The Iraqi Dinar Regains Its Strength Against The Dollar
Thursday, April 24, 2025, 8:20 PM | Economic Number of readings: 64
Baghdad / NINA / The exchange rate of the dollar against the dinar decreased, Thursday evening, in Baghdad and the Kurdistan Region.
The exchange rate in the Al-Kifah and Al-Harithiya stock exchanges in Baghdad reached 144,600 dinars for every 100 dollars. This morning, the dollar recorded 145,200 dinars.
In the local markets in Baghdad, the selling price reached 145,500 dinars for every 100 dollars, and the purchase price was 143,500 dinars.
In Erbil, the dollar price also decreased, with the selling price reaching 145,200 dinars for every 100 dollars, and the purchase price reaching 145,100 dinars for every 100 dollars. /End https://ninanews.com/Website/News/Details?key=1199962
📈 How can the FilsCoin affect the future value of the Iraqi dinar?
The key is how the massive and controlled use of the FilsCoin can stabilize and eventually strengthen the dinar (IQD) against the dollar and other foreign currencies. Here's why:
1. actual de-dollarization
Iraq has started limiting the use of the dollar in domestic transactions as of January 2024.
FilsCoin, being 100% pegged to the dinar, incentivizes the population to use IQD digitally, which:
Increases demand and circulation of the dinar,
Decreases pressure on the Central Bank's dollar reserves,
Strengthens the country's monetary sovereignty.
2. Finer control of monetary policy
With FilsCoin, the Central Bank has full insight into the flow of digital money:
It can detect speculation, capital flight or illicit accumulation quickly.
This allows it to respond more nimbly, for example, by changing rates or restricting conversions if it sees suspicious movements.
More control → more trust → better international perception of the IQD.
3. Greater transparency and stability
Transactions in FilsCoin leave a record. This decreases the informal economy, which is one of the great enemies of monetary stability.
As the economy becomes more formalized:
Tax collection increases,
Governance improves,
Strengthens the credibility of the dinar → potential revaluation.
4. Possible revaluation in the medium term
If Iraq manages to stabilize its economy, control inflation, attract foreign investment and keep its trade balance positive (thanks to oil and now more transparent digital trade), the dinar could:
Increase its nominal value against the dollar,
Or even officially reform itself (such as eliminating zeros or relaunching with a new fixed exchange rate).
Eye: this does not mean it will explode in value overnight, but it is a structural and solid path towards a possible revaluation.
Iraq Stock Exchange to join Tabadul Digital Trading Platform
The Abu Dhabi Securities Exchange (ADX), the UAE's largest financial market, has signed an agreement with the Iraq Stock Exchange and the Iraqi Securities Commission (ISC), paving the way for Iraq to join the regional digital trading platform, Tabadul.
The signing ceremony was held at ADX headquarters on Tuesday.
The agreement follows a preliminary accord announced in January, aimed at enhancing cooperation between the capital markets of Iraq and the UAE. The partnership will focus on technology, innovation, post-trade systems, and the exchange of best practices.
By joining Tabadul, Iraq becomes the platform's ninth member, enabling seamless cross-border trading between Iraqi and Emirati investors and brokers. The platform allows remote market access and supports participation in IPOs across member exchanges, broadening investment horizons.
In recent years, Iraq has made significant progress in the digitization of its banking system, a process that not only aims to modernize the financial infrastructure, but also to strengthen the stability of the Iraqi dinar and reduce dependence on the U.S. dollar.
Progress in banking digitalization in Iraq
The Central Bank of Iraq has implemented several initiatives to modernize the financial sector.
Automation of banking processes: the PS-GatePay solution has been implemented in several banks, enabling the automation of clearing and settlement processes, which improves efficiency and reduces human errors.ProgressSoft
National Payments System (NPS): Launched in 2020, the NPS facilitates electronic fund transfers, bill payments and other financial transactions, promoting financial inclusion and reducing cash dependency .FasterCapital+1FasterCapital+1
Mobile banking and digital payments: Apps such as ZainCash and eFloos have gained popularity, allowing users to make payments and transfers from their cell phones, especially in remote areas .FasterCapital+1FasterCapital+1
Digital identity and blockchain: The Central Bank has launched the National Digital Identity (NDI) project and is exploring the use of blockchain technology to improve transparency and security in financial transactions .
