๐ค Oil Agreement Progress: The deal between Baghdad and Erbil is a positive step to build trust and advance the long-delayed Oil and Gas Law—fingers crossed it passes soon! ๐️⚖️
๐ Market Stabilization: The decline in the parallel dinar market is no accident—it’s a managed effort by the Central Bank of Iraq (CBI) to stabilize the currency. ๐ฏ๐
๐ต Dollar Control Achieved: CBI has gained control over the dollar parallel market to align it with the official dinar rate, which is essential because the dinar is pegged to the dollar. ๐๐ฒ
⏳ Long Road to Stability: After 20 years of work, the CBI is very close to completing this phase, paving the way for the next stage in Iraq’s financial reform. ๐ง✅
Iraq's state-owned Rafidain Bank has announced that it has "completed" 87 percent of its foreign debt obligations through high-level legal and financial negotiations, significantly reducing the country's external liabilities.
As part of Iraq's adherence to the
Paris Club Agreement and with direct Cabinet approval, the bank concluded major settlements with Dutch and French creditor companies. The most notable was under Cabinet Resolution No. 403 of 2025, which settled three Dutch lawsuits with a waiver exceeding 90 percent of the claimed amounts in favour of the bank.
Additionally, the bank achieved key legal victories in Turkey and Lebanon, recovering over $2.8 million in assets. According to a statement from Rafidain, this highlights the competence of Iraq's legal apparatus in defending state interests abroad.
Rafidain Bank confirmed it is pursuing final settlements to close the remaining debt portfolio, aiming to bolster Iraq's sovereign credit rating and reinforce global confidence in its fiscal governance.
๐ฐ Over 20 years ago, the Iraqi dinar rate was $3.22, based mainly on oil prices.
๐ Now, Iraq has diversified income sources including $16 trillion in rare minerals, tourism, and agriculture, making the economy very promising.
๐ Given neighboring Middle Eastern countries’ rates, an exchange rate around $3.80 to just over $4.00 seems realistic.
๐ฆ Iraqi banks are currently training employees on combating counterfeiting and smuggling to secure monetary reform.
❌ Training does not involve the “3-zero notes” (lower denomination dinar notes), indicating those notes will likely be removed or replaced.
⏳ The lower denomination notes and new exchange rate will likely be introduced simultaneously as part of the reform process.
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Frank26
Right now they're training the banks of Iraq, their employees, on how to deal with counterfeiting and smuggling...for the security and stability of their monetary reform.
But they're to using the 3-zero notes to train them with?
...This pattern is one that you have to respect...There's no crime against that currency because that currency won't exist. So what are you using, the lower notes?
No, they don't want to show the lower notes just yet. They're going to do the lower notes and exchange rate at pretty much the same time..
[Iraq boots-on-the-ground report]
FIREFLY:The rate over 20 years ago was $3.22 and that was just off the price of oil. Now we have non-oil revenues and $16 trillion alone in rare minerals... tourism... agriculture... This is very promising.
FRANK: $3.22 was over 20 years ago...When you look at the exchange rate of the other Middle Eastern countries around you, it's not too far-fetched that you could be somewhere around $3.80 to just a pinch over $4.00.
A loss of this scale would be
immediately detected.
๐ซ Disinformation Alert:
Rumors are seen as attempts to undermine public trust.
Citizens urged to avoid spreading false news, especially during sensitive financial reforms.
๐ Bottom Line: No IQD catastrophe—just viral fake news. Iraq's currency is safe and accounted for.
๐ Source: [Iraqi News Agency (INA)]
----
Govt Denies Destruction of 62 Trillion Iraqi Dinar
The Financial Adviser to the Iraqi Prime Minister, Dr. Mudhhir Mohammed Saleh, has firmly denied social media rumours claiming the destruction of half of Iraq's currency supply - approximately 62 trillion dinars [$47 billion] - as "economically absurd and completely unfounded".
In remarks to the state-run Iraqi News Agency (INA), Saleh clarified that Iraq's total issued monetary mass does not exceed 100 trillion dinars, including both circulating and reserve cash. The notion that more than half of this amount could be destroyed by environmental or biological factors - as claimed in rumours citing "rats and mice" - is "impossible and institutionally unthinkable".
He explained that about 88 percent of Iraq's money supply is held outside the banking system, largely by individuals due to longstanding cultural habits, not stored in a single location that could suffer such widespread damage.
Saleh stressed that Iraq's currency management is governed by strict procedures covering printing, storage, inspection, and replacement. "Such a massive loss could not occur without detection," he said, denouncing the rumours as a deliberate attempt to stir public anxiety.
