💵 Dollar Jumps in Baghdad Amid Lockdown & Ministry Clarifies Funds Controversy 🔍🇮🇶
🔹 Key Highlights
📈 Dollar Exchange Rate Rises in Baghdad As Sunday evening markets closed, the USD climbed sharply against the Iraqi dinar:
141,900 IQD per $100 on Al-Kifah and Al-Harithiya exchanges, up from 141,200 IQD earlier in the day.
Exchange shops sold at 143,000 IQD and bought at 141,000 IQD per $100. Market watchers link the spike to lockdown-related economic pressure and reduced liquidity.
🏦 Social Welfare Fund Controversy Sparks Clarification Statements by Labor Minister Ahmed Al-Asadi about withdrawing
2.5 trillion dinars caused confusion — but the Ministry quickly clarified:
His comments referred to future financing plans using investment returns and temporary bank liquidity, notmissing funds.
The Ministry stressed that all beneficiary rights are fully protected, documented, and backed by official correspondence from Al-Rafidain Bank.
📑 Finance Ministry: No Withdrawals — Only a Temporary Freeze The Ministry of Finance confirmed:
No funds were withdrawn.
The account was temporarily frozen, consistent with Social Protection Law No. 11 (2014).
Some recovered smart-card amounts are still unchanged in the account.
The Ministry of Labor had not properly reconciled balances with the bank.
🔍 Audit Findings & Oversight The Federal Financial Control Bureau reported:
Accounts were fully audited.
Some uses occurred outside the account’s intended purpose, but not by the Ministry of Labor.
All transferred and recovered amounts remain in place, with a request for deeper revenue analysis.
All rights are preserved according to official records.
🏛️ Rafidain Bank’s Official Numbers
Social Protection Network Account: 2.495 trillion IQD
Social Protection Authority Fund: 390 billion IQD The bank confirmed all balances are fully available, with no shortages, withdrawals, or investment requests.
🗣️ Public Reaction Tweets and local analysts say the minister’s remarks triggered media confusion, noting:
It was likely a misunderstanding of “temporary liquidity”, not lost funds.
Others believe it highlights the need for stronger financial and investment reforms within the Social Welfare Fund. Oversight agencies reaffirm ongoing transparency and protections for citizens’ money.
✨ Sudani Drops a Major Announcement Iraq will introduce a new currency mechanism starting December 1, 2025, signaling strategic changes to the Iraqi dinar. He also noted that the Vietnamese dong is moving in a similar direction, with both nations aligning more closely with BRICS-style monetary strategies, gold-reserve expansion, and reduced dependency on the U.S. dollar.
✨ Global Waves & U.S. Influence Boots-on-the-ground reports mention that President Trump’s policies are affecting global currencies, adding momentum to Iraq’s economic shift.
✨ “Historic Financial Transformation” on the Horizon Sudani didn’t announce a specific revaluation date but emphasized that all foundational work is complete for what he called a historic financial transformation.
✨ CBI Speaks Out — Full Independence Confirmed A televised speaker stressed that the Central Bank of Iraq is completely independent, not tied to government cycles or politics. ➡️ This means the CBI can adjust the exchange rate whenever it chooses — no laws or new government required.
✨
Clearing the Rumors Frank highlights that the government and media are reminding citizens who truly holds the power to “pull the trigger” on any rate change: the CBI, not political chatter or rumors.
FIREFLY:Sudani made an announcement saying Iraq is introducing a new mechanism for their currency starting on December 1, 2025.
This involves some strategic shifts in the Iraqi dinar and he mentioned the Vietnamese dong is doing something similar...It's all about currency revaluation aligning with global economic players like the BRICS nations and boosting gold reserves and reducing reliance on the US dollar. Your president Trump is affecting every country, every currency.
FRANK: Well gooood morning Iraq! Good for you, Sudani. You grew a set, didn't you... OMAR: Sudani stopped short of declaring a formal revaluation date but he emphasized the groundwork is fully in place for a "historic making financial transformation."
FIREFLY:We have a speaker on television and he's saying the CBI is independent from the government and the CBI doesn't have to wait for any new government or any laws. CBI is not political so CBI can change the rate any time they desire.
FRANK: Why would you have to say that? Well, they want the citizens to know
who's going to pull the trigger, not to pay attention to the rumors...Everyone knows that but I guess it's a good time to bring that out because Sudani...is trying to put out all those lies and rumors. He's using the media to help him.