Relationship to the Iraqi dinar
These digital initiatives are closely linked to the Iraqi government's efforts to strengthen the dinar and reduce dependence on the U.S. dollar.
De-dollarization: As of January 1, 2024, Iraq has banned cash withdrawals in dollars, seeking to curb the misuse of its hard currency reserves and promote the use of the dinar in local transactions.
FilsCoin: The launch of FilsCoin, a digital currency backed by the Iraqi dinar and based on blockchain technology, seeks to provide a secure and efficient way for Iraqis to conduct transactions, especially those without access to traditional banking services ..FasterCapital+1FasterCapital+1
Taken together, these advances in banking digitalization not only improve the efficiency of the Iraqi financial system, but also strengthen the position of the dinar in the local economy, reducing dependence on the dollar and promoting greater economic stability.
Translation in Spanish
En los últimos años, Irak ha avanzado significativamente en la digitalización de su sistema bancario, un proceso que no solo busca modernizar la infraestructura financiera, sino también fortalecer la estabilidad del dinar iraquí y reducir la dependencia del dólar estadounidense.
Avances en la digitalización bancaria en Irak
El Banco Central de Irak ha implementado diversas iniciativas para modernizar el sector financiero:
Automatización de procesos bancarios: Se ha implementado la solución PS-GatePay en varios bancos, permitiendo la automatización de procesos de compensación y liquidación, lo que mejora la eficiencia y reduce errores humanos
.ProgressSoft
Sistema Nacional de Pagos (NPS): Lanzado en 2020, el NPS facilita las transferencias electrónicas de fondos, pagos de facturas y otras transacciones financieras, promoviendo la inclusión financiera y reduciendo la dependencia del efectivo .FasterCapital+1FasterCapital+1
Banca móvil y pagos digitales: Aplicaciones como ZainCash y eFloos han ganado popularidad, permitiendo a los usuarios realizar pagos y transferencias desde sus teléfonos móviles, especialmente en áreas remotas .FasterCapital+1FasterCapital+1
Identidad digital y blockchain: El Banco Central ha lanzado el proyecto de Identidad Digital Nacional (NDI) y está explorando el uso de la tecnología blockchain para mejorar la transparencia y seguridad en las transacciones financieras .FasterCapital
Relación con el dinar iraquí
Estas iniciativas digitales están estrechamente vinculadas a los esfuerzos del gobierno iraquí para fortalecer el dinar y reducir la dependencia del dólar estadounidense:
Desdolarización: Desde el 1 de enero de 2024, Irak ha prohibido las retiradas de efectivo en dólares, buscando frenar el uso indebido de sus reservas de divisas fuertes y promover el uso del dinar en transacciones locales .MarketScreener España
FilsCoin: El lanzamiento de FilsCoin, una moneda digital respaldada por el dinar iraquí y basada en tecnología blockchain, busca proporcionar una forma segura y eficiente para que los iraquíes realicen transacciones, especialmente aquellos sin acceso a servicios bancarios tradicionales .FasterCapital+1FasterCapital+1
En conjunto, estos avances en la digitalización bancaria no solo mejoran la eficiencia del sistema financiero iraquí, sino que también refuerzan la posición del dinar en la economía local, reduciendo la dependencia del dólar y promoviendo una mayor estabilidad económica.
Iraq's Ministry of Planning held discussions with representatives of the German Agency for International Cooperation (Deutsche Gesellschaft für Internationale Zusammenarbeit; GIZ) in Iraq to explore cooperation and developmental transformation.
Key areas of focus included a joint international cooperation agreement, the establishment of offices for the German Development Bank (Kreditanstalt für Wiederaufbau; KfW)
and the GIZ in Iraq, and Germany's support for development activities across the country.
Dr. Saher Abdul-Kadhim, Director General of the Department of International Cooperation at the Ministry of Planning, emphasized that the talks aimed to enhance cooperation prospects and expand future bilateral relations.