MNT GOAT
...The most intriguing point in Al-Zaidi’s plan concerns the exchange rate...It is not yet going to FOREX. We will need the FOREX rate to be what they have been forecasting to be over $3...
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📊 IS IRAQ LAYING THE FOUNDATION FOR A STRONGER DINAR? 🇮🇶💵
One statement caught my attention:
"We will need the FOREX rate to be what they have been forecasting... over $3."
While this remains speculation and there is no official confirmation from the Central Bank of Iraq that the Iraqi dinar will trade above $3, it's worth analyzing what would actually have to happen for a stronger internationally traded dinar to become possible. 👇
During the COVID crisis, Iraq temporarily devalued its currency from 1,182 IQD/USD to 1,450 IQD/USD due to collapsing oil revenues. Once oil exports recovered, the CBI strengthened the exchange rate back to 1,320 IQD/USD, showing that the devaluation was driven by short-term financial pressures—not by a structural weakness in Iraq's banking system.
Fast forward to today, and Iraq is no longer where it was in 2020.
✅ The banking sector has undergone significant modernization through digital payments, banking reforms, stronger compliance with international standards, and increased financial transparency.
✅ The Central Bank has built strong foreign exchange and gold reserves, creating a much stronger monetary foundation.
✅ Iraq continues implementing financial reforms aimed at greater integration with the international financial system.
At the same time, Prime Minister Al-Zaidi's economic vision is focused on reducing Iraq's dependence on oil. The long-term objective is for 45%–50% of government revenue to come from non-oil sectors, including industry, agriculture, tourism, logistics, technology, and private investment. This type of diversification is exactly what economists generally view as essential for supporting a stronger national currency over time.
However, several important milestones still remain before an internationally traded dinar could emerge:
🔹 Full international convertibility of the IQD.
🔹 Trading on international FOREX markets.
🔹 Sustained global demand for the Iraqi dinar.
🔹 Continued economic diversification.
🔹 Long-term political and financial stability.
The important takeaway is this:
Many of the structural reforms that Iraq would need for a stronger currency are no longer just plans—they are already being implemented, and several have made substantial progress.
Whether those reforms eventually support a significantly stronger exchange rate remains to be seen, and no official institution has announced a future FOREX value. But Iraq's current direction shows a clear effort to build the economic and financial foundations that could support a stronger currency over the long term.
📈 The question may no longer be whether Iraq is reforming its economy—that process is clearly underway.
The real question is how far those reforms will ultimately take the Iraqi dinar.
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