16th July 2025 in Iraq Banking & Finance News, Politics
By John Lee.
The International Monetary Fund (IMF) has issued a brief explainer on Iraq’s exchange rate arrangement. As part of a follow-up to last week’s report on the state of the Iraqi economy, the IMF clarified as follows:
“Exchange Rate Arrangement
“Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy.
“Effective February 8, 2023, the official exchange rate was set at ID 1,320 according to the closing prices of the daily bulletin of gold & main currencies published on the CBI website (www.cbi.iq).
“There has been a change to Iraq’s exchange system since the last Article IV Consultation. Iraq continues to avail itself of the transitional arrangements under Article XIV, Section 2 but no longer maintains any restrictions under this provision. Iraq does not maintain any current account exchange restrictions or MCPs [Managed Currency Pegs]. Starting January 2025, all international transactions have been routed through commercial banks via their correspondent banking relationships (CBRs).
“The Central Bank of Iraq (CBI) replenishes these balances weekly based on foreign exchange demand and conducts audits to ensure that the allocated funds are used in compliance with AML/CFT regulations. Private banks are also encouraged to broaden their CBR networks, particularly with non-U.S. financial institutions.”
🔥 “Iraq on the World Stage: Is Global Integration Imminent?” 🇮🇶✨
⭐ Highlights
Jeff:
The Newsweek cover “Make Iraq Great Again” is being interpreted as Iraq’s formal, global-stage announcement that it is preparing to re-enter the international financial world. 🌍
The article outlines the challenges Iraq has overcome to regain economic and political stability—positioning itself for international integration.
Jeff emphasizes this as a major signal that Iraq is “very close” to going international. 🚀
Blondie:
For those planning future currency exchanges, Blondie suggests learning the difference between bank accounts (FDIC)
That Newsweek magazine about 'Make Iraq Great Again', was Iraq announcing on a world stage how they're about to go international. That was an international announcement by the country of Iraq in Newsweek magazine how they're about to...jump back into the international world...It's important for you to understand what's in this edition of this magazine
...Iraq got back on the world stage to announce all the hurdles and challenges they had to go through to achieve stability...This is Iraq's formal announcement on the world stage of Newsweek. They're announcing they're going international and very close to doing it..
Blondie
Depending on the value of your exchange in $USD, you may want to consider having your bank (if you go to a bank) place your funds in a BROKERAGE account instead of a bank account (you'd need to open it separately).
Why?
Because brokerage accounts are insured by SIPC not FDIC. FDIC (for bank money) only insures up to $250K ($500K for joint accounts) whereas SIPC (for investment accounts) insures MUCH (much!) more. Coverage for both comes along with the account. Talk to your advisor about the differences.
Pimpy
If you remember back, I tried to explain to people things we need to look for before the Iraqi dinar could increase in value. I said they have to maintain a very low inflation rate. Which they're doing. They have to find non-oil revenue, which they're doing.
I said they had to have stability in the county, stability in politics. Sudani has definitely made it real stable there in the country. He's managed to avoid a lot of conflict thank goodness, but in politics, it's still a mess.
🌟 “Iraq Signals Major Currency Shift: New Exchange Rate Mechanism Set for December 1, 2025” 🌟
✨ HIGHLIGHTS SUMMARY
🇮🇶 Economic momentum continues: Iraq is entering a phase of dynamic growth and implementing medium-term financial plans to sustain vital projects, according to economic advisor Mazhar Muhammad Saleh.
🗓️ December 1, 2025: Iraq is reportedly set to implement a new currency mechanism, marking a historic shift in how the Iraqi dinar’s exchange rate is determined.
💱 Exchange rate arrangement explained:
The IMF describes Iraq’s system as a conventional peg arrangement with the Central Bank of Iraq (CBI) controlling policy.
The “new mechanism” suggests a move away from the sole USD peg toward a basket of currencies, potentially creating a new dinar rate reflecting real assets and multiple currencies.
🪙 Implications for the dinar:
The basket peg could support historical rates of $3.22–$4.25, not the current 1320 IQD/USD rate.
This aligns with CBI plans to remove three zeros from the currency, gradually modernizing and strengthening Iraq’s financial system.
📊 Planned currency reform:
Dr. Subhi Jabara reports that the zero-removal project is under active development, with simulations and careful planning to ensure stability while unlocking the dinar’s potential.
