Saturday, January 10, 2026
Monetary Policy Indicators Confirm The Central Bank Will Be First In 2025
Monetary Policy Indicators Confirm The Central Bank Will Be First In 2025
In countries that adopt an institutionally managed economic system, each institution retains its independence and authority to manage economic affairs according to the methodology and philosophy that aims to achieve economic stability and the well-being of society.
Therefore, central banks receive special attention in most countries of the world as the sovereign and prudent economic institution concerned with achieving the above goal through the application of monetary policy tools and the realization of its objectives.
With the approach of the end of 2025 and the beginning of 2026, and following a review and analysis of the policies, programs, and procedures implemented by the Central Bank of Iraq in 2025—a year of political and economic challenges and crises, and numerous changes at the global and regional levels, which negatively and positively impacted the Iraqi economy—the Central Bank demonstrated its wisdom and efficiency in overcoming challenges and moving forward to achieve its objectives set for the next three years.
It also proved to be the leading economic institution in 2025. On this occasion, we must appreciate the outstanding efforts made by the specialized administrative and technical leaders and distinguished employees of the Central Bank who contributed effectively to the implementation of what was stated in the government program in Axis 12 (Financial and Banking Reform) during the years (2023-2025) and the Central Bank’s third strategy and the comprehensive banking reform project.
The launch of the financial inclusion strategy, the promotion of digital transformation, the activation of electronic payments, and the strengthening of cybersecurity.
The Central Bank was able to achieve economic growth and stability in extremely complex economic, security, and political conditions, and was able to implement developmental, structural, and technological policies and programs, and take numerous measures in cooperation with the government to regulate foreign trade financing, control foreign transfers, integrate into the global financial and banking system, comply with international standards, and move to the electronic platform.
Achieving the main and sub-goals of its third strategy and starting to implement the comprehensive banking reform project according to the paths drawn up in cooperation with the global consulting firm Oliver Wyman to enable the banking sector to grow and develop and to be a solid, comprehensive, modern and flexible sector that works hard to build a rapidly growing national economy, contributes to development and investment, creates a cumulative increase in the gross domestic product, provides one million job opportunities for the unemployed, raises the market value of the private banking sector and achieves rewarding and sustainable returns for its investors. In addition to increasing foreign investment and achieving growth in financial inclusion, financing and deposits.
Analysis of monetary policy indicators as of the third quarter of 2025 indicates the building of foreign exchange reserves of around $100 billion. Gold reserves at the Central Bank recorded a significant growth rate of (64%), reaching a value of (27.552) billion dinars, equivalent to (173) tons during the same period, compared to a value of (16.817) billion dinars in the second quarter of 2024.
The decrease in the issued currency contributed to a decrease in the inflation rate, which maintains the stability of the general price level, as the currency issued by the Central Bank recorded a decrease in the rate of (5.50%), reaching (99.681) billion dinars during the same period, compared to a value of (104.127) billion dinars in the second quarter of 2024.
The decrease in the inflation rate also indicates a decrease in the general price level, as inflation recorded a low rate of (76%), reaching (0.8%) compared to the second quarter of 2024, which reached (3.5%). This confirms that the Central Bank was able to build basic pillars for monetary and economic stability and achieve the most important objectives of monetary policy.
Therefore, I believe, with complete impartiality and transparency, that we should stand in respect for the efforts of the Central Bank and its distinguished staff who achieved the above accomplishments, and I hope that those efforts will be evaluated, which is a legitimate entitlement. https://economy-news.net/content.php?id=63555
The Dollar Stabilizes As Concerns About Venezuela Subside.
The Dollar Stabilizes As Concerns About Venezuela Subside.
Money and Business Economy News — Follow-up The dollar held near a two-week high as Asian trading began on Tuesday, with market jitters over U.S. military action in Venezuela easing and dovish comments from Federal Reserve officials encouraging risk-taking on Wall Street.