He urged citizens to avoid spreading fabricated news that undermines public trust, especially during a period requiring national cohesion and confidence in the country's financial institutions.
๐ Strong emphasis on faith and trust as a foundation amid financial uncertainty.
๐ฌ Insider banking sources reveal imminent monetary reform steps, including detailed preparations within Iraq’s banking system.
๐ฆ Planned temporary shutdown of banks and businesses is a key step toward implementing a new exchange rate and modernizing the financial system.
๐ Lower denomination dinar notes (“three zero notes”) are being phased out, signaling currency redenomination or revaluation.
๐ Iraq’s economy is diversifying beyond oil, with growing revenues from rare minerals, agriculture, and tourism—strengthening its financial outlook.
๐ Officials deny rumors about massive currency losses (e.g., trillions lost to rodents), highlighting challenges with misinformation during reform.
๐น Iraq’s currency reform reflects global efforts to manage exchange rates and currency stability, influenced by broader geopolitical and economic policies.
๐ Banking staff are undergoing fraud and anti-money laundering training as part of reform protocols.
๐ป The reform includes a shift toward digital and electronic currency systems for enhanced transparency and control.
Key Takeaway: The monetary reform in Iraq is a carefully orchestrated process involving strategic infrastructure changes, currency cleanup, and economic diversification, set within a global context of financial realignment. Reliable insider information and spiritual grounding play vital roles in navigating the transition amid widespread rumors and uncertainty.
๐ฐ Highlights: Iraqi Citizens Avoid Banking System
⚠️ Deep Distrust: Over 90% of Iraq’s money supply is hoarded outside banks—citizens fear long delays and rejection when withdrawing from government or private banks.
๐ Personal Stories: Wajdan Saleh avoided depositing 5 million dinars due to impossible withdrawal rules. Now she keeps remittances at home.
๐ Systemic Impact: This distrust cripples monetary circulation, depletes liquidity, and weakens banks' ability to finance development and issue loans.
๐️ Institutional Causes: Weak digital systems, poor banking culture, limited branches, and past corruption feed cash-hoarding habits.
๐ค Economic Fallout: Inflation control weakens, monetary policy tools lose traction, and investors turn to informal financing.
๐ Expert View: Economist Dr. Ali Daadoush: "92% of money is outside the banking system—this is a structural fragility rooted in decades of instability."
✅ Call to Action: MPs urge reforms: simplify banking procedures, expand banking culture, adopt e‑commerce, and restore trust through transparency and accessibility.
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Iraqis do not trust banks. More than 90% of the money supply is outside the banking system.
The relationship between Iraqi citizens and banks, both governmental and private, remains isolated or nearly severed, especially when it comes to depositing money with these banks. Citizens view these banks as deep wells that hide their money beneath the routine of lengthy transactions, while they see the rooms and closets of their homes as the safest places for their cash.
Citizen Wajdan Saleh is one of those people. She is afraid to deposit her money in Iraqi banks and prefers to keep it at home, citing her fear that the banks will not easily return her money if she needs it.
"I once deposited 5 million dinars in a government bank, and when I went to withdraw it after a long period of time, they asked me to follow impossible procedures that took more than a week," Wajdan told Shafaq News Agency.
Wajdan added that since then she has not deposited any money, even the remittances she receives from relatives outside Iraq, which she receives immediately upon arrival.
"The lack of trust between citizens and banks has led to citizens hoarding their money at home and not depositing it in banks, which has significantly impacted the monetary aggregate," MP Mustafa Al-Karawi asserted. He added, "The issue of developing the banking sector and merging banks has been raised repeatedly in parliament, and the primary reason behind this is the loss of confidence citizens have had in the banking system in Iraq."
Speaking to Shafaq News, Al-Karawi explained that this problem stems from long-standing issues related to weak electronic and banking accounting systems, which has made citizens reluctant to use them and prefer to withdraw their full salaries as soon as they are deposited into the card, leaving no balance.
He points out that the absence of modern banking systems has led people to refrain from depositing and saving in banks, which prompts many to hoard their money at home, which in turn leads to economic stagnation and reduces the amount of liquidity circulating in the market.
Al-Karawi calls for raising citizens' awareness and banking culture, as well as for government and commercial institutions and the private sector to adopt e-commerce transactions, as a key path to stimulating economic activity.
He concluded by saying that deposits in banks not only provide financial security for citizens, but also enable banks to provide development services such as loans and advances, which contribute to stimulating the market and achieving the desired economic growth.
