Iraq is preparing to export its oil via Türkiye, Jordan, Egypt, and Saudi Arabia... Syria is on hold.
The Ministry of Foreign Affairs announced on Thursday plans for external oil connections with four countries: Turkey, Jordan, Egypt, and Saudi Arabia. It noted that work on the Kirkuk-Banias pipeline has been postponed due to the situation in Syria, as the ministry explained that the security situation in Syria prevents Iraq from taking actual steps to restore the pipeline.
The Undersecretary of the Ministry, Hisham Al-Alawi, said in a statement to the official agency, which was followed by the 964 network ,
that “work on the Kirkuk-Banias pipeline has been postponed due to the security situation in Syria, which prevents us from taking actual steps in this direction,” indicating that “Iraq has several alternatives for external oil connections, including through Turkey and Jordan to Egypt, in addition to Saudi Arabia.”
He added that “the Iraqi government has worked over the past years to rehabilitate the oil export pipeline through Turkey, and there are talks with Jordan and Egypt,” noting that “Iraq has adopted the project to link the oil fields through Haditha, and discussions were about implementing a project to complete this link through Jordan to Egypt, but work on that has not started.” link
Iraqi dinar were ever valued at 1:1 with the United States dollar, then yes:
1 IQD × 1.00 USD = 1 USD
1,000,000 IQD × 1.00 USD = 1,000,000 USD
However, this calculation only applies if an official exchange rate is internationally recognized and accessible through the global banking system.
Is a 1:1 Rate Official?
As of now, Iraq has not officially announced a 1:1 exchange rate.
The Central Bank of Iraq maintains the official rate, and any change would need to be formally declared and integrated into international forex systems.
Speculation about future rates is common in emerging market currencies, but official implementation is what ultimately determines real exchange value.
Shifting Bank Attitudes Toward the Iraqi Dinar
Frank26 also made an interesting observation regarding perception changes:
In 2023, mentioning the dinar often triggered immediate skepticism from banks.
Now, reportedly, some banks are at least willing to discuss it.
If accurate, that shift could reflect:
Increased awareness
Regulatory clarification
Reduced stigma
More familiarity among financial institutions
However, it's important to note that:
Many banks still do not actively exchange Iraqi dinar.
Currency exchange policies vary by institution and country.
Exchange availability does not automatically indicate a revaluation.
The difference between “scam perception” and “recognized emerging currency” is largely tied to regulation, liquidity, and official policy — not rumor cycles.
What Would It Take for 1:1 to Happen?
For Iraq to move toward parity with the U.S. dollar, several macroeconomic conditions would typically need to align:
Sustained economic growth
Strong foreign reserves
Stable political climate
Reduced corruption
Diversified revenue beyond oil
Full international integration of the banking system
Iraq has made reforms in digital customs, anti-corruption tracking, and financial modernization — but currency valuation is a complex monetary policy decision involving domestic and international factors.
Featured Snippet: How Currency Exchange Is Calculated
How do you calculate a currency exchange payout? Multiply the amount of currency you hold by the official exchange rate set by the central bank and recognized internationally.
Would 1 million dinar equal 1 million dollars at 1:1? Yes — mathematically, if the official rate were 1 IQD = 1 USD.
Is there an official 1:1 rate now? No. There has been no official announcement of a 1:1 exchange rate.
Important Reality Check
Currency valuation is not based on investor desire — it is based on:
Money supply
GDP
Foreign reserves
Trade balance
Central bank policy
While optimism exists in parts of the dinar community, any major exchange rate shift would require coordinated economic policy and global financial system integration.
Q&A Section
Q1: Is the exchange formula really that simple?
Yes. The math is simple. The complexity lies in whether the rate is officially recognized and accessible.
Q2: Can banks refuse to exchange dinar?
Yes. Banks are not required to exchange every foreign currency. Availability depends on liquidity, regulations, and demand.
Q3: Does increased willingness to talk about dinar mean a revaluation is imminent?
Not necessarily. It may reflect normalization or awareness rather than a confirmed monetary shift.