The dollar index, which measures its performance against a basket of six currencies, stood at 98.36, up 0.04%, after ending a four-day winning streak on Monday.
“The market isn’t really worried about what’s happening geopolitically, at least in the near term,” said Rodrigo Catril, a currency strategist at National Australia Bank in Sydney. He added that this environment “reduces the appeal of safe-haven assets, and we’ve seen the dollar in a difficult position,” according to Reuters. https://economy-news.net/content.php?id=64219
Central Bank Governor: Weak Economic Diversification Is Putting Pressure On The Dollar And The Exchange Rate
Central Bank Governor: Weak Economic Diversification Is Putting Pressure On The Dollar And The Exchange Rate.
Banks Economy News – Baghdad The Governor of the Central Bank of Iraq, Ali Al-Alaq, confirmed that the limited economic diversification and weak productive sectors have made Iraq a country that is primarily an importer, which puts continuous pressure on the dollar and the exchange rate.
Al-Alaq explained, during a lecture on development financing in light of the global debt crisis, held on the sidelines of the Fifth Regional Conference of the Al-Baraka Forum for Islamic Economics, which is being held in Cairo in partnership with the General Secretariat of the League of Arab States, that “the Iraqi scene is facing intertwined pressures and accumulated infrastructure and development challenges, which require diversifying the economy and maximizing public revenues,” noting that “public finances in Iraq depend on oil exports by more than 90%, which is an unconventional source subject to fluctuations in global prices, which leads to fluctuations in revenues and weak financial stability, which necessitates finding structural solutions.”
He explained that “the limited economic diversification and weak productive sectors have made Iraq a country that is primarily an importer, which puts continuous pressure on the dollar and the exchange rate, especially with the rise in purchasing power and the increase in daily demand for foreign currency, which directly affects monetary policy, which has achieved great success in balancing the maintenance of price levels, managing liquidity, and stimulating the economy.”
He pointed out that "public spending pressures, particularly on salaries, subsidies and basic services, pose an additional challenge," stressing "the difficulty of reducing these expenditures due to the potential social repercussions, at a time when the central bank is striving to avoid inflation and maintain monetary stability to protect the social structure of the country."
Al-Alaq pointed out that “Iraq has been able in recent years to finance part of the financial deficit through the development of non-oil revenues, while continuing to coordinate with the Prime Minister with the aim of maximizing these resources and reducing dependence on oil,” in an effort to break what he described as the “financial dominance” of oil revenues over the general budget.
The governor of the Central Bank affirmed that "the stability of the exchange rate is a pivotal goal, as it provides a safe cover for investors and citizens," noting that "Iraq has succeeded in raising the size of foreign reserves and linking them to a package of integrated monetary policies, which have contributed to reducing the inflation rate to about 1%, which is among the lowest levels recorded."
He added that "Iraq is in the process of governing the banking sector," revealing that "an update is underway in cooperation between the Central Bank and an international company for a comprehensive reform plan, which includes reviewing bank licenses according to new conditions and standards, in order to strengthen the banking system and raise its efficiency."
Regarding Islamic bonds, Al-Alaq explained that "there are no Islamic bond instruments in Iraq yet," noting that "there is an integrated project submitted by the Central Bank to the Iraqi Parliament for voting, which opens new horizons for financing and investment."
On the issue of debt, Al-Alaq stressed "the need to find an organized and continuous international dialogue between creditors and debtors," calling for "the establishment of a regional platform to organize this dialogue and reduce the gap between the two parties, in order to ensure negotiations without significant losses, and to contribute to the implementation of reforms and the strengthening of the economic base with the support of the participating countries."
He pointed to “international studies showing that losses in the debt file may range between 20% and 25% as a result of poorly considered financing conditions or delays,” stressing that “negotiating platforms contribute to reducing these losses and enhancing international cooperation by improving debt conditions, bridging the information gap, and exchanging experiences in economic reform processes.” https://economy-news.net/content.php?id=63504
A Sudanese Advisor Explains To "Al-Eqtisad News" The Repercussions Of Fixing The Exchange Rate At 1300 Dinars In The 2026 Budget.
