Once the parallel market gap is gone and the dollar matches or better (1:1), the CBI official rate of 1320, my contact told me the “official” rate will then revalue.
My guess is it will be around 1166ish or better. They might go straight to 1 dinar = $1 dollar even. Was 1166 not the “official” rate of the Dr Shabibi era when in 2012 he announced the Project to Delete the Zeros was targeted for the fall of that year? I think Ali Alaq has a better plan going better because he can, while in Dr Shabibi era Iraq was still under sanctions.
This is how it works:
Remember for your thought process that a rise in the rate of the dinar is less dinars to the US dollar not more.
I know it is backwards to what some believe as we call a rise usually means more not less. So, actually it is a downward trend in the number of dinars to make up one US dollar. This strengthens the dinar.
So, if the official rate is 1320 we want the dollars in the parallel market to reflect the same or less rate of 1320.
IRAQ’S CUSTOMS REVENUES REACHED 59 BILLION DINARS AFTER IMPLEMENTING THE ASYCUDA SYSTEM.
Finance Minister Taif Sami announced on Friday a significant increase in customs revenues following the implementation of the ASYCUDA Customs Automation System, amounting to more than 59 billion dinars.
Sami said in a statement to the official agency, followed by “Al-Eqtisad News,” that “customs revenues before the implementation of the ASYCUDA system amounted to 375,675,732,360 dinars, while after the implementation they rose to 435,421,672,805 dinars, an increase of 59,745,940,445 dinars.”
She added, “The General Authority of Customs has begun implementing the ASYCUDA system in 15 customs centers, including: Air Cargo Customs, Dry Port, Baghdad International Airport Terminal, Grand Welcome Square Customs, Trebil, Safwan, Arar, Umm Qasr Middle, Umm Qasr South, Kirkuk Airport, Zurbatiyah, Al-Mundhiriyah, Mandali, Al-Shaib, and Al-Shalamcheh.”
She explained that “the Authority has currently begun implementing the second phase of the system, which will extend over two years. This phase includes its implementation in eight remaining customs centers, in addition to linking 12 electronic applications to the system, including: land transport clearance, the value system, smart selectivity, the exemptions system, and licenses and certificates. This will enable the system to be linked with all ministries.”
I want everyone to know that I have thought about having a “live” conference call however with my very busy schedule this simply is not possible right now.
As we get closer to the reinstatement perhaps, I can juggle some time to do short update calls while we exchange or are about to exchange.
This way you do not have to wait till the next Newsletter to get answers to your questions at that critical time.
However this is up to each and every one of my readers as I cannot do all this without some appreciation for all my efforts of research and calls to Iraq.
Also, these up-front audio snip-its I include with the Newsletters are VERY, VERY important. You may want to listen carefully to them and then maybe even replay them. They are chock-full of information. Listen carefully!
In today’s news I want to point out again the rise of the dinar against the dollar continues.
Many economists believe that the rate of the dollar will SOON be equal to the “official” CBI rate of the dinar.
Does this sound like 1:1 to you?
Let’s break it down. So, if the dollar on the parallel market does reach 1320 that’s 1320:1320, is it not?
Then the official rate:parallel market rate, right?
Is this not the same as 1:1? Can you see why they had to get this parallel under control for the next stage of currency reform which in the next in-country revaluation?
Okay all you mathematicians out there – what do you think? Do you get it now? Do you see it now? “WOW! WOW! WOW!” again… Do you see now why I have been placing so much emphasis on this parallel market?
Heck, it was not me alone but the CBI too, of course with the efforts from my CBI contact. “WOW! WOW! WOW!” again… Choo-Choo!
Why would they tell us this if there was not some substance to it. In the articles today we get both sides of the story about the rising dinar and so we can make up our own “opinions” on this matter.
So is this rise in the dinar being permanent or just a short phase. But if you do remember all the FACTS we have been reading like the US cutting off the dollar supply, the correspondent banks and June’s next move and so on and so forth. You can’t forget what you learned from the past.
So, let’s stick to the main issues. Let’s stick to the FACTS and see where it gets us. The main issues are:
1.Will the trend in rise continue or not? 2.Are the causes of this trend from the CBI monetary reforms or other factors,
3. or are you going to believe in false claims of other short-term reasons, which would allow the dinar to drop again?
I’d like to believe that the CBI reforms are now kicking in as the reason for the rise in the dinar.