🌟 Positive outlook:
All signs point to Iraq moving forward with removing zeros and transitioning to a new currency peg, potentially followed by full reinstatement to FOREX.
🙏 Broader hope:
These reforms could signal economic prosperity for Iraq and investors, while prayers are encouraged for Iraq’s people and future growth.
Meanwhile Iraq keeps moving ahead and we see yet more progress if we study the articles titled:
“IRAQ IS ENTERING A PHASE OF DYNAMIC ECONOMIC GROWTH AND INVESTMENT OPPORTUNITIES”
“GOVERNMENT ADVISOR: MEDIUM-TERM FINANCIAL PLAN TO ENSURE THE SUSTAINABILITY OF VITAL PROJECTS”
Mazhar Muhammad Saleh, the economic advisor to the Prime Minister, confirmed that the government is capable of managing the 2026 fiscal year even if the federal general budget law is not approved.
Did Iraq Just Give Us A Date?
I want to reference the article titled “IRAQ IS SET TO IMPLEMENT A NEW CURRENCY
MECHANISM ON DECEMBER 1, 2025” in today’s article section.
To fully analyze this article let’s first learn better what an ‘exchange rate arrangement’ is, as it will better help understand this article and as it applies to the Iraqi dinar. So, I will refer to a recent July 2025 article posted on the IMF website explaining it. Why did they post this in July of this year when this arrangement has been ongoing since 2003? An exchange rate “mechanism” is not a new exchange rate but a mechanism to determining the exchange rate of a currency. Get it? Are you listening Frank26? It can certainly lead to a new rate for the Iraqi dinar.
So here the IMF EXPLAINS IRAQ’S EXCHANGE RATE ARRANGEMENT in a16th July 2025 in Iraq Banking & Finance News, Politics article by John Lee.
“The International Monetary Fund (IMF) has issued a brief explainer on Iraq’s exchange rate arrangement. As part of a follow-up to last week’s report on the state of the Iraqi economy, the IMF clarified as follows:
Exchange Rate Arrangement
“Iraq’s de jure and de facto exchange rate arrangements are classified as a conventional peg arrangement. The Central Bank Law gives the Board of the Central Bank of Iraq (CBI) the authority to formulate exchange rate policy.”
I have been telling everyone about this de jure and de facto exchange rate arrangement although I may have not called it that. We know today it is a sole peg to the U.S.Dollar. So, here is the clincher of today’s news. If Iraq is set to implement a new currency mechanism than it must vary from the de facto peg to the U.S. or it wouldn’t be a “new” mechanism, would it? This old mechanism has been in place for over 20 years. Yes, they are telling us they are finally moving all the way off the sanctions mode and going to the basket of currencies for a new peg, a new exchange rate arrangement. Have I not been telling everyone about this for over a decade? Now we are going to see it, but when?
Now remember this and this is really important. If they move to a basket of currencies for the new peg don’t you think the rate of the dinar will reflect a new rate based on the true assets but also on the other currencies of the basket. Each currency in the basket supports the others. This is how they will get the $3.22 -$4.25 historical rate they keep talking about. They are NOT going to FOREX with a 1320 rate. Get it! They are not lopping the dinar. Get it!
Oh….this is the juicy part of today’s news. They are telling us the exchange rate mechanism is due to change on December 1, 2025. Really? Yes, their words not mine. Remember this. I am not making up this news. Can this be true? This news fully supports what my CBI contact has been telling us and all these other recent articles on removing the zeros and moving to a new peg. Remember that for the past 20 years the CBI seldom talked about the new basket of currencies for the dinar. Just recently they have taken this turn and are talking more and more about it. Could this also be part of the educational process for the citizens?
So, I tried to get more information from my CBI contact to confirm this new article and all she would say is “it speaks for itself”.
Please go also take another peek again at the article written by Dr. Subhi Jabara again. It is titled “THE IRAQI DINAR WITHOUT ZEROS: THE CENTRAL BANK OF IRAQ LAUNCHES A HISTORIC REFORM.” It is found in the November 18thNewsletter again. Remember what it said and I quote–
“This ambitious project aims to rename the Iraqi dinar by removing three zeros from its nominal value to better reflect the country’s growing economic strength. This move, which has been the subject of rumors for years, is currently under active development, with comprehensive studies and simulations having been completed. According to the Governor, the process will be gradual and meticulously planned to ensure financial stability while unlocking the currency’s true potential. “
So we must conclude by connecting all the pieces of the news. This recent news is telling me they intend to begin the project to delete the zeros on December 1st. They will have a month complete this stage of the process.
