MNT GOAT: "WHY DOES THE IRAQI DINAR REMAIN CHEAPER THAN THE KUWAITI AND JORDANIAN DINARS?"
"Economic expert Hussein Al-Falluji revealed the reasons for the decline in
the value of the Iraqi dinar compared to the Kuwaiti dinar and the Jordanian dinat
(Full articles in the Articles Section) "The Iraqi government reiterated that there are no plans to change the national currency or remove three zeros from the Iraqi dinar. It also denied any intention to resort to external borrowing to address current economic challenges, asserting that Iraq's current situation is a
temporary liquidity crisis, not a structural financial crisis." "Political analyst Atheer al-Sharaa believes that US President Donald Trump is seeking to make Baghdad a gateway to the New Middle East project by imposing his dictates to serve the American agenda." "the government will be forced to change the dollar exchange rate in local markets after the economic downturn the country has witnessed as a result of the war in the region."
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🇮🇶💵 WHY DOES THE IRAQI DINAR REMAIN CHEAPER THAN THE KUWAITI AND JORDANIAN DINARS?
📢 MNT GOAT: Economic expert Hussein Al-Falluji recently explained why the Iraqi dinar (IQD) continues to have a much lower value than the Kuwaiti dinar (KWD) and the Jordanian dinar (JOD), despite Iraq being one of the world's richest oil-producing nations.
According to Al-Falluji, the value of a currency is not determined by oil reserves alone. A country's exchange rate depends on several key factors, including:
✅ Political stability
✅ Strong monetary policy
✅ Investor confidence
✅ Economic diversification
✅ Foreign currency reserves
✅ A stable banking and financial system
🏛️ While Kuwait and Jordan have maintained relatively stable economic and financial environments for decades, Iraq is still dealing with the long-term effects of war, political instability, corruption, and an economy that remains heavily dependent on oil revenues.
🇮🇶 Government Denies Currency Change Plans
The Iraqi government has once again reaffirmed that it has no plans to change the national currency or remove the three zeros from the Iraqi dinar at this time.
🚫 Officials also denied reports that Iraq intends to seek external borrowing to solve its current economic challenges.
Instead, government representatives insist that Iraq is facing a temporary liquidity shortage—not a structural financial crisis.
💰 They argue that Iraq still benefits from strong oil revenues and significant foreign currency reserves, and that current financial pressures are largely the result of regional instability and disruptions caused by ongoing conflicts in the Middle East.
🌍 Geopolitical Pressure on Iraq
Political analyst Atheer Al-Sharaa believes that U.S. President Donald Trump is attempting to position Baghdad as a strategic gateway for the proposed "New Middle East" project.
According to Al-Sharaa, Washington's objective is to strengthen Iraq's regional role while advancing broader American strategic and economic interests throughout the Middle East.
💲 Could Iraq Be Forced to Change the Dollar Exchange Rate?
Some economic analysts believe the Iraqi government may eventually have to adjust the official dollar exchange rate if economic conditions continue to worsen.
⚠️ The ongoing regional conflict has:
• Disrupted trade routes 🚢
• Increased economic uncertainty 📉
• Added pressure to Iraq's domestic economy 💼
• Slowed investment and commercial activity 📊
If these challenges continue, policymakers could consider exchange rate adjustments as part of broader economic reforms designed to stabilize the economy.
❗ However...
As of today, no official decision has been announced regarding any change to the exchange rate or any currency revaluation.
🏦 Iraqi authorities continue to maintain that the current situation is temporary and that existing monetary policies remain in effect while they closely monitor both domestic economic conditions and regional developments.
📌 Key Takeaway
🔹 Iraq continues to face economic and geopolitical challenges that weigh on the value of the dinar.
🔹 The government insists there are no current plans to remove the three zeros or revalue the currency.
🔹 Some analysts believe future exchange rate adjustments could become necessary if regional economic pressures intensify, but there is no official confirmation of such a move.
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