Economist Dr. Ali Daadoush told Shafaq News Agency, "The phenomenon of hoarding money amounts to 92% of the monetary mass outside the banking system. It represents a fundamental challenge to the monetary and financial structure in Iraq and is one of the most prominent manifestations of the structural fragility of the monetary economy." He emphasized that "this phenomenon is complex and has behavioral, institutional, and economic dimensions."
He adds, "The culture of hoarding is not a new phenomenon. It is an extension of decades of political and economic instability, from blockades to sanctions, from a lack of security to fragile institutions. During these periods, the idea that paper money in your pocket is better than money in the bank became ingrained in the Iraqi mindset. However, this culture did not remain within the framework of individual behavior alone, but rather transformed into a general phenomenon, stifling the economic cycle and weakening the ability of banks to perform their vital functions, from financing to investment, from oversight to the activation of monetary instruments."
Daadoush points out that "the majority of those who hoard cash are individuals, particularly in small towns, rural areas, and areas not covered by banking services. This is due to a lack of trust in banks, a result of past experiences of bankruptcy, seizure, or corruption, and the absence of a culture of financial inclusion in the educational and media systems."
Daadoush points to "the difficulty of banking procedures, the lack of widespread branch presence, and the decline in digital banking services, which push people to cling to cash as an easier means of payment."
According to experts, this phenomenon has many negative aspects, including the central bank losing effective control over the money supply, and its tools, such as interest rates and rediscounting, becoming less effective. Meanwhile, banks suffer from a liquidity crunch, which weakens their ability to finance projects and pushes investors toward informal financing. Furthermore, managing inflation due to the unofficial money supply negatively impacts the central bank's decisions in achieving its primary objective of controlling the general price level and achieving stability.
Citizen Abdul Ali Alwan told Shafaq News Agency, "The procedures for opening a bank account require official identification documents and an amount not exceeding $100. This is normal, but the problem becomes more complicated if we are asked to withdraw part of the deposited amount."
He added, "Routine procedures hinder the withdrawal process and take more than a week."
Due to the instability and the closure of some private banks due to external sanctions, some people refuse to deposit money in these banks.
Contractor Abdul Zahra Fadel explains, "There are often times when there is a quick and urgent need for money, but banking procedures stand in the way. Some private banks are subject to sanctions that require them to shut down for a period of time, and then we face numerous problems."
He pointed out in an interview with Shafaq News Agency: "When a citizen opens a bank account in hard currency, the money transferred to him through the bank is not disbursed in the same currency," noting that "the money transfer is also not delivered at the parallel rate under the pretext that the account opened with the bank is in hard currency, and another account must be opened in local currency in order to withdraw the transfer."
He asserts that "banks in Baghdad adopt complex and often unreasonable procedures that place customers in prolonged suffering. This is completely different from the banks in the region, which enjoy ease and transparency in all their banking transactions."
Ultimately, the Iraqi government must improve the administrative performance of banks and increase citizen confidence in the banking system by facilitating the procedures for withdrawing and depositing funds. link
☕️ Weekend Coffee with MarkZ Highlights (Aug 2, 2025)
๐ฐ️ MarkZ reminds: This is his opinion; watch the full video for full context and consult professionals for financial decisions.
๐ฌ Bond/Reset Rumors: Elders are seeking key historic bond artifacts. Deals are trying to get done fast but some non-negotiable points remain. Some optimism, but no rush this weekend.
๐ฆ No Activity at Banks/Redemption Centers This Weekend
: Banking sources say no one is working this weekend—likely no movement until after.
๐ฎ๐ถ Iraq Updates:
Baiji city is being rebuilt as an oil and industrial hub, boosting Iraq’s economy beyond oil.
Chinese cranes modernizing Iraqi ports for better goods movement.
Sudani denies rumors about destruction of 62 trillion dinars, though MarkZ speculates it might be damage control ahead of a revaluation—signaling RV could be imminent.
๐ RV Speculation: Some believe Iraq might RV first, followed by other countries on their own timeline.
๐ฐ Currency Rate Hopes & Rumors:
No real rates known until redemption appointments.
Rumors: Bolivar possibly at $0.30; hopes VND (Vietnamese Dong) will be over $2.
The community is eager and praying for the RV to happen soon.
๐บ๐ธ Trump & Tariffs:
Tariff money could cut 20% of the US federal budget deficit.
๐ Closing: Community encouraged to stay hopeful; thanks to MarkZ and team for insights. New schedule: no more Monday and Friday nightly podcasts.
๐ Middle East Presence Grows: Confirms the rising influence of Chinese firms in Iraq and the region's energy sector.
๐ท♂️ Job Creation: The construction and operation phases are expected to generate thousands of jobs for locals and contractors.
๐ค Deepening Ties: Reflects strengthening Iraq–China economic relations, especially in energy and infrastructure development.
