Frank26
Enough is enough. They know. You know. All the conventions and committees that are occurring especially in the Middle East, they know.
The whole group that's coming from Iraq over to Washington DC, they know. You know. You know who really knows?
Iran. That was the problem from day 1...Long before you got interested in the Iraq dinar it's been Iran. That has been the sore thorn in the side of Iraq's economy..
Shafaq News/ On Monday, Iraqi Prime Minister Mohammed Shia al-Sudani and Libyan Presidential Council President Mohamed al-Menfi held a phone call to discuss bilateral relations, al-Sudani’s office announced.
The two leaders exchanged views on regional developments and discussed strengthening coordination in security and economic fields.
Al-Sudani reaffirmed Iraq’s support for Arab integration, describing the recent Baghdad summit as a key step toward launching joint regional initiatives.
“Iraq views joint action as essential to addressing shared political and security challenges,” he stated.
WHAT RECENT MEASURES IRAQ HAS TAKEN TO REINFORCE THE VALUE OF THE IRAQI DINAR?
Iraq has implemented a series of strategic measures in 2025 to strengthen the value of the Iraqi dinar (IQD), improve economic stability and reduce dependence on the US dollar. Below are the key actions taken by the Central Bank of Iraq (CBI) and the Iraqi government:
🏦 Measures of the Central Bank of Iraq (CBI)
1-Reforms in the exchange market and liquidity control
2-The CBI has increased the monetary policy rate from 4% to 7.5% and raised the reserve requirement ratio from 15% to 18%. These actions seek to reduce excessive liquidity and control inflation, thus strengthening the dinar against foreign currencies.
3-Digitization of payments and transition to a cashless economy
4-Digital Payments Regulation No. 2 of 2024 has been implemented, promoting the use of electronic payment systems such as POS cards and digital wallets. This strategy seeks to channel liquidity into official channels, reducing the size of the parallel dollar market and increasing confidence in the dinar.
5-Exploring a Central Bank Digital Currency (CBDC)
The CBI has announced plans to launch a digital version of the dinar, aligning with global financial digitalization trends. This transition aims to improve payment efficiency and reduce the risk of counterfeiting.
6-Strengthening international reserves
Iraq's gold reserves increased by 45.1% in the last quarter of 2024, reaching 17.83 trillion dinars. This increase contributes to economic stability and provides additional support to the dinar.
💼 Measures of the Iraqi government
1-Tax and customs reforms
2-The implementation of the ASYCUDA system has allowed a significant increase in customs revenues, with an increase of more than 59 billion dinars. This improvement in tax collection contributes to greater economic stability and reduces the need for external financing.
3-Dedollarization and strengthening of the local currency
Since January 2024, the CBI has banned cash dollar transactions, promoting the use of the local currency in daily transactions. Additionally, electronic platforms have been established to regulate international transfers, increasing transparency and reducing the risk of illicit activities.
4-Collaboration with international institutions
Iraq has resumed negotiations to join the World Trade Organization (WTO), which could facilitate access to international markets and improve confidence in the Iraqi economy.
📈 Observed results
-The exchange rate of the dinar against the dollar has improved, going from 147,750 to 145,950 dinars per dollar, reflecting greater stability in the foreign exchange market.
-Annual inflation has remained below 3%, indicating an effective and controlled monetary policy.
-Public confidence in the financial system has increased, with greater use of electronic channels for transactions and payments.
These measures reflect Iraq's commitment to the modernization of its economy and the stability of its currency.
Although challenges remain, the reforms implemented to date have shown positive results in terms of strengthening the dinar and economic stability.
Shafaq News/ Iraq used the Arab League summit in Baghdad to reinforce its bid for regional economic integration and foreign investment, a senior official said.
Mudhir Mohammed Salih, economic adviser to Prime Minister Mohammed Shia al-Sudani, described the summit as a “strategic opportunity” to signal Iraq’s political and economic stabilization. “It marked a shift from crisis management to development-focused diplomacy,” he told Shafaq News.
Salih identified the $17 billion Development Road project, a 1,200-kilometer trade corridor linking the Grand Faw Port in southern Iraq to the Turkish border, as a pillar of Iraq’s economic transformation.
He also cited momentum for economic coordination with neighboring states, including Jordan, Egypt, and Iran, calling the summit “a launchpad for cross-border investment dialogue.”
Despite the high-level push, Iraq’s investment performance remains relatively low. According to the World Bank, the country recorded a net foreign direct investment (FDI) outflow of $5.27 billion in 2023, driven by “legal uncertainty and security risks.”
“Iraq is making the right overtures, but talk alone won’t unlock capital,” said Ranj Alaaldin, a fellow at the Middle East Council. “Investors need legal predictability, regulatory enforcement, and protection mechanisms.”
Iraq’s energy sector constraints only add to the issue. More than 50% of electricity generated is lost in transmission, according to the International Monetary Fund (IMF), amid Iraq’s heavy dependency on Iranian electricity imports, a vulnerability heightened by the expiration of US sanctions waivers in early 2025.
“These deficits directly limit industrial productivity and undermine long-term competitiveness,” the IMF noted in its May 2025 review.
While the Arab League summit did help Iraq in its economic project, experts remain skeptical of near-term results, arguing that regional visibility must now be matched by measurable reforms in infrastructure and market regulation.
Militia Man
Article: "The Baghdad summit took place regularly and Iraq regained its leading role"
I like that title because it's leading role. It's regained its place in the regional arena. That's good...
Saudi Arabia, UAE, Qatar, Egypt, every single one of those are trading partners. They're going to have an impact when Iraq does a revaluation of their currency.
They have to have synergy/synchronization...It's going to be a powerful move when Iraq does that [rate change].
🇮🇶 Iraqi Dinar RV: How Iraq’s Salary & Social Spending Stability Supports Future Revaluation 🔹 Key Highlights 1️⃣ Sustainability of S...