What’s “Under the Radar” in Iraq? Analyzing the 1–3 IQD/USD Revaluation Claim
A circulating post attributed to “Ariel” outlines a dramatic scenario:
Exchange rate reset from ~1,310 IQD/USD to 1–3 IQD per USD
Backed by 145+ tons of gold reserves
Supported by oil priced at $80–90 per barrel
Massive domestic liquidity surge
Banking system stress
Political shake-up targeting Iranian influence
These are extraordinary claims. Let’s examine them through economic logic and central banking mechanics.
The official authority responsible for Iraq’s exchange rate is the Central Bank of Iraq.
💱 Claim: Reset from 1,310 IQD/USD to 1–3 IQD/USD
This would represent a revaluation of approximately:
400× to 1,300× increase in value
For comparison:
Modern currency revaluations rarely exceed single-digit percentage adjustments.
A 400× overnight appreciation would be historically unprecedented in contemporary monetary systems.
Such a shift would:
Instantly multiply the purchasing power of every dinar holder
Collapse Iraq’s export competitiveness
Disrupt trade contracts
Trigger global forex volatility
No central bank has executed a move of this magnitude in modern floating or managed currency regimes.
🪙 Gold Backing: 145+ Tons Argument
Iraq does hold gold reserves. However:
Gold reserves function as:
Balance sheet stabilizers
Confidence anchors
Collateral buffers
They do not directly determine a fixed exchange rate in a modern managed currency system.
To back a 400× rate increase, Iraq would need:
Monetary base contraction
Massive redenomination
Structured capital controls
External trade recalibration
Gold alone cannot sustain that scale of currency appreciation without deep structural redesign.
🛢 Oil Revenue as Exchange Rate Support?
Oil priced at $80–90 per barrel certainly strengthens Iraq’s fiscal position. However:
Oil revenue:
Supports budget spending
Builds foreign reserves
Improves balance of payments
It does not automatically justify parity with the U.S. dollar.
Even major oil exporters like:
Saudi Arabia
Norway
Maintain carefully managed currency structures rather than hyper-revaluation events.
🏦 “Hyper-Liquidity Surge” Scenario
The claim suggests:
Purchasing power multiplies 400–1,300× overnight.
If this occurred:
Imports would become ultra-cheap
Domestic production would collapse
Inflation would likely spike due to demand shock
Government price controls would become necessary
Paradoxically, such a dramatic gain in currency value could destabilize internal markets rather than strengthen them.
💳 Banking System Overload & ATM Dry-Up?
A sudden 400× rate shift would create:
Immediate deposit revaluation issues
Contract renegotiations
Foreign debt repricing
Settlement confusion
Modern central banks avoid this by:
Gradual appreciation
Managed float adjustments
Controlled redenomination
Phased currency restructuring
There is currently no official confirmation that the CBI is launching a blockchain monetary layer tied to such an event.
📈 Inflation Spike Then Stabilization?
In reality, a sharp currency appreciation typically reduces import inflation. However:
If purchasing power multiplies instantly:
Consumer demand spikes
Asset bubbles form
Real estate surges
Speculative behavior accelerates
Stability would require extreme monetary discipline.
🏛 Political “Earthquake” & Proxy Removal
The post suggests political consequences involving:
Mohammed Shia' Al-Sudani
Removal of Iranian-linked proxies
While political reform and financial reform can intersect, exchange rate policy remains under the Central Bank of Iraq, not political factions directly.
Monetary policy decisions are technical and macroeconomic — not symbolic resets.
🔎 Featured Snippets
Could Iraq revalue from 1,310 IQD to 1–3 IQD per USD?
Such a 400× revaluation would be unprecedented in modern monetary history and would require massive structural reform.
Does gold backing guarantee a currency reset?
No. Gold reserves support balance sheet strength but do not automatically determine exchange rate value.
Would citizens become instantly wealthy after a 400× revaluation?
In theory, local purchasing power would rise dramatically, but severe economic distortions would likely follow.
Can a central bank raise a currency 1,000× overnight?
No modern central bank has executed an appreciation of that magnitude in a managed global system.
📊 Economic Reality Check
For Iraq to move from 1,310 to 1–3 IQD/USD, it would need:
Full redenomination (removing zeros)
Controlled monetary base contraction
Coordinated global banking transition
IMF-aligned structural reform
Formal international notification
Such a transformation would not occur covertly or “under the radar.”
❓ Q&A Section
Q: Is there official confirmation of a 1–3 IQD/USD rate?
No official statement from the Central Bank of Iraq confirms this.
Q: Does Iraq have significant gold reserves?
Yes, but gold reserves alone cannot justify a 400× exchange rate shift.
Q: Would inflation explode after such a revaluation?
Likely yes — due to sudden demand shock and asset speculation.
Q: Can oil revenue alone support dollar parity?
No. Exchange rate structures depend on monetary supply, reserves, trade balances, and macro policy — not just oil pricing.
📌 Final Perspective
Extraordinary financial transformations require:
Transparent policy communication
Coordinated international banking alignment
Legal frameworks
Monetary restructuring
A sudden 400× currency reset backed solely by gold and oil would contradict modern central banking practice.
Until official statements are issued by the Central Bank of Iraq, such projections remain speculative.
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ARIEL:
What is Going on Under the Radar (IQD-Update)
So I have something that was sent to me regarding some covert operations involving the C***l and possible contingencies they have in place for an Iran strike. This is from someone who apparently 1st posted this on Discord.
The IQD Revaluation Economic Effects
Immediate Domestic Effects Inside Iraq (First 30–90 Days)
Exchange rate resets from ~1,310 IQD/USD to a targeted range of 1–3 IQD/USD (pre-1991 parity zone), backed by 145+ tons of gold reserves + proven oil at $80–90/barrel.
Hyper-liquidity surge: domestic purchasing power multiplies 400–1,300× overnight for citizens holding physical dinar or CBI accounts. Consumer spending explodes cars, real estate, imported goods flood in.
Banking system overload: ATMs dry up in days, physical cash shortages force emergency printing of new lower-denomination notes while digital platforms (CBI’s new blockchain layer) come online.
Inflation spike then stabilization: prices for food, fuel, housing double–triple in first month before CBI rate controls and gold backing cap runaway effects.
Wealth redistribution: middle-class and returning diaspora become instant millionaires in local terms; old Ba’athist and militia-linked families who hoarded dollars lose relative power.
Political earthquake: PM al-Sudani’s government faces immediate pressure to purge Iranian proxies from ministries as public demands accountability for past theft.