So, again I have to ask you as a reader of this analysis- What do you think is happening? Are they going to move ahead this time with removing the zeros or not? Will the reinstatement follow? Will you be rich?
We must continue our prayers for the Iraqi people and the future of Iraq. Let God’s abundance and prosperity rein down upon that nation.
______________________________
________________________________________
Their words not mine…..No Rumors, No Hype, No Opinions ,,,
🏦 “National Bank of Iraq Upgrades to SWIFT MX: Paving the Way for Digital Dinar & Financial Modernization” 🏦
✨ HIGHLIGHTS SUMMARY
🌐 SWIFT MX Transition Completed: The National Bank of Iraq has fully transitioned from the old MT standard to the MX ISO 20022 global messaging standard, marking a major step in modernizing Iraq’s banking infrastructure.
💻 Technological modernization: This upgrade enables data-rich, structured financial messaging, improving transaction tracking, accuracy, and transparency across all banking operations.
💡 Digital banking readiness: The MX system supports a more integrated, secure, and customer-friendly digital banking experience for both individual and corporate clients.
📊 Strategic significance: According to bank officials, the move aligns with Iraq’s roadmap for financial modernization, global best practices, and future digital initiatives, including the anticipated digital dinar rollout
💵 Hoarded cash collection: Insider notes suggest the National Bank will be key in collecting existing cash stashes, essential for implementing digital currency and financing upcoming 2025–2026 projects.
✅ Smooth implementation: The transition was executed with minimal downtime and no major operational issues, showcasing effective planning, governance, and collaboration with regulatory authorities.
🔍 Global integration: The new system positions Iraq’s banking sector for better compatibility with international standards, enhancing its regional and global financial connectivity.
THE NATIONAL BANK OF IRAQ ANNOUNCES THE COMPLETION OF ITS TRANSITION TO THE NEW GLOBAL STANDARD, SWIFT MX.
(Mnt Goat: Can you remember what my CBI contact told me. That the CBI was going to use this new National Bank for yes, the collection of the stashes and hoards of cash. So, again they have yet another article (see below) about all the hoards of cash that needs to get into the banks. They need this cash to in the banks to roll out the digital dinar and to finance many of these 2026 projects rolled over from 2025. Coincidence both of these articles are in the exact same news stream?)
The National Bank of Iraq announced the completion of its transition to the new global standard SWIFT MX for financial messages, a step that marked a significant milestone in the bank’s technological infrastructure modernization and enhanced readiness for digital transformation.
The bank said in a statement, “The implementation of this transformation comes as part of the bank’s transition from the old MT standard to the MX ISO 20022 model, which is the most advanced, structured and data-rich framework in the global financial messaging sector. The transformation process was carried out across all operational channels with high efficiency and minimal downtime, reflecting the bank’s strong technical readiness, accurate planning, and commitment to providing its services without any significant interruption.”
He pointed out that “this transformation is an advanced step within the strategic roadmap of the National Bank of Iraq to modernize its systems, enhance its compatibility with global best practices, and provide an advanced digital banking experience for its individual and corporate clients.”
The statement quoted Aqeel Ezzedine, Chief Operating Officer and Deputy CEO of the National Bank of Iraq, as saying that “the smooth transition to the MX standard is the result of a robust system of governance, teamwork and careful planning, and represents an important step in modernizing the payments infrastructure and enhancing the reliability and security of banking operations.”
Hani Khalil, head of the transformation department at the National Bank of Iraq, said, according to the statement, that “the completion of this transformation embodies the bank’s commitment to keeping pace with the latest international standards in payment systems, and building a more transparent, integrated and high-quality financial data structure, which enhances customer experience and strengthens the bank’s position within the regional financial system.”
The MX standard enables a more accurate and richer exchange of information in financial messages, with substantial improvements in transaction tracking and identification of parties, supporting global trends towards greater efficiency and transparency in payments.
Since the new system came into effect, the bank has not recorded any significant problems, which confirms the success of the implementation process and the close coordination between the transformation, IT and operations teams, in addition to effective cooperation with partners and regulatory authorities.
