DINAR REVALUATION

Tuesday, December 16, 2025

Iraq 2025: Political Shifts, Reconstruction, and the Promise of Change

Introduction: Baghdad as a “Surprise Boomtown”
Iraq is showing tangible signs of economic and infrastructural growth, with Baghdad emerging as what The Economist called a “surprise boomtown.”
Prime Minister Mohammed Shia’ al-Sudani used construction imagery for his Reconstruction and Development bloc during the November 11 elections.
Billboards and campaign materials featured Sudani wearing a hard hat, symbolizing Iraq’s rebuilding efforts.
Yet the key question remains: can Iraq’s political system keep pace with the rapid changes on the ground?
Featured Snippet:
“While Baghdad is booming, Iraq’s political system faces skepticism about its ability to effectively manage reconstruction, economic reforms, and militia influence.”
Election Outcomes: Shia, Sunni, and Kurdish Dynamics
Shia Political Bloc
Sudani’s
Read also: Q & A WITH GINGER ABOUT HOW PEOPLE WILL RECEIVE NOTIFICATIONS AND THE PROCESS IN THE REDEMPTION CENTERS
Reconstruction and Development bloc won 46 seats, the most in the election.
Despite this, the Shia Coordination Framework insists the next prime minister serves as a ‘general manager’, implementing policies rather than creating them.
Sudani’s success contrasts sharply with his 2021 result, when his movement won only one seat.
Sunni Political Alignment
Sunni parties largely opposed Shia dominance and formed the National Political Council, aiming to unify against the Shia bloc.
Key early positions included preventing Mohamed Halbousi from being re-elected as parliament speaker.
Kurdish Internal Divisions
KDP and PUK disputes continue over control of KRG ministries.
These divisions could delay Baghdad’s government formation and impact national political cohesion.
Militias as Political and Economic Actors
Militia-affiliated parties gained significant ground in 2025 elections:
Sadiqoun (Asa’ib Ahl al-Haq) – 27 seats (up from 7)
Badr Organization – 18 seats
Militia candidates now occupy over 50 parliamentary seats, highlighting their political power.
Future prime ministers will need strategies to bring militias under state control.
Key Insight: US officials may insist on excluding militias designated as Foreign Terrorist Organizations, posing a challenge for coalition-building.
The US-Iraq Relationship and Foreign Policy
Iraqis across sects emphasized maintaining strong US relations while balancing historical ties with Iran.
Political maneuvering remains largely domestically driven, reflecting internal priorities rather than external pressure.
The next prime minister is expected to pursue continuity in Iraq’s foreign policy, including relations with the US.
Public Sentiment vs. Political Elites
Many Iraqis express disillusionment with elections, viewing them as largely symbolic.
The 2019 Tishreen protests and 2021 parliamentary results show limited impact of independent activists.
Critics argue the 2025 elections were a “billionaires’ election”, driven by high political spending, rather than popular enthusiasm.
Featured Snippet:
“Despite high voter turnout, many Iraqis remain skeptical that elections influence real government decisions, reflecting a gap between elites and the public.”
Signs of Change and Reconstruction
Route Irish, once infamous for attacks on US convoys, is now safe for civilian travel.
Al-Mutanabbi Street in Baghdad has been rebuilt after the 2007 bombing, restoring a hub for booksellers and cafes.
Freedom of movement and revitalized marketplaces in Dohuk and Erbil reflect tangible progress in everyday life.
Challenges Ahead for the Next Government
Militia control and influence
Economic reforms and infrastructure projects
Water and environmental crises
Bridging the gap between political elites and the general population
Key Insight: Iraq’s next government faces a moment of opportunity to enact meaningful reforms while fostering citizen trust.
Q&A: Understanding Iraq’s 2025 Political Context
Q: Who won the 2025 Iraqi elections?
A: Prime Minister Sudani’s Reconstruction and Development bloc won the most seats, but the Shia Coordination Framework remains influential.
Q: How influential are militias in politics?
A: Militia-affiliated parties now hold over 50 parliamentary seats, making them key stakeholders.
Q: Are Kurds united in national politics?
A: No, internal KDP-PUK divisions could delay Baghdad’s government formation.
Q: How does the public feel about elections?
A: Many Iraqis are disillusioned, feeling elections have limited impact on government decisions.
Conclusion: Iraq at a Crossroads
Iraq in 2025 presents a juxtaposition of hope and challenge:
Urban reconstruction and economic growth indicate progress.
Political fragmentation, militia influence, and public disillusionment underscore ongoing risks.
The next government has a historic opportunity to unify political elites, manage militias, and bridge the gap with citizens.
“After two decades of conflict, Iraq shows promise, but success depends on narrowing the divide between elites and the people.”
Official Updates and Community Links
🔹 Atlantic Council Iraq Initiative:
👉 https://www.atlanticcouncil.org/region/middle-east-north-africa/iraq-initiative/
🔹 Iraqi Government Official News:
👉 https://gds.gov.iq/en
🔹 Middle East Political Analysis Blog:
👉 https://middleeastpolicy.org/iraq-politics/
Hashtags
#IraqElections2025 #Sudani #IraqPolitics #MilitiaInfluence #BaghdadReconstruction #IraqiYouth #ShiaSunniKurdishPolitics #IraqDevelopment #AlMutanabbiStreet #RouteIrish #MiddleEastPolitics #USIraqRelations

