Dinar Observer Daily

Kaperoni – Dinar Guru  For many years now the process for countries is to create the conditions for economic success, then change their monetary policy to allow their currency to float.  Flotation allows a country’s currency to ascend or descend based on supply and demand as a result of that success.  The success of Iraq’s exchange rate and currency then is a direct result of the economic success within Iraq. The potential is excellent providing Iraq continues to move forward and progress and create the conditions necessary for economic success and growth.

Paulette – Dinar Guru   Question:  “Is Iraq still on point to enter the WTO on may 9th?”   Iraq has not yet passed the required Product Protection Act and the Steering Committee doesn’t even meet again until “mid-year”.

Clare – Dinar Guru   Article Quote:   “Saleh said…Calls for floating the dinar to end the gap between the official exchange rate and the parallel market may be possible in an economy in which the free market alone influences the movement of the balance of payments and not in an economy in which the rentier government sector is dominant and generates currency reserves.”

Militia Man – Dinar Guru   Article:  “Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate.”  We’ve seen a few articles over the last week openly talking about the types of regiments that are exchange rate oriented, whether it’s a fixed float or pegged etc.   Saleh has spoken about it, he says it [floating] is dangerous …the environment would not be good so it wouldn’t be the best choice… Circumstances for the country of Iraq which is still primarily a rentier, which means oil based, it’s best to have a fixed exchange rate…

Mountain Goat – Dinar Guru   I feel we have been in a critical period of the currency reform program since January of last year 2023.  Now we are in a “vital” period.  Like a game of chess, we are now in a waiting mode for the Central Bank to make their next move and rollout the second-rate change in-country to just over a dollar, that we were told is coming. Since they told us they now control the parallel “black” market, and that negotiations were successful in lifting sanctions on many Iraqi banks.

Kaperoni – Dinar Guru  It is highly unlikely that any bank will have anything to do with the dinar for quite some time. Banks are conservative by nature and the dinar could be quite volatile once they begin to float.  In the past we have talked about market makers and ECNs. These could end up being the method to facilitate your currency investment or through an established financial institution such as JP Morgan.  Time will answer these questions.

Pimpy – Dinar Guru  My personal feeling is they are going to take the zeros off.  Do I want Iraq to take the zeros off?  No.  I would hope they would leave it on and then revalue it with a higher exchange rate.  That’s what I’m hoping for.

Militia Man – Dinar Guru  Rebuilding the country is not going to happen anytime soon with 1310…Obviously they’ve got something else in mind because they’ve already said they’ve launched the projects, therefore there’s contracts involved.  What the rates are with the contracts that’s private information...They know how to keep things quiet until the right time…

Kaperoni – Dinar Guru  I remind everyone just two weeks ago the Central Bank of Iraq announced that they plan to end the currency auctions by the end of the year. If that is the plan, they must have a replacement which is the float.

Clare – Dinar Guru   Article:   “Specialist: Floating the dinar is economic suicide”  Quote:  “Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate…adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising prices“

Paulette – Dinar Guru  Article:  “Specialist: Floating the dinar is economic suicide”   As Saleh was stating but only stronger wording.

Samson – Dinar Guru  Article: “The largest gas field in Iraq is close to seeing the light: a wealth that will reduce the import bill“

Kaperoni – Dinar Guru  A country’s currency is not some random act. An exchange rate is based on many factors including: reserves, GDP, economic growth etc. Iraq has a long ways to go and must pass laws to encourage investment. Only with the success of Iraq’s economy can the dinar rise in value.

Clare – Dinar Guru  Article: “Advisor to the Prime Minister: The dollar exchange rate in the parallel market is gradually approaching the official one”  Quote:  “Saleh, explained the dangers of the exchange rate fluctuations in the event that demands for floating the dinar are met, while confirming that the dollar exchange rate in the parallel market is gradually approaching the official one…”

Pimpy – Dinar Guru  Some of the bigger points we see inside the Iraqi dinar community such as, ‘Let them reinstate the exchange rate to $3.22 the old rate.‘  That’s not the old rate. That’s been a myth for a long time…The $3.22 rate was there but that was not the one they left when it became a devalued currency. It was something like $1.52.  The other one [myth] is the
hydrocarbon law that once it passes then the Iraq citizens are going to get payments. They’re not going to get payments.  Read the law, nowhere does it say they’re going to get payments.

Militia Man – Dinar Guru  Everything is falling in line for Iraq to go international.  You haven’t see the salaries paid yet…you haven’t seen the oil start pumping yet into Turkey…Why?  Because they haven’t shown us or exposed an international real effective exchange rate.  That’s my view on it.

Pimpy – Dinar Guru  Community comment “Parliament doesn’t have to vote on a budget…” They do whenever you make  amendments or changes...If you’re going to change something in there you have to vote on the amendments…  Community Question “So  you’re saying if they’re gonna change the exchange rate on a budget they have to vote on it?”  That’s correct.  Yes. 

Clare – Dinar Guru  Article: “On a tour that included Karbala, Babylon, and Ur… Two American tourists: We felt  completely safe in Iraq”  Quote: “Hudson and Emily Crider, travel the world on a mission to explore each country and document its  cultural experiences…In a series of more than 20 videos, the Criders detail what it’s like to be an American tourist in Iraq,  offer travel tips and debunk misconceptions about the country…They said: As Christians, we found (Karbala) a wonderful city to see and the people were very welcoming. It is really special that they allow people of all religions to come here and learn more  about their beliefs.” 