In fact the director of the CBI told us it was himself. There is also more substantial proof that this is the case. Yes, these other factors help too. They have told us over and over again that they needed time for the reforms to work and so now we see them working now.
All currencies have an element of “speculation” involved to drive up or down the rate very quickly.
But, we in my blog are looking at trends and not speculation. We must look at all the information as a whole of what we have been reading from the past and current news to draw our conclusions.
And the conclusions show us all indicators the rise in the dinar is being orchestrated by the CBI, as the dinar is slowly being pulled out the “sanctioned” mode and put back into circulation with the rest of the world, for the rest of the world.
Just keep remembering there is a process to do this work and it simply does NOT happen overnight as many of these idiotic, stupid intel gurus want you to believe
.
My CBI contact has told me that the Iraqi dinar must get off the sole de facto peg to the US dollar to realize (show) any real value of significance.
This can only happen using a “basket” of currencies for the new peg.
This will only happen with a reinstatement back to FOREX is applied.
But for now, we take each step slowly and with an understanding of what is happening. We watch and wait for the next step and then the next and next. This is our choo-choo ride and the stops along the way are the steps to get the reinstatement…remember?
Yes, it is all happening NOW not years from NOW. It is right in our faces now only many can’t see it, want to believe and yet since all these other articles play a role for the significance of the actions of the CBI in the monetary reform process.
Yes, many of these intel gurus are all too busy with their fantasy intel guru bullshit and it has clouded their reality.
What can we expect, most likely in 2025?
Once the parallel market gap is gone and the dollar matches or better (1:1), the CBI official rate of 1320, my contact told me the “official” rate will then revalue.
My guess is it will be around 1166ish or better. They might go straight to 1 dinar = $1 dollar even. Was 1166 not the “official” rate of the Dr Shabibi era when in 2012 he announced the Project to Delete the Zeros was targeted for the fall of that year? I think Ali Alaq has a better plan going better because he can, while in Dr Shabibi era Iraq was still under sanctions.
This is how it works:
Remember for your thought process that a rise in the rate of the dinar is less dinars to the US dollar not more.
I know it is backwards to what some believe as we call a rise usually means more not less. So, actually it is a downward trend in the number of dinars to make up one US dollar. This strengthens the dinar.
So, if the official rate is 1320 we want the dollars in the parallel market to reflect the same or less rate of 1320.
MOST NOTABLY, THE TRAVELERS’ DOLLAR. AL-SUDANI’S ADVISOR REVEALS THE REASONS FOR THE EXCHANGE RATE’S DECLINE.
Mazhar Mohammed Saleh, the Prime Minister’s financial advisor, revealed on Thursday the reasons for the decline in the dollar exchange rate, indicating that three factors led to weak demand in the parallel market:
the Central Bank’s success in financing foreign trade by strengthening the dollar with national bank correspondents abroad, encouraging financing small businesses without costly intermediaries, and the success of travelers in collecting their dues in foreign currency through payment cards in large amounts at a reduced cost and at an exchange rate of 1,320 dinars per dollar.
Three main factors have led to weak demand in the parallel market for the dollar, causing its price to decline towards the official exchange rate at an average rate of change in favor of the dinar by about 15% over the past few weeks or months. The first is the success of the Central Bank of Iraq in financing foreign trade for the private sector and major traders by rapidly strengthening the dollar with correspondent banks of national banks abroad with AAA ratings. This is in addition to the start of direct financing of foreign banking operations in euros, Emirati dirhams, and Chinese yuan through bank correspondents of Iraqi banks with high credit ratings, which encouraged the speed of payments and transfers in trade with the markets of the UAE, Turkey, and China, which are among the largest commercial shopping centers for Iraq. The second is encouraging the financing of small businesses without costly intermediaries, which constitutes approximately 60% of private sector trade after many of the previously imposed restrictions were lifted and dealings were conducted through the same solid correspondent banks and directly through Iraqi banks. The third and most important factor is the success of the traveler segment,
which has quickly become accustomed to collecting its dues in foreign currency through payment cards in large amounts at a reduced cost and at an exchange rate of 1320. One dinar for every dollar, plus, without any hassle, the collection of cash dollars through the airports of the Republic of Iraq, in the amount of $3,000 at the official exchange rate for each traveler per month, provided they carry an electronic payment card, whether credit, debit, or prepaid, as we mentioned earlier.