FRANK26: Iraq Dollar & Dinar Update: CBI Conversion Window Ends and Exchange Rate Insights

Introduction: End of the CBI Conversion Window

According to Frank26, Iraq is witnessing a critical moment in its currency management. The Central Bank of Iraq (CBI) has closed its last official auction/conversion window, which previously allowed dollars and dinars to move across borders, including illegal flows to Iran.

This closure will cause increased demand for US dollars inside Iraq.
The spike in demand may lead to panic among citizens, but it is being carefully managed by the CBI.
The lower denomination dinar notes rollout is part of the preparation.

Featured Snippet:
“The CBI’s auction window closure triggers higher dollar demand in Iraq, managed to prevent public panic and prepare citizens for lower denomination dinar notes.”

False Supply and Demand Dynamics

The surge in dollar demand is artificial, not reflecting true market fundamentals.
Frank26 explains that the panic-driven demand will temporarily inflate the dollar’s value.
This is a
Read also: Q & A WITH GINGER ABOUT HOW PEOPLE WILL RECEIVE NOTIFICATIONS AND THE PROCESS IN THE REDEMPTION CENTERS
controlled measure by the CBI, aiming to stabilize the market during the transition.

Clarifying the Exchange Rate Mechanism

Inside vs. Outside Iraq

Contrary to some reports about a “dual exchange rate,” Frank26 clarifies:

Inside Iraq:
- Likely a fixed rate near 1:1 with the US dollar, reflecting domestic stability.
- Not pegged, but controlled to avoid market shocks.
Outside Iraq (Free Float):
- Determined by global supply and demand.
- Managed to cap the rate around $4.25, preventing extreme volatility.

Key Insight: The term “dual exchange rate” is incorrect. The proper understanding is domestic fixed rate vs. international free float, both controlled to manage stability.

Implications for Iraqi Citizens and Investors

Citizens will notice increased dollar demand at banks and exchange points.
The CBI is preparing the public for these changes to avoid panic.
Investors should watch the domestic fixed rate for stability and the external free float rate for potential arbitrage opportunities.
The lower denomination notes (LDS) are being introduced concurrently, part of the monetary reform plan.

Q&A: Understanding Iraq’s Dollar and Dinar Situation

Q: Why will the dollar value increase inside Iraq?
A: The CBI’s auction/conversion window has closed, stopping the last avenue of dollar/dinar outflows, creating temporary demand spikes.

Q: Is Iraq implementing a dual exchange rate?
A: No. There is a domestic fixed rate and an external free float, managed separately.

Q: What is the purpose of lower denomination notes (LDS)?
A: To modernize the currency system and prepare citizens for new monetary reforms.

Q: How will this affect the Iraqi dinar?
A: The dinar’s domestic stability is maintained, while external rates adjust to market demand, allowing controlled flexibility.