Money and Business Economy News – Baghdad The Prime Minister’s Advisor for Economic and Financial Affairs, Mazhar Muhammad Salih, revealed on Thursday the impact of the Central Bank of Iraq’s decision to fix the official exchange rate at 1300 dinars in the 2026 budget.
Saleh told Al-Eqtisad News that "the government decided to fix the official exchange rate at 1,300 dinars per US dollar in the 2026 budget project, within the framework of what he described as 'calculated coordination between fiscal and monetary policies'."
He explained that this step represents a limited increase in the value of the Iraqi dinar, and is a positive sign that reflects the strength of the country’s foreign reserves and the ability of monetary policy to confidently maintain stability.
He pointed out that fiscal policy is now moving towards maximizing real revenues, moving away from resorting to what is known as "monetary adjustment," which relies on using the exchange rate as an indirect financing tool, stressing that this trend promotes the use of authentic financial instruments to mobilize resources and control spending.
The advisor stressed that this monetary signal sends a clear message that containing inflation and stabilizing the national economy is a permanent priority, while maintaining the independence of monetary policy, and pushing fiscal policy towards greater efficiency and responsibility, in order to achieve the sustainability of macroeconomic balance in the Iraqi economy.
Earlier today, the Central Bank of Iraq addressed the Ministry of Finance regarding fixing the official exchange rate at 1300 dinars in the 2026 budget. https://economy-news.net/content.php?id=64316
🚨 Jeff Explains the Timing: Why Iraq Changes Currency Rates on Sunday & What We’re Waiting For 🚨
📌 Jeff Disclaimer
All statements shared by Jeff reflect personal opinion and interpretation.
This information is not financial advice.
Always consult a qualified financial professional before making decisions.
🌍 Why Iraq Changes Currency Rates on Sunday
According to Jeff, Iraq has a very specific and deliberate method when it comes to major currency rate changes.
🕰️ Timing Is Everything
Iraq historically adjusts currency rates:
During their Sunday morning
When global financial markets are closed
To prevent international market shockwaves
“They do it over what is their Sunday morning when all world markets are closed so they don't have a ripple effect.”
📈 Why the Magnitude Matters
Jeff emphasized that this is not a small adjustment.
Expected increase discussed:
3,000% to 4,000%A move of this size:
Must be controlled
Must avoid market instability
Requires precise timing
🔎 This explains why silence often precedes major changes.
❓ The Big Question: “What Are We Waiting On?”
Jeff addressed the most asked question directly.
🏛️ Government Formation Is the Key
“In my opinion, we’re waiting on the government to be formed.”
Why is this so important?
A fully formed government signals:
Political stability
Security
Institutional readiness
🏦 The Central Bank of Iraq’s Position
The Central Bank of Iraq (CBI) has been consistent for years.
🔑 Two Non-Negotiable Requirements:
Security
Political Stability
Jeff noted:
These are the core components
Without them, the CBI will not consider reinstating the currency value
💡 Government formation creates the perception and reality of stability, allowing the CBI to act.
⚡ How Fast Can the Government Be Formed?
Here’s where optimism comes in.
Jeff explained:
Once agreements are finalized
The government formation process can:
Move very fast
Be completed quickly once triggered
⏳ This suggests the delay is not procedural — it’s strategic timing.
🔄 Why Stability Comes Before Reinstatement
From Jeff’s perspective:
Currency reinstatement is not just economic
It’s confidence-based
International markets require assurance that:
Leadership is solid
Security structures are in place
Policies won’t reverse overnight
📌 Once those boxes are checked, rate change mechanics can activate rapidly.
⭐ Featured Snippets
🔹 Why does Iraq change currency rates on Sunday?