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China Petroleum Engineering wins bid for massive offshore pipeline project in Iraq
China Petroleum Engineering Corporation (CPEC), a subsidiary of the China National Petroleum Corporation (CNPC), announced it has won a bid for a major offshore pipeline project in Iraq. The project is expected to be worth approximately $2.5 billion.
This project represents an important step towards strengthening Iraq's oil export infrastructure, particularly its offshore component, which will contribute to increasing the country's capacity to pump and export crude oil.
According to economic websites, a Chinese company's winning of this massive bid confirms the growing role of Chinese companies in the global oil and energy sector, particularly in the Middle East and Iraq.
This major investment reflects China's commitment to securing and diversifying its energy sources, as Iraq is one of the world's largest oil producers and a major supplier to China.
The project is expected to contribute to the creation of significant job opportunities, both directly and indirectly, during the construction and operation phases.
This pipeline could also contribute to increasing Iraq's oil export revenues, which is vital for the country's economy, which is heavily dependent on oil revenues.
This project is another example of the growing economic cooperation between Iraq and China, which includes many sectors, particularly energy and infrastructure. link
๐ New Forex Rates Delay: Although the new foreign currency rates may be posted, Forex rules prevent them from being visible to the public/front end until Friday, Aug. 1 at 2 PM EDT.
๐ง Email & 800 Numbers Incoming: Bankers are being told that email notifications and 800 numbers will begin rolling out on
๐ข️ International Oil Giants Resume Operations in Kurdistan! ๐ฎ๐ถ๐
✅ Return to Work: Several international oil companies are back in action at Kurdistan oil fields after a period of instability.
๐ Security Concerns: Over 22 drone attacks hit vital oil facilities—investigation is still ongoing, with no final report yet to the PM.
๐ธ Compensation Responsibility: Kurdistan Regional Government (KRG) will compensate oil companies for amounts allocated to local use.
๐ณ️ Export Coordination: KRG is preparing to deliver crude to SOMO for export via Turkey’s Ceyhan port, signaling stronger cooperation with Baghdad.
๐ค Federal-Regional Agreement: This step highlights the KRG’s commitment to protect investments
and align with federal oil export policies.
------
International oil companies return to operations in Kurdistan fields
A responsible source in the Kurdistan Regional Government revealed on Saturday that a number of international oil companies have resumed operations in the Kurdistan Region's oil fields.
The source explained that "the vital oil facilities in the Kurdistan Region were subjected to more than 22 drone attacks in various parts of the region," noting that "the investigative committee has not yet submitted its final report to Prime Minister Mohammed Shia al-Sudani."
He added, "The region will bear the responsibility of compensating companies for the quantities allocated for local consumption."
He continued,
"The region is preparing to deliver the ready quantities of crude oil produced by foreign companies that have gradually returned to operating in the region to the State Oil Marketing Organization (SOMO) for export via the Turkish port of Ceyhan, stressing that this step reflects the regional government's commitment to a joint understanding with the federal government to regulate the export file and protect oil investments." link
"Development Road" Opens The Way For A New Energy Agreement Between Iraq And Turkey.
Economy News - Follow-up Researchers and experts confirmed on Friday that the"Development Road
" project between Iraq and Turkey is no longer just a strategic corridor for transporting goods,
but rather a gateway to a comprehensive energy agreement between the two countries that could redraw the map of regional economic cooperation.
Turkish researcher Sercan Caliskan, who specializes in Iraqi affairs, explained, as reported by Anadolu Agency, that "relations between Ankara and Baghdad have witnessed a strategic development in the energy sector," noting that
"this path is directly linked to the 'Development Road' project, which extends 1,200 kilometers within Iraqi territory and aims to connect the Arabian Gulf to Europe via Turkish territory."
"The project is not limited to transportation and infrastructure, but opens new horizons for regional cooperation, especially in the energy sector,"explained รalฤฑลkan, a researcher at the Turkish Center for Middle Eastern Studies.
He continued: "The development path represents an opportunity to establish a long-term partnership that prevents legal disputes and builds the foundations for comprehensive cooperation on the oil and energy front."
For his part, Yasser Al-Maliki, an expert on Arabian Gulf affairs at the Middle East Economic Survey (MEES), said that
"the project falls within Ankara and Baghdad's plans to enhance their economic cooperation," stressing that "the Iraq-Turkey oil pipeline could be used in the future to transport crude oil from other countries, strengthening Turkey's position as a regional hub for energy transit between Asia and Europe."
Al-Maliki pointed out that "re-exporting Kirkuk oil to Mediterranean refineries via Tรผrkiye would be of great importance to Baghdad, as it seeks to increase revenues and reduce supply-related crises."