In addition to the legal scrutiny that citizens can do without in dealing in dollars on the black market, there are also the risks of the dollar’s extreme volatility against gold, and the tendency of individuals to store their financial surpluses in gold and sovereign government bonds, which are guaranteed to pay and pay attractive semi-annual interest under a successful government program offered to the public, as well as in debt instruments that can be discounted or traded on the local secondary market.
Therefore, all these factors have truly helped reduce demand for the dollar in parallel local markets, without overlooking the role played by hypermarkets in a defensive and price stability policy that has disrupted the role of the parallel market and its price impact on consumer prices and the stability of the competitive market throughout the country. This is a successful experiment that has absorbed the fluctuations of the black market to maintain the stability of living standards, as was the case in the past. This is a successful aspect of the success of the trade policy in our country today. Let’s not forget the rush to buy gold at very high costs at the peak of the gold asset cycle or its highest price levels, replacing the purchase of local dollars, amid veiled, unconfirmed threats circulating on the street that the Federal Reserve will write off generations of cash dollars for reasons that conflict with the interests and politics of the United States.
"THE DOLLAR'S EXCHANGE RATE IS STABILIZING TOWARDS ITS TARGET: ADAPTATION OR ADJUSTMENT?"
(Full article in the articles section) "It became clear in the period from last April until this May that the dollar exchange rate in
Iraq began to stabilize, declining towards the (official) target level.
H00 1 Monetary policy raises the value of the dinar and reduces reliance on the parallel market.
The Iraqi dinar has recently recorded strong performance against the dollar, driven by a series of monetary measures adopted by the Central Bank, which have contributed to reducing demand for hard currency in the parallel market and
enhancing the confidence of traders in official channels.
When will the parallel market dollar rate equal the official CBI rate of the dinar? As investors
we need to relax and let the CBI reforms play out. It is just a matter of time. There are lots of "opinions" as to the cause of the rise of the dinar. The fact is it is a "well planned" set of
A NEW DIGITAL GATEWAY: IRAQ LAUNCHES FIRST UNIFIED TELECOM TRANSIT ROUTE
Iraq has signed a strategic transit agreement with DIL Technology, a Kurdish-licensed firm, to enable seamless data flow across its territory.
The deal, finalized on Thursday by the Ministry of Communications, marks the first time Iraq presents a unified telecom front to international companies. It streamlines the process of transmitting data through the country, eliminating the need for companies to negotiate separately with federal and Kurdish entities.
Hayam Al-Yasiri, the Minister of Communications, said the agreement boosts Iraq’s potential as a secure and efficient alternative to unstable maritime routes, especially amid rising concerns from global telecom providers over regional disruptions.
The newly integrated corridor stretches from the southern port of Al-Faw to the northern border at Ibrahim Khalil border crossing, forming a continuous fiber-optic network under centralized oversight.
The agreement, according to Al-Yasiri, not only enhances Iraq’s appeal to international partners but also supports long-term revenue generation and digital sovereignty.
DIL Technology, which maintains infrastructure across Iraq’s border crossings, will serve as the technical facilitator under the federal ministry’s authority.
Comment: Rumor is - Iraq is exchanging dollar-for-dollar on the Dinar in country.
MarkZ: There is quite a bit of news mentioning parity , zeros dropping and possibly 1 to 1 rates. I still believe it's going to be higher – but I love hearing these conversations. But if all I got was a buck rate…I would be happy and gone.
[via PDK] Article: “Swift and the Federal Reserve put Iraq at the mercy of the global economy” this points out that Iraq is now “International”
OIL DOESN’T FEED THE POOR: WHERE DOES IRAQ’S WEALTH GO?!
In a country with one of the world’s largest oil reserves, scenes of destitution and poverty are still strongly present in the streets and working-class neighborhoods. Iraq, with its vast wealth, is powerless to address the dilemma of poverty, which now affects the lives of millions of citizens. Official statistics indicate that more than a quarter of the population lives below the poverty line. As economic and political crises worsen, the roots of this phenomenon deepen, transforming from a social problem into a real threat to societal stability.
According to a 2024 report by the Iraqi Ministry of Planning, the poverty rate reached approximately 25% nationwide, with higher rates recorded in the southern governorates and conflict-affected areas. In Muthanna Governorate, for example, the rate exceeded 50%, reflecting the magnitude of the economic gap between Iraq’s various regions.
