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\"Moqtada<\/p>\n

Sadrist movement denies alliance with State of Law<\/strong><\/span><\/h1>\n

Iraq news –<\/strong> The political bureau of the Sadrist movement denied on Saturday news reports that the State of Law coalition would join an alliance between Sairun and Al Fatah.<\/p>\n

Diaa al-Asadi said in a statement the reports were baseless.<\/p>\n

The Sairun alliance which is backed by prominent Shia cleric Moqtada Al Sadr won the majority in the May 12 elections.<\/p>\n

Article Credit: Thebaghdadpost.com<\/a> (Charles Bright)<\/strong><\/em>
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Kaperoni\u00a0(Dinar Guru) –<\/span><\/strong>\u00a0\u00a0…Iraq is 96% dependent on oil sales what that means is they could never sell oil below market price because they would be under cutting their own budget.<\/u><\/strong>\u00a0 Remember 70% of the budget is wages as most Iraqi’s are on the state payroll.\u00a0Selling oil for $32 a barrel would prevent them for making payroll.\u00a0<\/strong>\u00a0Until Iraq and diversify and create a market economy and reduce the dependence on oil they are at the mercy of meeting that budget.\u00a0\u00a0The actual cost to produce a barrel of oil is about $10 yes but Iraq has many other expenses on top of that that make the sale of any oil for less than $40 not profitable<\/u>.<\/strong>
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Kaperoni\u00a0(Dinar Guru) –<\/span><\/strong>\u00a0 With 96% oil dependency Iraq must pay for everything from oil sales from infrastructure projects, salaries of employees, defense spending and of course a lot goes to corruption.\u00a0Iraq’s budget for 2018 was $88 billion dollars.\u00a0Iraq currently produces about 4.5 million barrels per day of oil.\u00a0They would have to make at least $62 a barrel to break even on the budget including production cost.\u00a0\u00a0This is why the idea of oil credits or selling oil for $32 is just not feasible.\u00a0<\/u>\u00a0 I’ve said for years the dinar that we hold that was sold outside Iraq will never go back…it was part of a controlled leak to prime the pump of sorts to create momentum for the Iraqi dinar worldwide which eventually will end up in other central banks around the world.<\/u><\/strong>
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Breitling (Dinar Guru) –<\/span><\/strong>\u00a0 We have new people getting into the dinar and they\u2019re trying to learn what you and I learned a long long time ago.<\/strong>\u00a0 The question is: \u201cIf there\u2019s trillions notes in the hands of the Iraqi citizens\u2026when the value increase wouldn\u2019t the vast majority of Iraq\u2019s citizens become instant millionaires?<\/em>\u201d\u00a0\u00a0No<\/u><\/strong>.\u00a0 Again, when the value of the dinar goes up in Iraq, remember everything is at a tenth of a penny, and when you go up to buy a coke or a candy bar it\u2019s at a tenth of a penny.\u00a0\u00a0So when it goes up a dollar, they are going to charge you a dollar for the coke\u2026Services and goods are going to rise up with the value as the currency goes up<\/u><\/strong>.\u00a0 But you and I don\u2019t live in that world.\u00a0 Why?\u00a0\u00a0Because we bought the currency with the US dollar<\/strong><\/u>\u2026They are not going to be instant millionaires overnight\u2026That\u2019s the difference.\u00a0 Iraqis did not exchange dollars for their dinar\u2026
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\"IraqiIraq’s former PM Nouri Al Maliki ‘not welcome’ in new government<\/strong><\/span><\/h1>\n

Nationalist cleric Moqtada Al Sadr and Iran-backed militia leader Hadi Al Amiri have found common ground in excluding the former leader<\/strong><\/em><\/p>\n

There is no place for former Prime Minister Nouri Al Maliki in the coalition to form Iraq’s next government, a spokesman for the recent election’s largest political bloc has said.<\/p>\n

\u201cNouri Al Maliki is not welcome to join the coalition,\u201d Dhiaa Al Assadi, a close aide to Shiite Cleric Moqtada Al Sadr, told The National.<\/p>\n

Last month’s parliamentary elections saw electoral lists led by nationalist Mr Al Sadr and Iranian-backed militia chief Hadi Al Amiri win the largest number of seats. The two leaders announced their intention to form an alliance of their political blocs on Wednesday.<\/p>\n

They called on other political groups to join them in a coalition. Notably absent from that invitation was Mr Al Maliki.<\/p>\n

It appears a decisive set back for Mr Al Maliki, who in the past managed to cling to power despite rising unpopularity.<\/p>\n

