Introduction: The Dollar Aid Threat Looms
What if President Trump carries out his threat to cut or reduce US dollar aid to Iraq?
This is not speculation — it is a real factor that could influence Iraq’s currency reform process and delay the long-awaited Iraqi dinar reinstatement (RV).
Meanwhile, the Iraqi Central Bank continues moving forward with reforms quietly and systematically. These reforms are crucial for reinstating the currency at a higher nominal rate, not just a redenomination.
Current Status of Currency Reform
The Project to Delete Zeros is ready but awaits political stability
Nouri al-Maliki’s insistence complicates timing
Mohammed Shia al-Sudani’s nomination could accelerate the process
Central Bank is prepared to execute currency reinstatement and reforms as soon as conditions allow
RV vs Reinstatement
Many call it the RV, but technically it’s a currency reinstatement:
Rate will jump from the suppressed 1320 IQD to the new nominal rate ($4+)
Unlike other countries, Iraq is not fighting hyperinflation, but resetting to pre-sanction 1991 levels
Redenomination is a straightforward financial process, not a “military operation” as some speculators claim
Political Impediments: Iran & Corruption
The main obstacle has always been Iranian influence and domestic corruption:
Corruption schemes have slowed Iraq’s currency reform progress
Some local players exploit corruption as a way of life
US support depends on five key requirements being resolved (per MNT GOAT 9/16 Newsletter)
Once resolved, the Central Bank can execute reforms efficiently.
US Dollar Aid: A Critical Lever
If the US cuts or reduces dollar aid, consequences could include:
Pressure on the Iraqi budget
Potential delays in financial stability reforms
Ripple effects on the timing of the currency reinstatement
Increased leverage over Iraq’s political decision-making
This is not merely theoretical — the US still controls much of Iraq’s dollar flows, influencing currency and economic stability.
Timing: Why This Week or Weekend RV Is Impossible
Ignore false promises from self-proclaimed “intel gurus”:
Claims of a military-style RV operation are absurd
RV cannot happen until:
Political issues are resolved
Central Bank readiness is matched with US backing
Currency reinstatement logistics are fully aligned
Even if the election sees a breakthrough, the process cannot be rushed — it requires methodical, deliberate execution.
Prayer & Perspective: Patience Is Key
As one blog follower beautifully wrote:
“Be still, wait on the Lord, my modern David will slay the so-called giant of Islam. It will fall; they are already begging for mercy, but it will not come as they have sinned so greatly with their blasphemy, disregarded all warnings for the Lord, and now HIS WRATH WILL CONSUME ALL WHO CURSE THE CHOSEN!!”
Patience, observation, and discernment remain critical as this situation unfolds.
Featured Snippet
What happens if Trump cuts dollar aid to Iraq?
Reduced US dollar aid could delay Iraq’s currency reforms, affect budget stability, and postpone the Iraqi dinar reinstatement (RV) until political and Central Bank conditions are aligned.
Q&A: People Also Ask
Q: Is the Iraqi RV happening this week?
A: No. It is impossible under current political and financial conditions.
Q: What is the difference between RV and redenomination?
A: Iraq’s RV is technically a currency reinstatement, increasing the suppressed rate to a new nominal value, not a typical redenomination due to hyperinflation.
Q: What role does Iran play in delaying the RV?
A: Iranian influence and domestic corruption have been major obstacles in implementing Iraq’s currency reforms.
Q: Does the US control Iraq’s dollar flows?
A: Yes. US dollar control is a key leverage point in timing and execution of currency reforms.
Final Thoughts
The RV is not about timing speculation. It is about:
Political resolution
Central Bank readiness
US oversight and approval
The moment these align, currency reinstatement can occur quickly. Until then, patience and careful observation are essential.
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MNT GOAT
What if Trump carries out his threat (which he will) and cuts off or reduces dollar aid to Iraq?
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There is not much more to talk about in today’s Newsletter. Iraq still waits for a breakthrough in the election cycle. Meanwhile the Central Bank is still moving ahead with its banking reforms. I am not going to get into these reforms again today as we know that the Central Bank is ready to move ahead with the currency reform project and make tangible evidence to us. They are ready right now! Yes, the Project to Delete the Zeros still sits in the wings waiting the election to show positive results. Certainly, if Iraq insists on Nori al-Maliki as their savior (lol… lol…) this process may take some more time. If he backs down and al-Sudani is nominated we could see the rest of the process fly ahead very quickly.
I encourage everyone not to even listen to these idiot intel gurus anymore telling you this RV could even happen this week or over the weekend. Simply put it is ‘impossible’.
They have been fooling you now for 20 years and so why haven’t you all have had enough of their lies? Yes, I am speaking mostly to all you TNT Tony, MarkZ, and Big idiot Bruce calls. How foolish and irresponsible of them to say these things to you. Oh… they tell you this RV is a “military” like operation. Really? This is total bizarre nonsense statement to even make. This Iraqi dinar reinstatement is not a revaluation as I have said this many times. The rate only changes to something we all want when it is reinstated. We call it the RV for short because the rate will jump from artificially suppressed rate (1320) to the nominal rate ($4+) since it will have to change accordingly with the new peg. This is a very straight redenomination process, unlike other redenominations done in many other countries such as Iran or Zimbabwe, as Iraq won’t be facing hyperinflation and resetting their currency to combat this inflation. But rather resetting to get back to pre-sanction era days (1991). It will be a resetting so they can reinstate the currency at a much higher rate. You only need to study a bit of the past from 1991 then October 2004 when they issued these larger three zero notes to understand what they are doing.
The problem arises with Iran and it has been all about Iran all along and their corruption schemes to control the Iraq economy for their own benefit. This has stalled this currency reform process to the end stages that we now await. Yes, others too have piggybacked off the corruption to a point where it is a way of life and today normal behavior in Iraq. So, the change is coming in Iraq and like in the US, with combating all the corruption and the status quo, is not liking it. Now we are witnessing it again as Iraq entered this critical stage of successful reforms and on the edge of the next stage, which included the reinstatement. Yes it was targeted for last month.
The process to get to currency reform part is clear, resolve the five issues that the US require and they will support the reinstatement (9/16 Newsletter.) The rest is up to the Central Bank. Sorry I wish I had better news for you today. The election process appears to be on hold. We await some news any day now. This is now in God’s hands and so we must pray. This situation could change on a dime and most probably we will wake up some morning and it will be over, for the good of Iraq.
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We pray-
A nice prayer from one of my blog followers. Thank You!