The spread of poverty is attributed to several factors, most notably: high unemployment among young people, a lack of development projects, deteriorating infrastructure, and financial and administrative corruption that has depleted public budgets without affecting the lives of ordinary citizens. The absence of a clear strategy for wealth distribution has deprived large segments of their basic rights to education, healthcare, and adequate housing.
Babylon of Civilization… At the forefront of poverty
in Babylon Governorate, the cradle of civilization and home to the world’s first law stele, Minister of Labor and Social Affairs Ahmed Al-Asadi announced during a joint press conference with Babylon Governor Adnan Fayhan that the governorate has the second-highest poverty rate in Iraq.
This statement sparked a wave of anger against the government and Prime Minister Mohammed Shia al-Sudani’s development plans, especially with Babylon’s inclusion on the World Heritage List, raising questions about development priorities and wealth management.
The Voice of the Poor… A Cry in the Face of Silence
“Umm Ali,” a widow living in a slum in Baghdad, told Video News Agency: “We live on whatever God provides. My children left school to help me collect empty cans from the street. No one asks about us, and the government doesn’t see us.”
Despite government initiatives such as the social safety net and food basket distribution, experts believe these solutions are temporary and insufficient unless accompanied by real economic reforms that create job opportunities and boost local production.
Umm Hussein, a widow and mother of four, described her suffering to the Video News Agency, saying: “After my husband’s death, I have no one left to support me. I rely on the social welfare salary, but it is sometimes delayed and sometimes not fully disbursed. I am forced to work cleaning houses to cover school expenses and food.”
Poverty is not just numbers… but a daily pain
. Poverty in Iraq is not just numbers in official reports; it is a daily story experienced by millions in silence and pain. As the challenges mount, there remains an urgent need for a serious stance from the state and society to rescue those drowning in the quagmire of poverty and pave the way for a more just and equitable future.
🇮🇶 OIL PORTS, DOLLARS & DINARS: IRAQ QUIETLY MOVES ON THE GLOBAL CHESSBOARD 🌍💰
Iraq's seaports just clocked $215.3M in Q1 2025 revenue
Khor Al-Zubair alone pushed out 207 tankers—the crude is flowing
But here’s the kicker: Revenues are dual reported in USD & IQD
Why? Because currency leverage matters in a petrodollar world unraveling
IQD now at 1,320 per USD, inching under pressure—watch the demand side
Grand Faw port set to open in 2026 = Iraq’s next major play in regional trade
Geopolitical risk? Always. But Iraq’s looking beyond war—it’s looking at trade routes
♟️ DECODE: When you report in both currencies, you’re not just showing balance sheets—
you’re telegraphing monetary posture. Iraq’s oil is still king, but its ports are becoming the crown.
⚠️ Watch the Dinar. When shipping lanes stabilize, currencies often follow.
Iraq’s seaports generate +$215M in revenue in 2025 Q1
Shafaq News/ Iraq’s seaports generated over 314 billion Iraqi dinars in revenue during the first quarter of 2025, the General Company for Ports of Iraq announced on Monday.
Director General Farhan Al-Fartousi stated that total earnings from January through March reached 314.33B IQD (about $215.3M), with monthly revenues of 109.26B IQD in January ($74.6M), 98.73B IQD in February ($67.4M), and 106.33B IQD in March ($73M), crediting the gains to robust activity at major ports, including North and South Umm Qasr, Khor Al-Zubair, Abu Flous, and various oil export terminals.
“These figures reflect the impact of our ongoing development strategy to modernize maritime trade infrastructure,” Al-Fartousi remarked, highlighting enhanced cargo handling capacity, upgraded logistics systems, and expanded port facilities as key contributors.
He added that the company remains committed to its broader expansion agenda, which includes modernizing berths, enlarging cargo storage areas, and implementing digital platforms to streamline customs and clearance procedures. “Our broader goal is to strengthen Iraq’s position on the regional and global maritime transport map.”
AL-NUSAIRI: OUR DINAR CONTINUES TO RECOVER UNTIL IT REACHES THE OFFICIAL PRICE.