Mr Al Maliki took power in 2006 with the blessing of both the United States and Iran. But he rapidly alienated the country’s Sunni and Kurdish minorities by shutting them out of key security positions and undermining power-sharing agreements.<\/p>\n

During the 2010 elections, a secular bloc headed by vice president Ayad Allawi won the most seats in parliament. But Tehran backed Mr Al Maliki to remain in power, who was able to form a “national unity” government with the help of Mr Al Sadr.<\/p>\n

Mr Al Maliki was finally forced to step down in 2014 following the collapse of a third of Iraq’s military and police units in the face of an ISIS offensive which overran a third of the country. He immediately assumed the largely ceremonial role for vice president. He was replaced as premier by fellow Dawa Party member Haider Al Abadi.<\/p>\n

As general secretary of the Dawa party, Mr Maliki has retained political influence, though his State of Law coalition performed bellow expectations in the recent elections, winning just 26 seats.<\/p>\n

The blocs controlled by Mr Al Sadr and Mr Amiri control 101 seats, short of the 165 required to form a majority.<\/p>\n

Mr Al Sadr’s Sairoun alliance, which also includes the Communist Party and secular candidates, won 54 seats, while Mr Amiri’s Fatah coalition of Shiite paramilitaries won 47 seats.<\/p>\n

Incumbent Prime Minister Abadi’s Victory alliance took 42 seats.<\/p>\n

“His Eminence [Mr Al Sadr] has always welcomed Dr Al Abadi to join his coalition,” Mr Al Assadi said.<\/p>\n

The Shiite cleric has previously vowed that he would not allow Mr Maliki another term as prime minister.<\/p>\n

Even his former backers in Tehran may have given up on him. \u201cNouri Al Maliki was Iran\u2019s best person but they accept that he\u2019s not part of the next government because of the instability caused\u201d during his time in power, Renad Mansour, senior research fellow at London\u2019s Chatham House, told The National.<\/p>\n

\u201cAl Sadr\u2019s stance has been to side-line Nouri Al Maliki,” he added.<\/p>\n

Mr Al Sadr’s strong election performance marked the culmination of years of speaking out against corruption and government mismanagement.<\/p>\n

He first built his name outside of mainstream politics, as the head of the Mehdi Army militia which fought against the US occupation using sophisticated bombs likely supplied by the Iranians. But he has remained a staunch nationalist, critical of Iranian interference in Iraq.<\/p>\n

For his proposed coalition to succeed, Mr Al Sadr will need to overcome grievances from members of his own bloc who insist Tehran should not be permitted to interfere in Iraq’s affairs.<\/p>\n

Iran backs Mr Al Amiri, a militia leader who spent two decades fighting former dictator Saddam Hussein from Iran. He is also close to General Qassem Soleimani, commander of foreign operations for Iran’s Revolutionary Guards who has great influence in Iraq.
\nArticle Credit: Thenational.ae<\/a>\u00a0(Special Thanks to Charles Bright)<\/strong><\/em><\/p>\n

Charles Bright – NAILED IT!!<\/span><\/h2>\n

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Kaperoni\u00a0(Dinar Guru) –<\/span><\/strong>\u00a0\u00a0The CBI is now allowing consumers in Iraq to get cash back from point-of-sale transactions up to 2 million Iraqi dinar per day with a small fee.\u00a0Now why would they do this if there was a RV or RI about to happen? They wouldn’t! There is no RV or RI.<\/strong>\u00a0 As I’ve said over and over and over again monetary policy just doesn’t work that way.\u00a0\u00a0<\/u>Once the CBI accepts IMF Article VIII they will get off the peg and move to some kind of a float which will allow the dinar to gradually rise over time<\/u>. The pace of that rise is yet to be determined.\u00a0\u00a0<\/strong>Could the Iraqi dinar ever rise to a dollar in value<\/em>?\u00a0Yes I believe it could but it’ll take time. The process to raise the value will be based on sound monetary policy not some overnight event.<\/strong>
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Breitling (Dinar Guru) –<\/span>\u00a0\u00a0Phenomenal news out of Iraq<\/u><\/strong>.\u00a0 What happened\u2026is going to push the revaluation of the dinar that much quicker and that much more\u2026Security council\u2026letting the CBI out of sanctions that happen on June 6th or 7th\u2026It\u2019s a big deal for us<\/u><\/strong>.\u00a0 There are a lot of entities and persons in Iraq that have been sanctioned and the CBI was one of them.\u00a0 People don\u2019t realize this.\u00a0 The CBI could have revalued under the sanctions they were under.\u00a0 All they had to do was reduce the note count.\u00a0 So what does it mean for us?\u2026[Post 1 of 2]
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Breitling\u00a0(Dinar Guru) –<\/span><\/strong>\u00a0It\u2019s not a coincidence that Iraq got out of these sanctions knowing where the price per barrel is going to go and the next thing you know they\u2019re out of these sanctions\u2026\u00a0\u00a0So they are not going to have as many US dollars because the price per barrel is going to go down<\/strong>.\u00a0 What are they going to use?\u00a0\u00a0They are going to use the Iraqi dinar.\u00a0 So it\u2019s a big huge deal for us<\/u><\/strong>.\u00a0 They were going to revalue anyways but\u00a0now they\u2019re open to that much more of the market and the market is that much more open to them<\/strong><\/u>. \u00a0 It was a huge weekend.\u00a0 People should be excited.\u00a0 This thing is going to come down\u2026that\u2019s reality\u2026.Everything is set in place.\u00a0\u00a0They are going to revalue their currency.\u00a0 They\u2019re going to add value to it.\u00a0 They are going to have to…\u00a0<\/u><\/strong>\u00a0[Post 2 of 2]
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Iraq\u2019s parliament speaker calls for election rerun, after fire hits ballot boxes warehouse<\/span><\/h1>\n

