DINAR REVALUATION : BLACK MARKET IN IRAQ IN TROUBLE!!
Dollar-dinar exchange rate expected to hold steady in Iraq
Shafaq News/ The exchange rate of the US dollar against the Iraqi dinar is expected to stabilize between 140,000 and 143,000 IQD per $100, according to Iraqi economic expert Mohammed al-Hassani.
Speaking to Shafaq News, al-Hassani said the relative stabilization in Iraq’s parallel market is driven by monetary policies implemented by the Central Bank of Iraq (CBI) and ongoing domestic market contraction, which has increased dollar supply amid weakened demand.
“The current range is likely to hold for a while due to these combined factors,” he noted.
However, Al-Hassani pointed out that a return to the official exchange rate set by CBI remains unlikely in the near term, citing continued instability in Iraq’s market conditions.
The US dollar has seen a gradual decline in recent weeks. As of Monday, it traded at 142,500 IQD per $100 on local currency exchanges.
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. This improvement comes amid ongoing government efforts to consolidate financial stability and stimulate business activity through effective monetary instruments and transparent and direct financing mechanisms.
Deputy Governor of the Central Bank of Kuwait, Dr. Ammar Hamad, confirmed to Al-Sabah that this increase reflects the success of the monetary policy pursued by the bank in reducing reliance on the parallel market and providing safe and transparent sources of financing for foreign trade. He explained that this policy has enabled the commercial family to obtain dollars through official channels that adhere to international standards, without having to resort to the unregulated market.
Hamad noted that the Central Bank continues to work toward consolidating the local banking system and raising its operational efficiency to levels consistent with international banking standards, making it a fundamental pillar in driving economic development in Iraq. He added that the bank is adopting advanced mechanisms that enable banks to offer diverse banking products that support various economic sectors and facilitate financing and cash flow operations.
For his part, the Prime Minister’s Advisor for Financial Affairs, Dr. Mazhar Mohammed Salih, explained that a number of factors contributed to strengthening the value of the dinar, most notably the weak demand for the dollar in the parallel market, as a result of the Central Bank’s policies regarding financing foreign trade for the private sector. He explained that the bank strengthens Iraqi banks’ dollar balances through their correspondents abroad, especially banks with a high credit rating (AAA), which speeds up the execution of international transfers and reduces the need for dollars in the local market. He also indicated that the move towards using alternative currencies such as the euro, yuan, dirham, and lira in banking transactions has helped reduce excessive reliance on the dollar.
(Getting ready to change the peg from the sole peg to the US dollar to a basket of currencies. Get ready! 😊)
Saleh also noted that enabling small businesses to access financing sources directly through Iraqi banks, without costly intermediaries, has helped reduce operating costs and improved commercial efficiency, as this segment represents approximately 60% of private sector trade. He added that travelers can now easily obtain their foreign currency dues via payment cards at a subsidized exchange rate of 1,320 dinars to the dollar, in addition to the ability to receive dollars in cash at Iraqi airports, which has eased pressure on the parallel market.
In the same context, economic expert Nazir Al-Saadi emphasized that the money transfer services provided by the Central Bank have become safer and more effective, which has prompted business families to move away from the parallel market, which is characterized by significant risks and high costs. He explained that relying on official transfers not only ensures the safety of transactions, but also reduces the final cost of imports, which is positively reflected in the prices offered to consumers. He added that random transfers from the parallel market often caused losses to importers due to failure to implement them or due to price fluctuations, while the Central Bank mechanism provides a stable financial system that preserves the value of the currency and reduces Opportunities for manipulation.
Reliable sources confirm that money has already begun to circulate discreetly through the global network.
On Mon, 5 May, bondholders received liquidity under strict non-disclosure agreements (NDAs). Meanwhile, the dinar and the dong are being traded on Middle Eastern corridors, in an undisclosed but very real manner.
Mon. 12 May marked the ignition point. From this moment on, the Quantum Financial System begins synchronization. Layer Tier 4B notifications (we, the Internet Group) are ready. Everything is set. The channels are secure. The next step is delivery.
The following events are expected betweenMon, 12 May 12 & Wed, 14 May: – Activation of the Emergency Broadcast System on phones – Direct access via email or portal with instructions to schedule an exchange –
Confirmation discreetly posted to select VR Intelligence Centers
After notification, you will have 10 days to schedule your appointment and until May 31 to complete it. • Only Redemption Centers can process ZIM bonds • Redemption Centers offer enhanced sovereign rates • Regular bank exchanges will be limited and will yield lower market rates.
All ZIM redemptions end on Saturday, May 31. After this period, ZIM will no longer be eligible and redeemable; only basic currency exchanges will be possible.