Economic and banking advisor Samir Al-Nusairi confirmed on Sunday that the Iraqi dinar has been gradually recovering for several weeks due to internal and external reasons that have directly impacted controlling fluctuations in the US dollar exchange rate, regardless of the many reasons that led to its decline and its reaching 10 cents, after the difference between the official and parallel rates had been 20 cents for a long period.
Al-Nusairi pointed out that the main reason for the recovery is the reform policies of the Central Bank and the government in reforming the processes of regulating foreign trade financing, compliance with international standards, and regularity in the global financial system, as well as the new mechanisms for foreign transfers to secure imports and cover them in US dollars and other currencies by dealing directly with correspondent banks through more than 20 Iraqi banks that have opened accounts and banking relationships with these banks.
(Yes, getting off the sanctioned mode of the currency auctions process into regular banking practices like the rest of the world conducts. They are normalizing their financial system)
The Central Bank also succeeded in securing and providing 95% of the demand for the dollar at the official price and covering the needs of citizens for cash dollars and distributing it with transparency, fairness, and strict monitoring, which contributed to reducing the practices of speculators in the informal market.
(The other 5% is going to be completed by June and is not underway as we read about the success and results of doing this in other articles today.)
He added to the important role of the government in implementing its strategy in financial and banking reform, especially the implementation of paragraphs (1-7) included in the government program, in addition to removing opportunities for speculators to manipulate the exchange rate according to administrative, supervisory, and economic policies.
Al-Nusairi bet on the Iraqi dinar’s continued recovery through 2025, following the completion of the banking reform project’s objectives and the Central Bank of Iraq’s third strategy. He also noted that the government will continue implementing its reform and investment programs, attracting more foreign and Arab investments to the country, which have exceeded $88 billion, completing the development path, investing in gas, developing oil projects, and supporting the private industrial sector.
Al-Nusairi concluded his remarks by praising the programs and measures adopted by the Central Bank, which contributed to reducing inflation to 2.8% and maintaining the general price level, which is one of the objectives of monetary policy.
Article quote: "Iran...Removing 4 zeros from the national currency is one of the key measures included in the action plan." Now watch, you're going to have numbers different people on the internet saying, 'it's a LOP.'
If you believe the United States Treasury and the World Bank and the Bank of International Settlements have worked for 21 years to erase the value of the currency? You have to be kidding me..
.Lopping a currency isn't part of a current reform program. It's destroying value.That's not what we're talking about here. We have two really rich countries ...The toman/rial is far less valued than the Iraq dinar...I think this is good.
IRAQI PRESIDENT AND CBI GOVERNOR DISCUSS ECONOMIC REFORMS
President Abdul Latif Jamal Rashid and Governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, met at Baghdad Palace to discuss economic reforms aimed at strengthening Iraq’s financial sector and fostering sustainable growth.
They emphasized the importance of modernizing the banking system, stabilizing the market, and creating a robust financial framework to attract investment and support development.
Full statement from the Office of the Iraqi President:
President Abdul Latif Jamal Rashid met with Central Bank Governor Ali Al-Alaq at Baghdad Palace for a discussion on comprehensive economic reforms designed to strengthen Iraq’s financial sector and promote sustainable economic growth. The meeting focused on the Central Bank’s ongoing efforts to modernize the banking system, address current economic challenges and stabilize the local market. They agreed on the need for a robust financial framework to drive sustainable development and long-term growth.
“As we move forward, a strong financial policy framework will be key to unlocking Iraq’s economic potential,” President Rashid stated. “By fostering a supportive environment for the private sector and leveraging our stability, we can attract investment, generate employment and build a more prosperous future for all Iraqis.”
Governor Al-Alaq expressed his appreciation for the President’s leadership and reaffirmed the Central Bank’s commitment to enhancing financial stability, reforming fiscal policy and supporting national development goals.
The meeting highlighted the importance of continued cooperation between the government and the Central Bank in driving Iraq’s economic transformation and ensuring prosperity for its people.
FIREFLY:Mr. Sammy says, think about the importance of this weekend, all the meeting that are being held between Alaq and our President of Iraq.
It is at the palace...Alaq is the trigger man
for the rate and he ain't just talking to him about a program rate of 1310...We know the majority of the meeting was held on the monetary reform success.
FRANK: This meeting was very significant...The fact that Alaq and Sudani are also at this meeting with the IMF...
The IMF gives central banks permission to lift the value or change the value for their currency. These are exciting meetings that lead to only one conclusion..