Conclusion: A Carefully Managed Transition

Frank26 emphasizes that Iraq’s monetary authorities are managing a delicate transition:

Domestic stability with a near 1:1 fixed rate
International flexibility with a managed free float
Preparation of citizens for currency reform and new lower denomination notes

“Everything I have been saying is now coming from their mouths to the world…’Dual’ is improper terminology,” Frank26 confirms.

This period represents a critical moment in Iraq’s financial evolution, signaling market readiness and CBI control.

Official Updates and Community Links

🔹 Official Blog:
👉 https://dinarevaluation.blogspot.com/

🔹 Telegram Channel:
👉 https://t.me/DINAREVALUATION

🔹 Facebook Page:
👉 https://www.facebook.com/profile.php?id=100064023274131

🔹 Twitter / X:
👉 https://x.com/DinaresGurus

🔹 YouTube Channel:
👉 https://www.youtube.com/@DINARREVALUATION

Hashtags

#IraqDinar #CBIConversion #DollarDemandIraq #CurrencyReform #LowerDenominationNotes #Frank26Insights #IraqFinance #IraqiDinarUpdate #ExchangeRateNews #RVUpdates #GCRNews

Frank26

There will be a slight increase in the value of the American dollar inside of [Iraq] only because the CBI action conversion window has come to an end. That was the last place where the American dollar and dinar were being funneled out...illegally...to Iran. Therefore, when this auction window shuts down, there will be a gigantic panic...because the demand for the American dollar will explode...

People in Iraq will panic and desperately look for it in any way possible, causing the value and the demand...to increase...But it's a false supply and demand. I believe the CBI is preparing the Iraqi citizens so they are not shocked by this event just like they are preparing them to receive the lower denomination notes.

It is not a dual exchange rate [that an Iraqi economist is proposing]. There will be an exchange rate inside...and there will be one outside because of supply and demand, not dual. I made a mistake. The fixed rate is inside your country, 1 to 1 more than likely on par with the American dollar, not pegged, and outside free float with management controls and cap the rate where they suggested at about $4.25. Everything I have been saying is now coming from their mouths to the world...'Dual' is improper terminology.

FRANK26: Soon I will be receiving thousands of locations where you will ...

CBI: Iraq to Develop Regulatory Framework for Virtual Assets

The first meeting of the National High Committee for the Regulation of Virtual Assetswas held in Baghdad at the Central Bank of Iraq (CBI), bringing together senior representatives from regulatory, legal, financial, supervisory, technical and communications bodies.

The committee reviewed global developments in digital assets and examined international regulatory models that balance financial innovation with monetary and financial stability.

Discussions focused on compliance with anti-money laundering and counter-terrorism financing requirements, mitigation of cyber risks, and the need for clear definitions, accurate classifications and a flexible, risk-based regulatory approach. The proposed framework aims to enhance transparency, protect users, improve service efficiency and establish a modern licensing environment.

The initiative forms part of a broader government strategy to build a secure and sustainable digital financial ecosystem, strengthen financial inclusion, and ensure the national financial system is prepared for rapid technological change while safeguarding Iraq's monetary sovereignty.

(Source: Central Bank of Iraq)

JEFF : Iraq’s Next Phase: Sovereignty, UN Exit, and Preparing for 2026 Reforms

Introduction: Iraq Enters Its “Next Phase”

Iraq is on the brink of a major international and economic transition in 2026. According to Jeff, recent developments show that both the US and the UN are completing their formal interactions in 2025 to allow Iraq full sovereignty and independence in its upcoming phase.

2025 marks the end of the old era
2026 is being described as Iraq’s “next phase” in articles and official statements
These preparations set the stage for comprehensive reforms, but do not indicate an immediate rate change at the start of 2026

Featured Snippet:
“Iraq’s next phase begins in 2026 with full sovereignty and international independence, setting the stage for major reforms without specifying an immediate rate change.”