BAGHDAD:<\/strong> Iraqi Prime Minister Haider Al-Abadi said on Sunday that the burning of a storage site in Baghdad where ballot boxes were kept was part of a plot to harm Iraq\u2019s democratic process, the first government indication the incident was deliberate.
\n\u201cBurning election warehouses … is a plot to harm the nation and its democracy. We will take all necessary measures and strike with an iron fist all who undermine the security of the nation and its citizens,\u201d Abadi said in a statement…<\/p>\n

Read more:\u00a0\u00a0http:\/\/www.dinarupdates.com\/blog\/<\/a><\/strong><\/em><\/p>\n

BGG ~\u00a0 Why would this be Sadr?? He loves his position and has nothing to fear from a recount… especially if these accusations about the IHEC (or HEC – whatever they are calling it this week) are true and we get an unbiased panel of 9 judges instead.<\/span><\/h2>\n

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Walkingstick\u00a0(Dinar Guru) –<\/span><\/strong>\u00a0\u00a0 It\u2019s important to understand Iraq has a seated government and Abadi is the Prime Minister.<\/strong>\u00a0 The election recount is just about being caused by government officials who are the “spoiled brats, the sore losers.”\u00a0\u00a0\u00a0Sadr will appoint Abadi as Prime Minister for a second term. He will not wait for a recount.\u00a0 The elections are over!\u00a0 The elections have nothing to do with Iraqi Dinar re-in statement.\u00a0<\/strong>\u00a0What you are now reading about in print like the UNSC release of ALL of the CBI\u2019s frozen assets includes six to seven tons of gold. . . $81 Billion . . . those assets, even though frozen, accumulated interest\u00a0 for so many years.\u00a0\u00a0Iraq could have revalued before these assets were released but not at the rate they can since the release.\u00a0 Enough funds IMO they can come out at over $3.00 . . .with a higher rate than we anticipated.<\/strong><\/u>
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Delta (Dinar Guru) –<\/span><\/strong>\u00a0\u00a0The UN Security Council (UNSC) released all remaining sanctions of the last 16 years.\u00a0 This means the rate can go back to over $3.00.<\/strong>\u00a0 In 2003 the UN took Iraq\u2019s currency, the dinar, down to 1\/10 cent to prevent Sadaam from using funds for terrorism.\u00a0\u00a0T<\/u>he frozen assets the UNSC released of the Central Bank of Iraq (CBI) were in the mega $$.\u00a0\u00a0 This is HUGE!\u00a0 Iraq will have their currency in a 2% compliant rate for 90 days on June 15 as required by the IMF.<\/u>\u00a0\u00a0<\/strong>The Iraq currency needs to see re-instatment shortly. The revaluation is separate from the Iraq Elections.\u00a0\u00a0Alak, the CBI governor has said, “Lift restrictions on exchange rate 1st half of 2018.”\u00a0\u00a0CBI will pull the trigger either the last week of June or last 10 days of June.<\/u><\/strong>
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Kaperoni (Dinar Guru) –<\/span><\/strong>\u00a0\u00a0\u00a0My guess is al-Maliki is behind this fire<\/strong>… fits his MO.\u00a0\u00a0Destroy the ballots than there can’t be a recount.\u00a0 Course his goal is a new election.<\/strong>
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