Saturday, December 27, 2025

Militia Man & Jeff: Why the Iraqi Dinar Rate Change May Come Before Full Government Formation

Militia Man & Jeff: Why the Iraqi Dinar Rate Change May Come Before Full Government Formation

Iraq Dinar Update: Does Iraq Really Need a Fully Formed Government?

In a recent discussion, Militia Man and Jeff addressed one of the most debated questions among Iraqi dinar observers:

Does Iraq need a fully completed government before the exchange rate can change?

Their answer challenges long-held assumptions and places the focus squarely on timing, Central Bank authority, and international coordination.


Militia Man: Government Stability vs. Necessity

Militia Man opens with a practical observation:

“Would it look cleaner if they have a prime minister…completely done and stabilized prior to the end of the year? Of course. Is it necessary? I’ve shown that it’s not.”

This statement reframes the conversation. While political completeness is ideal, it may not be a requirement for monetary action.


Jeff: Follow Mark Savaya, Not the Headlines

Jeff emphasizes that the single most important indicator right now is not parliamentary noise—but Mark Savaya’s travel schedule.

“The #1 thing you’re looking for right now is to see when Mark Savaya will be going to Iraq. That’s pretty much going to tell you when the rate’s going to change.”

According to Jeff:

  • The date is being intentionally concealed

  • It is directly tied to the exchange rate change

  • Too many sensitive actions depend on that timing


Why the Exchange Rate Timing Is So Sensitive

Jeff explains that Iraq has:

  • 150+ laws pending

  • Including:

    • The 2026 Budget

    • The long-delayed Oil and Gas Law (pending since 2005)

Why are these laws stalled?

“Because it is sensitive to the timing of the rate change. It needs it and requires it.”

The logic is simple:

  • These laws depend on a new rate

  • Parliament cannot finalize them until after the rate changes

  • Doing so beforehand would create legal and financial inconsistencies


Caretaker Government vs. Central Bank Authority

Key Question:

Does Iraq need a fully formed government to change the exchange rate?

Jeff’s answer is direct—and critical:

“That’s questionable.”

Here’s why:

  • A forming government is considered a caretaker government

  • Caretakers have:

    • Limited access to state funds

    • Restricted fiscal authority

However…

The Central Bank of Iraq (CBI) Is Different

  • The CBI is autonomous

  • It operates separately from the physical government

  • It can change the value of the currency whenever it chooses

“The Central Bank can change the value of the currency whenever they want.”

This autonomy means:

  • A completed government may not be legally required

  • Monetary reform can precede political finalization


What This Means for the Iraqi Dinar

  1. Rate Change Can Come First
    Political perfection is not a prerequisite for monetary action.

  2. Mark Savaya’s Arrival Is Key
    His presence likely signals international approval and timing alignment.

  3. Major Laws Depend on the New Rate
    Budget and Oil & Gas Law need updated valuation metrics.

  4. CBI Holds the Real Power
    The exchange rate decision sits with the Central Bank—not Parliament.


Q&A: Militia Man & Jeff on the Iraq Dinar

Q: Does Iraq need a prime minister fully seated before changing the rate?
A: Not necessarily. Militia Man states it would look cleaner, but it is not required.

Q: Why can’t Parliament pass all the laws now?
A: Because many laws depend on the new exchange rate to function correctly.

Q: Who actually controls the exchange rate?
A: The Central Bank of Iraq, which is autonomous from the government.

Q: What should investors watch most closely?
A: The timing of Mark Savaya’s trip to Iraq.


 Featured Snippet Highlights

  • “The Central Bank of Iraq can change the dinar’s value independently of government formation.”

  • “Militia Man and Jeff emphasize that many Iraqi laws cannot be passed until after the exchange rate changes.”


Strategic Takeaway

The narrative that Iraq must have a perfectly formed government before any rate change is increasingly being challenged.

According to Militia Man and Jeff:

  • The CBI is ready when timing aligns

  • International coordination matters more than headlines

  • Political completion may follow—not precede—monetary reform

The key remains timing, and that timing appears closely guarded.


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 Militia Man  Would it look cleaner if they have a prime minister...back in completely done and stabilized prior to the end of the year?  Of course.  Is it necessary?  I've shown that it's not.  

Jeff  The #1 things you're looking or right now is to see when Mark Savaya will be going to Iraq.   That's pretty much going to tell you when the rate's going to change.  They are hiding that date from us.

They have a lot of crap to do...that's sensitive to the timing of the rate change.  They have 150 plus laws to pass, two of which would be the '26 budget along with the Oil and Gas Law...outstanding since at least 2005. 

 Why?  Because it is sensitive to the timing of the rate change.  It needs it and requires it.  Very simple...Parliament can't get all this crap done [until after] the rate change.

 Question:  "Do they have to have a fully formed completed government to change the rate?"  
That's questionable.  While the government is in a forming state, they're considered a 'caretaker'.  They have very limited access to Iraq funds and monies...The Central Bank can change the value of the currency whenever they want Why Because the central bank is autonomous separate from the physical government...Do they have to have a formed completed government before the rate can change?  We have no way of verifying that.

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