Q4: Could Iraq ever reach 1:1?
It is theoretically possible for any currency to change value over time, but such a move would require substantial economic transformation and official policy action.
Final Thoughts
The formula for exchange is straightforward. The policy behind the rate is not.
While discussions of a potential 1:1 rate generate excitement, investors should remain grounded in official announcements from the Central Bank and global forex platforms.
Speculation can change sentiment — but only official monetary reform changes exchange rates.
Question: "When all this happens what is the formula for the exchange? IYO is it rate multiplied by the amount of [dinar you have]?"
All you need to know is that they're trying to get to 1 to 1 with the American dollar therefore if you have 1 Iraqi dinar you have 1 American dollar. If you have a million Iraqi dinars you have a million dollars...
Back in 2023 the moment you said [dinar], BOOM, it's a scam!. But now the moment you say Iraqi dinar, BOOM, we'd like to talk to you, or how can we help you.
If you hear that it's a scam it would be maybe 1 out of 10 [banks] whereas back in '23 it was all 10. You see the difference? It's not a secret anymore. Everybody knows.
Baghdad and Erbil unify customs system to control markets and protect the value of the dinar
The Iraqi General Authority of Customs announced on Thursday tangible progress in economic relations between the federal government and the Kurdistan Regional Government, confirming the region's response to the initiative to unify customs tariffs and implement federal decisions, in a strategic step aimed at controlling local markets, combating money laundering, and maintaining the stability of the value of foreign currency.
In a press statement, the Director General of the General Authority of Customs, Samer Qasim, revealed that "the Kurdistan Region has actually begun to respond to the issue of unifying customs tariffs with the federal ports," noting that the steps to comply with Resolution No. (597) and the customs instructions issued by Baghdad have entered into force.
Qasim explained that "the past two days witnessed a series of meetings in the capital, Baghdad, which resulted in initial agreements and practical understandings to begin unifying the customs system," considering this step a fundamental pillar for resolving many outstanding files and issues between the two sides.
The Director General of Customs emphasized that traders operating outside the customs and tax system will be the "most affected" by these measures. He added, "Working with the ASYCUDA electronic system requires traders to possess a valid import ID and tax ID. Accordingly, no financial transfers will be allowed to pass through this unified digital system."
Qassem explained that the tariff unification process will not include all goods in the first phase, but will focus on the "most imported goods" that cause large amounts of dollars to be drained abroad.
The Iraqi official concluded his statement by noting that the objectives of this coordination are “to regulate import operations, protect the Central Bank’s hard currency reserves, prevent the entry of low-quality goods, and provide a safe environment to protect the national product through a clear and comprehensive national customs policy.” link
Recent developments in Iraq are drawing major attention from currency watchers and global investors. Statements attributed to MarkZ [via PDK] highlight two key themes shaping today’s dinar narrative:
Iraq’s firm stance on digitizing customs and imports through ASYSCUDA.
The Central Bank of Iraq rejecting speculation about lowering the value of the Iraqi dinar.
Let’s break down what this means, why it matters, and how it could impact the future outlook of the Iraqi dinar.
Iraq’s Digital Customs Reform: The ASYSCUDA Decision
The state administrative coalition has supported the ASYSCUDA implementation decision — a move aimed at blocking “political investment through chaos” and preventing bribery in customs processes.
ASYSCUDA (Automated System for Customs Data) is a digital customs management system designed to:
Digitize import/export documentation
Increase transparency
Reduce corruption
Improve revenue tracking
Prevent off-the-books transactions
By forcing everything into a digital platform, Iraqi authorities can track revenue streams more effectively and reduce opportunities for corruption.
This reform directly strengthens Iraq’s financial credibility and supports long-term economic stability — a key pillar for any currency seeking international confidence.
CBI Responds to Dinar Devaluation Rumors
In a recent article titled “Iraqi dinar speculation misplaced: CBI boss”, the head of the Central Bank of Iraq, Ali Al-Alaq, addressed growing speculation about a possible reduction in the dinar’s value.