Nader – Dinar Guru  The budget have to be approved by the parliament…Sudani cannot make a decision by himself...The budget doesn’t have to be approved by parliament…it’s not true.  They have pass by the parliament and parliament have to vote for it.  Any changes on that budget the parliament have to agree into it and have to vote for it and have to sign it and send it to Sudani and then the president of Iraq…It is active yes but not completely active.  Any changes have to be approved by the parliament of Iraq.

Militia Man – Dinar Guru  When you talk about drop the three zeros…Al-Sudani’s goal is to bring purchasing power to the his citizens.  When he said $0.76, that’s purchasing power.  It’s not a lop.  It’s purchasing power.  If you have a lop you don’t have purchasing power, you just have a change in denomination…They’re going to bring purchasing power to the citizens.  All of that is happening before our eyes.  

Pimpy – Dinar Guru  Question:  “If they delete the zeros will our dinars drop in value?”  If you’re in Iraq you don’t lose any value…People who are invested in the Iraq dinar…EXAMPLE:  Let’s pretend like the new exchange rate has changed and you can get $1 US for every 1 dinar…If you had the 25,000 dinar, the 1 to 1 would be perfect without them deleting the zeros.  That’s because you would get $25,000 for your 25,000 dinar.  But if they delete the zeros…your 25,000 dinar is now reduced down to a 25 dinar.  Even if they go 1 for 1 that means you’re 25 dinar is only worth $25.  So yes, your dinar would drop in value if they delete the zeros before the change in the exchange rate happens.

Mountain Goat – Dinar Guru    …What will May bring us investors? I have to tell you that April’s news was amazing and I don’t know how the news can top last month except maybe give us what we are looking for. Am I saying its going to RV in May? Of course not…no one knows the date of this event…Does it seem that we are very close? Yes, it seems this is just around the bend and the finish line is in our sights. …there is a huge glimmer of hope we could see the RV very soon.

Dinar Investor – Jeff   Article:   “Parliament expects the arrival of the 2024 budget schedules”  Quote “…There are efforts to guarantee the right of many segments in the items and schedules of the 2024 budget but they cannot be judged without waiting for the numbers they contain.” The rate has to change before parliament can approve the amendments to this budget.  This is why I showed you the final countdown a few days ago because I knew this was coming forward and here it is for you…

Breitling – Dinar Guru  The threat of a lop is still the same as when I got into this investment…The lop question is based on hyper-inflation …verses policy inflation.  The Iraqi dinar is stable.  It goes up, it goes down but it’s not major like what Zimbabwe and these countries where it was massive inflation.  No body could control it.  Iraq has complete control of the Iraqi dinar …The Iraqi dinar is a completely different ballgame.  It’s not hyper-inflated because of the markets.  Iraq doesn’t have a customer problem…production problem.  Iraq has a policy issue.  The people at the top know what they are doing.

PompeyPeter – Guest Guru  Sudani has said on several occasions talked about commencement of the reconstruction of Iraq in the month of April.  Salih the economic advisor talked about them spending 50% of GDP in April.  Well he said within two weeks which would take us to the end of April…In order for those things to happen it means the investment side of the budget has got to be opened.  They’re not going to be doing all these things at 1310.  We know the contracts cannot be written in dollars anymore.  They’re in IQD.  Again these things are not going to be done at 1310.

Militia Man – Dinar Guru  Quote on X [Formally Twitter] There’s some information out there today that says the Central Bank of Iraq’s governor has advised citizens to get ready for a currency exchange…Whether it’s true or not we’re going to find out…The reason why I bring it up is because that kind of to be expected, they’re having financial inclusion…they’re talking about that.

Samson – Dinar Guru  Article:  “URGENT: Sudanese Advisor: The 2024 budget has entered into force… and there is no need to send its schedules to Parliament”

Militia Man – Dinar Guru  Article:  “We will see the dollar decline in the black market soon…the central bank’s credit rating [from the World Bank] is an A++ and exceeded the United Arab Emirates…”  That’s the prime minister’s advisor talking…That’s phenomenal.  It’s big.  It says a lot.  It says they have trust.  It says Iraq has the ability to pay back their bills.

Dinar Investor – Jeff   Mid last week I posted  “The Final Countdown”   …Here’s the reason why right here…The approval of Iraq’s budget is waiting on the rate change.  That’s why it’s been outstanding/ pending for 6 weeks.  This week we’re entering into will be its seventh week.  In order for them to complete and approve, the budget is waiting for the rate to change …You’re seeing countless articles on this.  This is a critical piece to the timing of the rate change. 

Mountain Goat – Dinar Guru  The Minister of Commerce and Chairman of the National Committee concerned with Iraq’s accession to the World Trade Organization, Atheer Daoud Salman Al-Ghurairi…Article quote:  “…the completion of the files for the initial offer of goods and services within the files for joining the organization”.   No, they did not yet announce Iraq’s full
accession to the WTO but this is certainly getting close…I assume sometime soon, the National Committee will hold its third meeting with Iraq on the accession review…  With the US now backing Iraq this should move along quickly now.