Iraq stands at a critical crossroads — politically and economically.
According to Mnt Goat, Iraq is still facing a political deadlock following the November 2025 election cycle. At the same time, the Central Bank of Iraq (CBI) has made a bold monetary move that could significantly impact the dinar’s future.
Two powerful developments are unfolding simultaneously:
Constitutional deadlines tied to government formation
The CBI’s decision to shift contractor payments from U.S. dollars to Iraqi dinars
Let’s examine what this could mean.
🏛️ Iraq’s Political Deadlock: Constitutional Deadlines at Stake
Mnt Goat reports that:
Kurdistan has presented its presidential candidate to Parliament for confirmation.
Once confirmed, the president is expected to nominate the prime minister.
The confirmation of the prime minister is reportedly scheduled for this week.
Constitutional deadlines are at risk if delays continue.
Why This Matters
Iraq cannot fully stabilize economically without:
A seated president
A confirmed prime minister
A fully formed government
Political stability is a prerequisite for:
International confidence
Foreign investment
Monetary reform implementation
Currency policy transitions
If Parliament meets deadlines this week, it could remove a major obstacle to broader financial reform.
💱 “From Dollar to Dinar” – A Major CBI Policy Shift
Article:
“From Dollar to Dinar… Exchange Rate Policy Confuses Oil Companies and Threatens Their Employees!”
The Central Bank of Iraq has directed that payments to contractors working with oil companies be converted from U.S. dollars to Iraqi dinars at the official rate.
When Mnt Goat learned of this, she reacted strongly:
“WOW! WOW! and WOW! The CBI finally did it!”
Why such excitement?
Because this represents a structural shift away from dollar dependence.
🛢️ Why Ending Dollar Payments Is So Significant
For years, U.S. dollars have circulated heavily within Iraq’s economy. This created:
A parallel (black) market
Exchange rate distortion
Speculation pressure
Leakage of hard currency
Dollars entering the local market often:
Flowed into the black market
Increased demand outside official channels
Weakened the CBI’s control over the exchange rate
The Core Question
How can the CBI control the official dinar rate if dollars continuously leak into parallel markets?
The answer:
Close the loopholes.
This new directive is designed to do exactly that.
🔐 ASYCUDA + Dollar-to-Dinar Shift = Two Major Reform Moves
Mnt Goat highlights two key reforms working together:
1️⃣ Full Implementation of the ASYCUDA System
ASYCUDA modernizes customs processing and trade transparency.
This helps:
Track imports accurately
Reduce corruption
Prevent illegal currency flows
Align Iraq with global trade standards
2️⃣ Paying Contractors in Dinars
By requiring dinar payments:
Dollar leakage decreases
Black market pressure reduces
Demand for dinars increases
Official rate authority strengthens
Together, these are structural reforms — not cosmetic ones.
⚠️ Economic Concerns from Oil Contractors
However, not everyone is celebrating.
Economic expert Nabil al-Marsoumi stated:
“More than 200 Iraqi companies contracted with oil licensing companies, employing over 50,000 Iraqi workers, are threatened with significant financial losses and layoffs due to the Central Bank’s directive to disburse their payments in dinars at the official rate—even though their contracts and expenses are denominated in dollars.”
This reveals a serious tension:
Contracts are priced in dollars.
Expenses are dollar-based.
Payments are now being made in dinars at the official rate.
If the official rate does not reflect real market value, companies face losses.
🤔 Could This Signal a Dinar Reinstatement?
Mnt Goat raises an important possibility:
If the dinar were to become internationally recognized at a stronger rate, the contractor problem could disappear.
Why?
Because:
A stronger, internationally tradable dinar would offset conversion discrepancies.
Companies would not face exchange losses.
The currency would stabilize across domestic and international markets.
This leads to speculation:
Is the CBI making this move now because it anticipates a broader currency reform?
🔍 Featured Snippet Section (Optimized for Google Discover)
Why Is Iraq Moving From Dollar to Dinar Payments?
The Central Bank of Iraq is requiring contractors to receive payments in dinars instead of U.S. dollars to reduce black market currency activity and strengthen control over the official exchange rate.
What Is the Parallel Market in Iraq?
The parallel market refers to unofficial currency trading channels where dollars circulate outside central bank control, influencing exchange rates and creating instability.
Could This Lead to a Dinar Reinstatement?
Some analysts suggest that reducing dollar dependency and increasing dinar usage could be foundational steps toward currency reform or international reinstatement.
📊 Key Economic Implications
✔ Increased demand for Iraqi dinars
✔ Reduced dollar leakage
✔ Stronger central bank exchange control
✔ Pressure on contractors under current rate
✔ Structural reform alignment
The shift is systemic — not temporary.
❓ Q&A Section
Q1: Why were dollars a problem?
Dollars often entered the black market, weakening the CBI’s control over the official exchange rate.
Q2: What is ASYCUDA?
A global customs automation system designed to modernize trade and increase transparency.
Q3: Are oil companies at risk?
Yes. Companies with dollar-denominated contracts could face losses under current conversion rules.
Q4: Does this confirm a reinstatement?
No official confirmation exists. However, the policy shift aligns with structural reform principles.
Q5: Why now?
The timing coincides with political formation deadlines and broader economic restructuring.
🏛️ Political Stability + Monetary Reform = The Bigger Picture
Iraq’s situation involves two moving parts:
Government formation under constitutional deadlines
Monetary restructuring to eliminate dollar dependency
If the presidency and prime minister are confirmed this week, Iraq could:
Unlock stalled legislation
Accelerate economic reforms
Strengthen investor confidence
Advance currency normalization
📈 Final Analysis
The CBI’s move from dollar to dinar payments may represent:
A decisive strike against the parallel market
An assertion of monetary sovereignty
Preparation for broader currency reform
Whether this leads to reinstatement remains unconfirmed.
But one thing is clear:
Iraq is tightening control of its national currency — and that is a foundational step in any serious monetary transition.
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Mnt Goat
Iraq still faces a deadlock from the Nov 2025 election cycle. It is said that Kurdistan has presented their candidate for president to Parliament for confirmation this week. Also it is said that the confirmation of the prime minister candidate will also be presented this week following the seating of the new president. It is all scheduled for this week. Constitutional deadlines are at stake.
Article: “FROM DOLLAR TO DINAR… EXCHANGE RATE POLICY CONFUSES OIL COMPANIES AND THREATENS THEIR EMPLOYEES!”
In this news we learn that The Central Bank of Iraq’s decision to convert payments to contractors working with oil companies from US dollars to Iraqi dinars....When I learned of this news I said WOW! WOW! and WOW!. The CBI finally did it! ...
The CBI is essentially creating the change over from the dollar to the dinar in payments now even to outside companies. Remember the national currency of Iraq is the dinar not dollars and the dollars have been the problem all along as these dollars get into the parallel market and shift the market to influence the price of the dinar...
How can the CBI ever get control of the official rate of the dinar unless they end these holes to which the dollar was passing through to the black market. So, along with the full implementation of the ASYCUDA system we see two major moves to sew up the parallel market.
Economic expert Nabil al-Marsoumi stated in a tweet that “more than 200 Iraqi companies contracted with oil licensing companies, employing over 50,000 Iraqi workers, are threatened with significant financial losses and layoffs due to the Central Bank’s directive to disburse their payments in dinars at the official rate—even though their contracts and expenses are denominated in dollars.”
Can this also mean that a reinstatement of the dinar is coming soon? Could this be the motive too for the CBI making this move now…if the dinar does go international this problem with the contractors will just go away.