Mnt Goat
...to change out the currency to the lower denominations...they will need to get a higher rate to the dinar as at 1/6 of a penny the lower denominations would be worthless...the plan developed by Dr Shabibi (then the director of the CBI) along with the IMF is to also follow through shortly afterwards with the reinstatement to FOREX with a revalued rate and to repeg the dinar from the sole peg of the US dollar.
We can be assured the new rate has to be at least $3.22 or greater.
We are now seeing on the screens a pending rate of close to $5.
This rate will NOT advance to FOREX trading until the OFAC sanctions are lifted on the IQD.
----🚨🇮🇶 Mnt Goat Highlights: Lower Denominations, FOREX & the Future of the IQD 💱
🔹 Lower denominations require a higher-valued dinar. Mnt Goat argues that introducing lower denomination banknotes while the IQD is worth only about 1/6 of a penny would make those notes impractical for everyday transactions.
🔹 The "Delete the Zeros" project remains central. According to her, the currency reform includes replacing the current large notes with lower denominations to support a modern economy.
🔹 Dr. Shabibi's original plan. She states that the plan developed by former CBI Governor Dr. Sinan Al-Shabibi, in coordination with the IMF, was to reinstate the Iraqi dinar to FOREX shortly after implementing the currency reform and to move away from its sole peg to the U.S. dollar.
🔹 Electronic banking reforms must be completed first. She also says the banking modernization—particularly in the Kurdistan Region—needs to be finalized before the lower denominations are introduced.
🔹 Her exchange-rate opinion. Mnt Goat believes the reinstated exchange rate would need to be at least $3.22 to make the lower denominations functional, and she claims to have seen an unconfirmed pending rate near $5 on banking screens.
🔹 OFAC remains, in her view, the final obstacle. She concludes that the IQD would not move to FOREX trading until OFAC sanctions/restrictions on the IQD are lifted.
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🔎 Clarifying the Role of OFAC: What Is Actually Sanctioned?
There is often confusion in the Iraqi dinar community regarding OFAC and its role in Iraq's financial system. Many people hear the phrase "OFAC sanctions on the IQD", but it is important to understand what OFAC actually does.
What is OFAC?
The Office of Foreign Assets Control (OFAC) is a division of the U.S. Department of the Treasury. Its mission is to protect the U.S. financial system by enforcing economic and trade sanctions against individuals, organizations, banks, companies, and governments involved in activities such as:
Terrorism
Money laundering
Corruption
Weapons proliferation
Human rights abuses
Sanctions evasion
Does OFAC sanction the Iraqi dinar?
Not as a currency.
There is no official OFAC program that sanctions the Iraqi dinar (IQD) itself. Instead, OFAC's actions are directed at who is using the financial system and how it is being used.
What does OFAC actually sanction?
OFAC can impose restrictions on:
🏦 Banks that fail to comply with international anti-money laundering (AML/CFT) standards.
👤 Individuals involved in corruption, terrorism financing, or sanctions evasion.
🏢 Companies or organizations that facilitate illegal financial activity.
💵 Specific financial transactions, especially those involving U.S. dollars that violate U.S. sanctions.
In other words, the sanctions fall on institutions and actors—not on the Iraqi dinar itself.
Why has this been important for Iraq?
For years, the U.S. Treasury has worked closely with the Central Bank of Iraq (CBI) to prevent U.S. dollars from being diverted to sanctioned entities, particularly those linked to Iran.
As a result, some Iraqi banks have lost access to international banking services or U.S. dollar transactions until they meet compliance requirements.
Recently, however, the CBI announced that after discussions with the U.S. Treasury, there is now an understanding to restore certain restricted Iraqi banks to foreign correspondent banking channels for non-U.S. dollar transactions, provided they comply with international standards.
This demonstrates that the focus is on strengthening Iraq's banking system, not restricting its national currency.
Why is this important for Iraq's economic future?
As Iraq modernizes its banking sector and reconnects to the global financial system, compliance with international banking regulations becomes essential.
A stronger banking system supports:
✅ International trade
✅ Foreign investment
✅ Cross-border payments
✅ Greater confidence in Iraq's financial sector
These reforms are also widely viewed as important steps as Iraq continues expanding its role in the global economy.
My Conclusion
In my opinion, it is more accurate to say that OFAC restrictions target non-compliant banks and financial actors—not the Iraqi dinar itself.
When commentators refer to "OFAC sanctions on the IQD," they are generally using shorthand to describe restrictions affecting Iraq's banking system and international financial access, rather than an official sanction against the currency.
Understanding this distinction helps separate verified regulatory actions from speculation and provides a clearer picture of how Iraq's banking reforms fit into its broader economic modernization.