UN Exit and Sovereignty Ceremony

On December 2025, Iraq and the UN held a formal stability ‘graduation ceremony’, marking the UN’s exit from the country.
UN Secretary-General Antonio Guterres personally attended the ceremony, highlighting the event’s significance.
The official last day of UN involvement in Iraq is December 31, 2025, symbolizing the
Read also: Q & A WITH GINGER ABOUT HOW PEOPLE WILL RECEIVE NOTIFICATIONS AND THE PROCESS IN THE REDEMPTION CENTERS
transition from external oversight to full Iraqi sovereignty.

International Positioning for 2026

Preparing for the Next Phase

Iraq is preparing to enter the international stage in 2026.
Foreign entities, including the US and UN, are stepping back to allow Iraq full autonomy.
This period will clear pathways for reforms, modernization initiatives, and strengthened international partnerships.

Clarifying Currency Rate Expectations

Jeff emphasizes: “This doesn’t mean the rate is changing in January 2026.”
While the groundwork for reforms is being laid, the exact date for any currency rate change remains unknown.
Iraq’s messaging focuses on proximity and readiness, not immediate execution.

Key Takeaways from Jeff

“Next Phase”: Iraq is entering a new international stage in 2026.
UN Exit: The UN will fully depart by December 31, 2025, ending formal oversight.
US Step-Back: The US is also reducing its direct involvement in Iraq’s internal affairs.
Sovereignty & Reforms: This transition enables Iraq to launch economic and political reforms with full control.
Rate Change Timing: The currency rate change is close but not guaranteed for early 2026.

Q&A: Understanding Iraq’s Transition

Q: Does the UN exit mean Iraq’s currency rate will change immediately?
A: No. The exit signals sovereignty and readiness for reforms, but the exact rate change date is unknown.

Q: Why is Iraq calling it the “next phase”?
A: The term marks a transition to full sovereignty, international positioning, and the launch of reforms in 2026.

Q: What is the significance of the graduation ceremony?
A: It formalizes the end of UN oversight, signaling Iraq is ready to operate independently.

Q: Are there immediate reforms expected?
A: Preparations are in place, but implementation may follow gradually as Iraq enters its next phase.

Conclusion: A Historic Turning Point for Iraq

Iraq is stepping into 2026 with autonomy, sovereignty, and readiness for major reforms.

The UN exit and US step-back create a clear international stage
Citizens and investors are watching for policy and currency developments
While the exact timing of currency adjustments remains uncertain, the groundwork for a new era of economic and international engagement is firmly in place

“The year 2025 ends the old; the year 2026 begins the new,” Jeff explains.

Join Our Official Platforms for Updates

🔹 Official Blog:
👉 https://dinarevaluation.blogspot.com/

🔹 Telegram Channel:
👉 https://t.me/DINAREVALUATION

🔹 Facebook Page:
👉 https://www.facebook.com/profile.php?id=100064023274131

🔹 Twitter / X:
👉 https://x.com/DinaresGurus

🔹 YouTube Channel:
👉 https://www.youtube.com/@DINARREVALUATION

Hashtags

#IraqNextPhase #Sovereignty2026 #UNExitIraq #CurrencyReform #EconomicTransition #IraqFinance #RVUpdates #GCRNews #IraqiDinar #InternationalPositioning #IraqNews #JeffInsights

Jeff

Iraq is going international in 2026. That's why the US and UN are ending their interactions with Iraq in the year of 2025 so that both parties or foreign entities will be out of Iraq so they can have their sovereignty in their new next stage in 2026 which is their new international beginning...

That gives them a clear pathway to jump in and launch the reforms in the beginning of 2026. That doesn't mean the rate is changing in January or 2026.

Iraq is revealing they're going to enter into their 'next phase'. That is a key little phrase they're using right now in articles. They're entering into their next phase in the year 2026. We are extremely close to the timing of the rate change.

Yesterday we had a stability 'graduation ceremony' between Iraq and the UN. The UN will be exiting out of Iraq and their last day is December 31, 2025.

Antonio Guterres of the UN flew into Iraq. They had a big formal ceremony...What they're suggesting is that the year '25 ends the old, the year of '26 begins the new. That doesn't mean the rate is changing at the beginning of '26. That's not what I'm telling you. Nobody knows the day the rate is going to change. I'm telling you it's close. I'm showing you it's close but I'm not telling you the rate is changing in January...