🌟 “Iraq Signals Major Currency Shift: New Exchange Rate Mechanism Set for December 1, 2025” 🌟
✨ HIGHLIGHTS SUMMARY
🇮🇶 Economic momentum continues: Iraq is entering a phase of dynamic growth and implementing medium-term financial plans to sustain vital projects, according to economic advisor Mazhar Muhammad Saleh.
🗓️ December 1, 2025: Iraq is reportedly set to implement a new currency mechanism, marking a historic shift in how the Iraqi dinar’s exchange rate is determined.
💱 Exchange rate arrangement explained:
The IMF describes Iraq’s system as a conventional peg arrangement with the Central Bank of Iraq (CBI) controlling policy.
The “new mechanism” suggests a move away from the sole USD peg toward a basket of currencies, potentially creating a new dinar rate reflecting real assets and multiple currencies.
🪙 Implications for the dinar:
The basket peg could support historical rates of $3.22–$4.25, not the current 1320 IQD/USD rate.
This aligns with CBI plans to remove three zeros from the currency, gradually modernizing and strengthening Iraq’s financial system.
📊 Planned currency reform:
Dr. Subhi Jabara reports that the zero-removal project is under active development, with simulations and careful planning to ensure stability while unlocking the dinar’s potential.
🌟 Positive outlook:
All signs point to Iraq moving forward with removing zeros and transitioning to a new currency peg, potentially followed by full reinstatement to FOREX.
🙏 Broader hope:
These reforms could signal economic prosperity for Iraq and investors, while prayers are encouraged for Iraq’s people and future growth.
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What else is in the news….
Meanwhile Iraq keeps moving ahead and we see yet more progress if we study the articles titled:
“IRAQ IS ENTERING A PHASE OF DYNAMIC ECONOMIC GROWTH AND INVESTMENT OPPORTUNITIES”
“GOVERNMENT ADVISOR: MEDIUM-TERM FINANCIAL PLAN TO ENSURE THE SUSTAINABILITY OF VITAL PROJECTS”
Mazhar Muhammad Saleh, the economic advisor to the Prime Minister, confirmed that the government is capable of managing the 2026 fiscal year even if the federal general budget law is not approved.
Did Iraq Just Give Us A Date?
I want to reference the article titled “IRAQ IS SET TO IMPLEMENT A NEW CURRENCY
MECHANISM ON DECEMBER 1, 2025” in today’s article section.
To fully analyze this article let’s first learn better what an ‘exchange rate arrangement’ is, as it will better help understand this article and as it applies to the Iraqi dinar. So, I will refer to a recent July 2025 article posted on the IMF website explaining it. Why did they post this in July of this year when this arrangement has been ongoing since 2003? An exchange rate “mechanism” is not a new exchange rate but a mechanism to determining the exchange rate of a currency. Get it? Are you listening Frank26? It can certainly lead to a new rate for the Iraqi dinar.
So here the IMF EXPLAINS IRAQ’S EXCHANGE RATE ARRANGEMENT in a16th July 2025 in Iraq Banking & Finance News, Politics article by John Lee.
“The International Monetary Fund (IMF) has issued a brief explainer on Iraq’s exchange rate arrangement. As part of a follow-up to last week’s report on the state of the Iraqi economy, the IMF clarified as follows:
Exchange Rate Arrangement
“Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy.”
I have been telling everyone about this de jure and de facto exchange rate arrangement although I may have not called it that. We know today it is a sole peg to the U.S.Dollar. So, here is the clincher of today’s news. If Iraq is set to implement a new currency mechanism than it must vary from the de facto peg to the U.S. or it wouldn’t be a “new” mechanism, would it? This old mechanism has been in place for over 20 years. Yes, they are telling us they are finally moving all the way off the sanctions mode and going to the basket of currencies for a new peg, a new exchange rate arrangement. Have I not been telling everyone about this for over a decade? Now we are going to see it, but when?
Now remember this and this is really important. If they move to a basket of currencies for the new peg don’t you think the rate of the dinar will reflect a new rate based on the true assets but also on the other currencies of the basket. Each currency in the basket supports the others. This is how they will get the $3.22 -$4.25 historical rate they keep talking about. They are NOT going to FOREX with a 1320 rate. Get it! They are not lopping the dinar. Get it!
Oh….this is the juicy part of today’s news. They are telling us the exchange rate mechanism is due to change on December 1, 2025. Really? Yes, their words not mine. Remember this. I am not making up this news. Can this be true? This news fully supports what my CBI contact has been telling us and all these other recent articles on removing the zeros and moving to a new peg. Remember that for the past 20 years the CBI seldom talked about the new basket of currencies for the dinar. Just recently they have taken this turn and are talking more and more about it. Could this also be part of the educational process for the citizens?
So, I tried to get more information from my CBI contact to confirm this new article and all she would say is “it speaks for itself”.
Please go also take another peek again at the article written by Dr. Subhi Jabara again. It is titled “THE IRAQI DINAR WITHOUT ZEROS: THE CENTRAL BANK OF IRAQ LAUNCHES A HISTORIC REFORM.” It is found in the November 18thNewsletter again. Remember what it said and I quote–
“This ambitious project aims to rename the Iraqi dinar by removing three zeros from its nominal value to better reflect the country’s growing economic strength. This move, which has been the subject of rumors for years, is currently under active development, with comprehensive studies and simulations having been completed. According to the Governor, the process will be gradual and meticulously planned to ensure financial stability while unlocking the currency’s true potential. “
So we must conclude by connecting all the pieces of the news. This recent news is telling me they intend to begin the project to delete the zeros on December 1st. They will have a month complete this stage of the process.

So, again I have to ask you as a reader of this analysis- What do you think is happening? Are they going to move ahead this time with removing the zeros or not? Will the reinstatement follow? Will you be rich?
We must continue our prayers for the Iraqi people and the future of Iraq. Let God’s abundance and prosperity rein down upon that nation.
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