His message was clear:
The Central Bank is not planning to reduce the value of the Iraqi dinar.
Iraq holds strong foreign currency reserves.
Iraq holds substantial gold reserves.
The country can back approximately 140% of its currency supply.
That level of reserve backing is significant. In monetary terms, it suggests stability rather than weakness.
Alaq emphasized that the speculation is misplaced and that Iraq does not need to devalue its currency to address its economic situation.
Why Strong Reserves Matter
When a central bank can back more than 100% of its currency in reserves, it sends a powerful message to global markets:
Financial resilience
Reduced risk of currency collapse
Increased investor confidence
Greater flexibility in monetary policy
For comparison, most central banks do not publicly claim backing ratios above 100%.
If Iraq can truly support 140% of its currency in reserves, this implies a strong defensive position — not one preparing for devaluation.
Historical Comparisons: Kuwait and China
Observers have drawn comparisons to pre-revaluation periods in:
Kuwait
China
Before past currency adjustments, rumors of instability circulated widely. In those cases, speculation preceded significant policy moves.
While no official revaluation has been announced in Iraq, some analysts argue that strong denials and stable reserve positions often precede strategic monetary adjustments — not collapses.
It’s important to remain grounded in official data and statements while understanding historical patterns.
How Digital Reform Supports Currency Strength
The ASYSCUDA implementation aligns with broader economic reforms designed to:
Modernize Iraq’s financial infrastructure
Increase government revenue collection
Combat corruption
Improve compliance with international standards
A stronger customs system increases non-oil revenue — a critical goal for Iraq’s economic diversification.
When a country strengthens revenue tracking and reduces corruption leakage, it stabilizes its fiscal position. That, in turn, strengthens currency fundamentals.
What This Means for Iraqi Dinar Watchers
From a macroeconomic standpoint:
Iraq is modernizing its customs systems.
The Central Bank is publicly rejecting devaluation rumors.
Foreign reserves and gold holdings remain strong.
Anti-corruption measures are being digitized.
This combination signals structural strengthening rather than currency weakening.
However, investors should always exercise caution, conduct independent research, and understand that currency markets are influenced by multiple global and domestic factors.
Featured Snippet: Key Takeaways
Is Iraq planning to devalue the dinar? No. The Central Bank of Iraq has stated it is not planning to reduce the value of the dinar.
What is ASYSCUDA?
A digital customs system that increases transparency, reduces corruption, and improves revenue tracking.
Does Iraq have strong reserves? According to CBI leadership, Iraq can back approximately 140% of its currency with reserves and gold.
Q&A Section
Q1: Why is digitizing customs important for currency stability?
Digitizing customs increases transparency, reduces corruption, and ensures accurate revenue collection. Stronger government revenue improves fiscal health, which supports currency stability.
Q2: What does 140% reserve backing mean?
It means the country claims to hold reserves and gold equivalent to 140% of the currency supply — suggesting strong financial coverage.
Q3: Are rumors of devaluation common before major currency moves?
Historically, currency markets often experience speculation before policy adjustments. However, speculation alone does not confirm future action.
Q4: Is there an official revaluation announcement?
No official revaluation has been announced by the Central Bank of Iraq.
Final Thoughts
Iraq appears focused on structural reform, digital modernization, and maintaining monetary stability. With firm public statements from the Central Bank and ongoing anti-corruption measures through digital customs systems, the country is signaling strength rather than weakness.
As always, stay informed, monitor official statements, and analyze economic fundamentals carefully.
“The state administrative coalition supported the ASYSCUDA decision. Blocking the path of “political investment through chaos” and prevented buying through bribery”
They are sticking to their guns on customs and imports. By forcing everything to be digital…it's easy to track. Stops the money going to corrupt people
Alaq is saying to stop speculating because we are not going to reduce the value of the dinar. They are going to continue to hold it strong. They have the reserves and they have the gold …they do not need to lower the value. They can back 140% of their currency. Remember – these were the kind of rumors in Kuwait just before they revalued. And the same rumors in China before they revalued.