This is not speculation. This is the schedule. This is the protocol. The system is live. The movement has begun. The silence is intentional. Prepare calmly. Observe carefully.
From here everything accelerates. Your time is approaching. Instructions will come to you.
In response to currency pressures the State Bank of Vietnam or SBV has adopted a flexible monetary policy to maintain economic stability.
The central bank has intervened in the foreign exchange market by selling foreign currencies managing liquidity...
Additionally the SBV has shifted from a fixed to a floating exchange rate mechanism allowing the dong to fluctuate within a controlled range to better absorb external shocks. We can only hope the IQD will join the float option sooner rather than later.
The Minister of Finance participates in the annual spring meetings of the World Bank Group and the International Monetary Fund.
4/26/2025
Baghdad /
Minister of Finance Taif Sami Mohammed, Governor of the Central Bank of Iraq Ali Al-Alaq, and the accompanying delegation participated in the annual spring meetings of the World Bank Group and the International Monetary Fund, held from April 20 to 23, 2025 in Washington, to discuss global economic challenges, economic development, financial stability and other related issues, in addition to plenary sessions, seminars and side consultations. A statement by the Ministry of Finance said: "The Minister began her participation in the first meeting with the Executive Director of the World Bank,
Abdulaziz Al-Mulla, and discussed the economic situation in Iraq and the role of the World Bank in supporting Iraq in its reform programs, especially in the issues of maximizing revenues, reducing expenditures, digitization, electronic systems, infrastructure projects, energy and the environment." She also met with Hella Sheikh Rouho, Regional Vice President of the International Finance Corporation (IFC), and her accompanying delegation, and discussed with her the most important obstacles to investment in Iraq and ways to address them, as well as the most important projects supervised by this institution in Iraq in the transportation, energy and international trade financing sectors. She explained that the institution can support projects of the Iraq Development Fund. The Deputy Chairman of the Foundation also emphasized the support of the private sector and its projects, as well as the agricultural and industrial sectors in Iraq. The delegation, headed by her, held a high-level meeting with the World Bank Vice President for the Middle East, Othman Dawani. The meeting discussed the portfolio of projects funded by the World Bank, particularly the railway project in Iraq.It was agreed to review this portfolio to follow up on project implementation, identify work obstacles, and find solutions for their implementation and completion within the specified timeframe. The meeting also discussed the government's priorities for future projects, which the World Bank can support, with regard to renewable energy, waste management, and transportation projects, especially the metro, airports, and railways. The meeting also discussed the issue of human development in Iraq, which is a government priority, to be included in the World Bank's plans to allocate support and launch future projects in the education, health, employment, and social protection sectors. The statement added: "The Minister, along with the Governor of the Central Bank, attended the ministerial meeting chaired by the Managing Director of the International Monetary Fund, Kristalina Gurevichi, and attended by the Ministers of Finance and Governors of the IMF member countries. The discussions focused on the global economic situation, the increasing uncertainty and its economic impacts at the local and global levels, addressing challenges and measures to enhance resilience, identifying strategies to maintain the macroeconomy and manage debt sustainability, in addition to focusing on exchanging visions and experiences regarding economic reforms, enhancing the performance of government institutions, supporting and strengthening the private sector, and opening the way for them to be at the forefront of sustaining the economic resilience of the countries of the region.
The Iraqi delegation's agenda also included participation in the meeting held with the Managing Director of the International Monetary Fund, Dr. Mohamed Maait, during which the spotlight was placed on specific reforms to improve the performance of the financial sector in Iraq, and sharing updates between the two sides through activating areas of partnership with the Fund.
During the meetings, Finance Minister Taif Sami held a coordination meeting with the Head of the International Monetary Fund (IMF) Mission to Iraq, Jean-Jacques Killaume. The meeting addressed the prospects for Iraqi economic growth through the government's reform program aimed at strengthening the oil and non-oil sectors, and how to maintain economic stability in Iraq in light of the global economic conditions.
She also met with the Director of Technical and Financial Affairs and her technical team at the IMF, responsible for providing technical support and expertise to the Ministry of Finance. The meeting discussed steps to provide technical support to the General Tax Authority and the General Customs Authority regarding the electronic automation of their systems and reviewing amendments to their laws. Sami expressed her readiness to provide technical support and training on these systems for customs and tax employees. The meeting also discussed completing the requirements for the single treasury account and reviewing the procedures implemented by the Ministry of Finance in relation to this program.
In a related context, the delegation held a meeting with Jihad Azour, Director of the IMF's Middle East and Asia Department, where they discussed a range of economic issues and the most prominent financial policy forecasts.
For his part, the Regional Representative stressed the Fund's commitment to supporting all financial, banking, and monetary reform programs adopted by the Iraqi government.