Iraq adjusts rates on Sunday morning when global markets are closed to prevent market ripple effects.
🔹 How big could the dinar rate change be?
Jeff suggests discussions involve a potential 3,000% to 4,000% increase.
🔹 What is delaying the revaluation?
The final step is government formation, which provides political stability required by the CBI.
❓ Q&A – Common Questions Answered
Q: Is the rate change already prepared?
A: Jeff suggests the mechanism is ready, but timing depends on stability.
Q: Why can’t Iraq revalue without a government?
A: The CBI requires political legitimacy and security before acting.
Q: Once the government forms, how long could it take?
A: According to Jeff, it can move very quickly.
Q: Why is the expected rate change so large?
A: Iraq is repositioning its currency value after long-term suppression.
🔗 Official Links & Community Resources
🌐 Main Blog:
👉 https://dinarevaluation.blogspot.com/
📢 Telegram Channel:
👉 https://t.me/DINAREVALUATION
📘 Facebook:
👉 https://www.facebook.com/profile.php?id=100064023274131
🐦 Twitter / X:
👉 https://x.com/DinaresGurus
📺 YouTube Channel:
👉 https://www.youtube.com/@DINARREVALUATION
🚀 Hashtags
#JeffUpdate #IraqiDinar #RVTiming #CBI
#CurrencyReinstatement #GovernmentFormation
#PoliticalStability #SundayRateChange
#GlobalReset #IQD #FinancialShift
🙏 Final Thoughts
Jeff’s explanation brings clarity to why timing matters, why Sundays are critical, and why government formation is the final gate.
Everything points to preparation being complete — stability is the switch.
Stay informed. Stay patient. Stay grounded.
Jeff
They do [rate changes] over what is their Sunday morning when all world markets are closed so they don't have a ripple effect with a rate change of that magnitude [3,000% to 4,000% increase] ...
That's why they do it that way.
Question: "What are we waiting on?"
IMO we're waiting on the government to be formed. The the central bank that could be perceived as a level of stability...The central bank has always said security and political stability are the two critical core components of allowing them to consider reinstating the value of the currency...The formation of the government can go very fast...
They warned of a "major recession"... Baghdad merchants complain about high taxes and customs duties: the citizen is the one who suffers
They warned of a "major recession"... Baghdad merchants complain about high taxes and customs duties: the citizen is the one who suffers
1/8/2025
Wholesalers and owners of goods and merchandise warehouses in the capital, Baghdad, expressed their strong dissatisfaction with the government’s recent decisions regarding increasing taxes and implementing the new customs tariff, in addition to imposing a quality mark on all imported goods.
Traders confirmed that these simultaneous measures caused clear disruption in buying and selling, warning that continued tax pressure would lead to a major recession in local markets, as a result of the sudden increase in import and storage costs, and the difficulty for the market to absorb these price increases.
Salem Hassan, a construction materials trader, told Shafaq News Agency that "customs duties have increased significantly to more than 30%, which is equivalent to one-third of the price of some materials," noting that the average citizen is no longer able to purchase his basic needs.
He added that "this increase has caused a recession in the markets, while wholesale stores have raised prices for traders," calling on the state to find urgent solutions to this problem.
For his part, a wholesaler of single-use plastic materials in the Jameela Industrial Area pointed out that raising customs duties prompted them to stop import operations, noting that these materials are used daily in packaging food products.
The traders explained to Shafaq News Agency that "the state must find quick solutions, because the citizen will be the victim as he is the last consumer," indicating that the imposed customs duties are excessive.
For his part, economist Mohammed Al-Hassani told Shafaq News Agency that imposing customs duties on goods and commodities would lead to higher inflation rates and an economic recession.
He explained that the government imposed these fees at a time when Iraq does not have an industrial sector capable of meeting market needs, and that the available local production is insufficient, warning that this will contribute to increasing unemployment rates among young people. LINK
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