SHAFAQ NEWS
PM Al-Zaidi explains 1,500-dinar dollar rate to parliament
Read more… https://www.shafaq.com/en
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IRAQ’S 1,500 RATE: LOOK BEYOND THE “DEVALUATION”
The explanation given by PM Al-Zaidi to Parliament is very revealing. 👀
The government says Iraq was facing severe fiscal pressure, with public debt exceeding 208 trillion IQD and monthly government needs of around 10 trillion IQD. With oil revenues coming in U.S. dollars, changing the exchange rate to 1,500 IQD per dollar allows the government to generate more dinars from the same dollar revenues. 💵➡️💴
But here is where my observation becomes important:
This move can also increase the amount of IQD liquidity flowing through the banking system.
At the same time, Iraq is bringing additional U.S. dollars into circulation and making them available through the banking system. 🏦💵
So we are potentially seeing both sides of the equation being addressed:
💴 More IQD liquidity
💵 More USD liquidity
📉 Efforts to narrow the official/parallel-market gap
🏦 Greater banking-system capacity
📊 A new exchange-rate structure built into the federal budget
And remember: the new structure is 1,500 IQD for government purchases, 1,510 for banks, and 1,520 for the public.
To me, this is important because one of the things I have repeatedly said was necessary before a potential Delete Zeros process would be the strengthening of the banking system and ensuring adequate liquidity.
⚠️ Does this confirm Delete Zeros or an RV? No.
But when you put these developments together, the picture becomes much more interesting.
I’m not looking at one headline.
I’m looking at the sequence of measures:
Fiscal adjustment → increased IQD liquidity → increased USD liquidity → narrowing the exchange-rate gap → strengthening the banking system.
🧩 That’s why I believe we should keep watching the process and continue connecting the dots.
🇮🇶💵 The pieces are moving.
#Iraq #IQD #IraqiDinar #DeleteZeros #CBI #MonetaryReform #IraqNews #DinarAnalysis
