Thursday, February 12, 2026

MNT GOAT: Financial Crisis or Reform Strategy? Who Controls the Dollar Rate in Iraq?

🚨 MNT GOAT UPDATE: Financial Crisis or Strategic Reform?

An article titled:

“Acknowledging the Financial Crisis, MP Says Changing the Dollar Exchange Rate Is Within the Purview of the Next Government”

has sparked discussion across economic circles.

But let’s clarify something immediately:

This article is NOT about a full RV (Revaluation) in the way investors hope.

It is about combating the parallel dollar market so the dinar can gradually strengthen against the dollar.

Big difference.


πŸ“‰ Is Iraq Really in a Financial Crisis?

Former MP Baqir al-Saadi acknowledged the existence of what he described as a “financial crisis,” suggesting that adjusting the dollar exchange rate in the parallel market will be within the authority of the next government.

However, we must ask:

Is this truly a crisis?

Or is it a transition phase during reform?

The Central Bank of Iraq (CBI) has repeatedly stated:

  • Their monetary strategy is working.

  • The parallel market is being reduced.

  • Liquidity is being stabilized.

  • Structural banking reforms are ongoing.

That does not sound like panic.

It sounds like long-term restructuring.


πŸ›️ Who Controls the Exchange Rate?

Al-Saadi stated:

“Moving the exchange rate upwards can only be taken by the next government.”

Technically speaking:

  • Fiscal policy belongs to government.

  • Monetary policy belongs to the Central Bank.

The CBI is already:

✔ Tightening dollar distribution
✔ Enforcing ASYCUDA customs compliance
✔ Reducing parallel market distortions
✔ Strengthening digital banking systems
✔ Forcing more transactions into dinars

The battle against the parallel market is already underway.

So what exactly would the next government do differently?

That remains unclear.


πŸ”„ The Parallel Market – The Real Target

This discussion is about “killing” the parallel dollar market — not triggering an overnight RV.

The gap between:

  • The official exchange rate

  • The black market rate

is what creates distortions, speculation, and financial inefficiencies.

If the CBI eliminates or significantly reduces that gap:

  • Confidence in the dinar increases.

  • Market stability improves.

  • Monetary sovereignty strengthens.

  • Conditions for future exchange flexibility improve.

First things first.

Stability precedes appreciation.


🧠 Political Promises vs. Central Bank Actions

Al-Saadi suggested that once a new government is formed, an economic committee would:

  • Study financial conditions

  • Develop objective solutions

  • Correct economic course

But here’s the reality:

The CBI is already implementing corrective measures.

Recent examples include:

  • Converting oil contractor payments from dollars to dinars

  • Digitizing salary payments

  • Enforcing customs compliance under WTO/WCO standards

  • Reducing cash-based parallel trade channels

Monetary reform is not waiting for political speeches.

It is already in motion.


πŸ“Š Lessons from the Past

History matters.

Previous governments had opportunities to implement strong financial reforms.

Some initiatives stalled.
Some were delayed.
Some were politicized.

The key takeaway for investors:

Promises do not move exchange rates.
Policy execution does.

The Central Bank appears to be taking the lead in monetary stabilization.


πŸ”₯ Featured Snippet Summary

Is Iraq changing the exchange rate now?
No official change has been announced. Current efforts focus on reducing the parallel market gap.

Who controls the exchange rate?
The Central Bank manages monetary policy, while the government influences fiscal decisions.

Is Iraq in a financial crisis?
There are financial pressures, but ongoing reforms suggest structured monetary stabilization rather than systemic collapse.

Could this lead to an RV?
Eliminating the parallel market is a prerequisite step before any major exchange rate reform.


❓ Q&A Section

Q: Can the next government “raise” the dinar?

Not directly. The CBI controls monetary policy, though government stability influences economic confidence.

Q: What is the main goal right now?

Reducing the parallel market and strengthening monetary control.

Q: Why is salary pressure being discussed?

Fiscal strain and revenue restructuring are occurring during reform implementation.

Q: Is this an immediate RV situation?

No. This is structural groundwork.


πŸ™ A Moment of Reflection

A reader shared this reflection:

“Be still and wait…”

Regardless of personal beliefs, patience is essential in long-term economic reform.

Major structural change:

  • Takes time

  • Creates friction

  • Faces resistance

  • Requires endurance

Markets respond to stability — not emotion.


πŸ“ˆ What Investors Should Focus On

Instead of speculation, monitor:

✔ Parallel market spread
✔ CBI liquidity management
✔ Government formation stability
✔ Customs enforcement progress
✔ Oil revenue diversification

When these pillars align, currency strength follows.


🚦 Final Thoughts

Calling this a “financial crisis” may oversimplify what is happening.

What we are witnessing appears to be:

A tightening cycle.
A stabilization strategy.
A gradual dismantling of distortions.

The RV conversation comes later.

First, the foundation must hold.


πŸ“’ Stay Updated

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https://dinarevaluation.blogspot.com/

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https://t.me/DINAREVALUATION

πŸ“˜ Facebook:
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🐦 Twitter/X:
https://x.com/DinaresGurus

πŸŽ₯ YouTube:
https://www.youtube.com/@DINARREVALUATION


πŸ“ˆ Hashtags

#MNTGoat #IraqiDinar #CBI #ParallelMarket #IQD #CurrencyReform #IraqEconomy #RVUpdate #ExchangeRate #MonetaryPolicy #FinancialNews #MiddleEast #ForexInvesting

MNT GOAT

In the article titled “ACKNOWLEDGING THE FINANCIAL CRISIS, MP SAYS CHANGING THE DOLLAR EXCHANGE RATE IS WITHIN THE PURVIEW OF THE NEXT GOVERNMENT”.

Just so you know this article is NOT about an RV like we would like to see. It is about combating the parallel market so the dinar can rise against the dollar. It might lead to the RV but first things first…… πŸ˜Š

Former MP Baqir al-Saadi acknowledged on Monday (February 9, 2026) the existence of a financial crisis in Iraq, while indicating that changing (killing) the exchange rate of the dollar in the parallel market will be within the powers of the next government. Oh…. but isn’t the CBI already doing this? I would certainly not call it a “financial crisis” as the CBI has told us many times their strategy is working, just let it take time. 

He added that “the past few weeks have seen many opinions put forward to address the salary crisis, including moving the exchange rate upwards, but such a step can only be taken by the next government,” noting that “the new government will form a high economic committee to study the financial and economic situation in the country and develop objective solutions.”

Al-Saadi explained that “Nouri al-Maliki, as the candidate of the Coordination Framework, placed this file among his priorities, and therefore, as soon as the government is formed, there will be important decisions to correct the course of the economic and financial dimensions.”

I will add to this article a note about who stopped the reinstatement of the Iraqi dinar back in 2012-2013. It was Nori al-Maliki the prime minister at the time. He has no financial or economic expertise and as much as he says his policies will help Iraq, if elected, nothing will happen, I assure you. He already has eight years to prove it. I also want to note that the CBI has taken the lead on controlling the parallel market as we can see from today’s news from the recent measures it has taken. There is nothing al-Maliki can do or will do that that CBI is already doing. Why didn’t he help control it in his first eight years? Oh…. but he was too worried about sectarianism and going after the Kurds. The last thing that Iraq needs to see is some bozo like al-Maliki who knows very little, if anything, about running a country, come into power again. Yes, they say he is a great statesman but what good is he if he accomplishes nothing while in office? Yes, nothing but a good bullshitter. 

_______________________________

We pray-  

A nice prayer from one of my blog followers. Thank You! 

“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!! 

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Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,

                                             Just the FACTS!

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