Turkish sources had previously revealed that negotiations had begun between Ankara and Baghdad to reach a new, more comprehensive oil transport agreement.
A Turkish presidential decree was published in the Official Gazette on July 21, indicating that the current agreement signed between the two countries in 1973 would expire on July 27, 2026. views 96 08/01/2025 - https://economy-news.net/content.php?id=58198
Dinar Holders can get a higher Dinar Rate at a Redemption Center by asking for the Contract Rate. That rate will be nine times higher than it is at a bank. The bank rate appeared to be $9-$10.
The Forex will come up Sunday evening with the new rates on it.
Banks and Redemption Centers have different rates. The Redemption Center rates are higher.
You cannot redeem Zim at a bank. You have to do it at a Redemption Center.
Several sources say that Notifications to set exchange appointments for Tier4b (us, the Internet Group) will come out sometime over the weekend through Monday morning 4 August.
Several sources say exchanges for Tier4b will start Mon. afternoon 4 Aug.
US citizens age 28 and above will get a certified tariff rebate check (DOGE payments). That should start Fri. 1 Aug. 2025 and end Sun. 3 Aug. 2025.
Seniors on Social Security will get it by direct deposit.
At your appointment you can refer six people for med bed treatments – name and phone number.
๐ธ Dinar Supply Tightened: Central Bank withdrew dinars from circulation = increased demand for dinar
๐ Result: More demand for IQD, less pressure on USD → exchange rate shift in favor of the dinar
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Among Them Is The Economic Contraction.. An Expert Reveals The Reasons Behind The Decline In The Exchange Rate.
July 31, 2025 Baghdad/Iraq Observer Economic expert Munar Al-Obaidi confirmed that the exchange rate of the US dollar against the Iraqi dinar has witnessed a significant decline recently.
This decline is due to a group of intertwined economic and procedural factors, which vary in their level of influence but have collectively contributed to strengthening the dinar.
Al-Obaidi told the Iraq Observer that “the reasons for the dollar’s decline include theeconomic contraction and declining consumer confidence.
The state of uncertainty in the Iraqi market, as a result of the economic slowdown, has led to a decline in the confidence of individuals and institutions in spending, which has negatively impacted the volume of public demand, thus reducing the need for the dollar as a stimulus for trade.
In addition, the halt in government investment spending has led to the government focusing on operational spending rather than investment spending, leading to a decline in economic activity.”
He added that "the general budget is the primary driver of economic activity, and reducing investment spending has reduced aggregate demand, including demand for the dollar."
He noted that "other reasons include : tightening controls at border crossings and government measures to curb smuggling and regulate relations with the Kurdistan Region, which have contributed to reducing the phenomenon of inflated invoices, which has reduced the unreal demand for dollars in the parallel market."
Regarding the shift of traders to the formal banking system, Al-Abidi explained that “the markets have witnessed the entry of a large segment of traders into the formal banking system, and their reliance on the official dollar exchange rate through approved platforms, which has reduced the volume of trading in the parallel market and reduced pressure on the dollar, in addition to a decline in re-export operations.
The decline in the re-export of goods to neighboring countries has led to a reduction in demand for imported goods, which has directly reflected in a decline in the need for dollars to finance these commercial operations.”
He emphasized that "settling major companies' dues in oil productsinstead of cash also had an impact on depreciating the dollar, as the government settled a portion of foreign companies' dues in black oil and naphthainstead of cash, reducing reliance on dollars sold by the Central Bank and increasing their supply in the market."
He pointed out that “preparations for the electoral process also play a role.
With the start of the election season, the volume of spending related to the electoral campaigns increased, and this spending is often financed from cash reserves stored in dollars, which necessitated converting large amounts of them into dinars to cover campaign expenses, thus increasing the supply of dollars and increasing the number of foreign visitors and arrivals.
The increasing number of arrivals to Iraq contributed to the introduction of quantities of foreign currencies into the local market, which provided an additional source of hard currency outside the framework of central bank sales, and contributed to strengthening the availability of dollars.” He continued, saying,
"The halt to illicit trade as a result of the closure of the border with Syria played a significant role in the decline of the dollar.
The closure of border crossings with Syria contributed to the reduction of smuggling and illegal trade, which had been heavily dependent on the dollar in the parallel market, leading to a further decline in demand for the dollar."
He concluded by saying, "The decline in the issued currency and the withdrawal of a portion of it from the market is another reason behind the decline in the dollar price.
The Central Bank of Iraq withdrew a portion of the dinar money supply from the market, creating a double demand for the Iraqi dinar against the dollar.