DINAR REVALUATION

Thursday, May 15, 2025

MarkZ: There is quite a bit of news mentioning parity , zeros dropping and possibly 1 to 1 rates

THE 2025 BUDGET SCHEDULES WILL BE FINALIZED BY THE END OF MAY.

THE 2025 BUDGET SCHEDULES WILL BE FINALIZED BY THE END OF MAY.

MP Baqir Al-Saadi stressed that “the existence of 2025 budget schedules is important to ensure project funding and provide financial support for local governments, enabling them to proceed with implementing service projects across all sectors.”

Al-Saadi indicated in a press interview seen by (Al-Masry Al-Youm, Sunday 5/11/2025) that “the 2025 budget schedules will be decided by the end of this May.”

He said, “Despite talk of the possibility of postponing the budget resolution until after the November 2025 elections, there are indications that the budget schedules may be finalized by the end of this month . Thus, after the end of the legislative recess, the parliament will have the opportunity to finalize it or hold extraordinary sessions to discuss and vote on it.”

He explained that “the delay in finalizing these schedules and the Cabinet’s failure to send them to the Parliamentary Finance Committee for review before submitting them to the Parliament Presidency for a vote has negative repercussions on the funding of service projects in ministries and local governments.”

(Kind of weird how they worded this last statement since the Finance Committee is part of Al Sudani’s cabinet. Do these reporters even know how the government is structured?)

MIKE BARA UPDATE

MIKE BARA

I am told Iraq's currency is now gold backed.

I am now hearing Trump’s “big announcement” will be recognition of a Palestinian state.

Not only do I think this is a horrible policy, it has nothing to do with the RV, apparently.

FIREFLY: Exciting meetings that lead to only one conclusion : RV THE IRAQI DINAR!! #iraqidinar

HOARDED WEALTH, FROZEN ECONOMY: IRAQ’S HIDDEN CASH CRISIS DEEPENS

HOARDED WEALTH, FROZEN ECONOMY: IRAQ’S HIDDEN CASH CRISIS DEEPENS

For many Iraqis, banks are not seen as safe havens but as unreliable or even risky institutions. And for countless others, personal experiences of fraud and failed investments have reinforced the instinct to hide money away rather than let it work.

In a country long battered by war, corruption, and economic volatility, a new crisis is quietly suffocating Iraq’s prospects for recovery: the nation’s wealth is being locked away behind household doors.

Recent figures reveal that only 20 trillion Iraqi dinars are in actual market circulation out of a staggering 105 trillion dinars in total monetary volume—a sign that Iraqis are overwhelmingly choosing to hoard their savings at home rather than invest or deposit them. This growing phenomenon not only reflects deep societal mistrust but also poses a formidable obstacle to economic growth.

The roots of this behavior run deep. For many Iraqis, banks are not seen as safe havens but as unreliable or even risky institutions. And for countless others, personal experiences of fraud and failed investments have reinforced the instinct to hide money away rather than let it work.

Ahmad Alaa, a young Iraqi man, shared his own story with Kurdistan24’s correspondent Seif Ali—a cautionary tale that mirrors the fears of many. “After saving a significant amount, I tried investing in the car trade through a partnership. I was defrauded. Even after two years in court, and a confession from the person who stole our money, he walked free,” Alaa said. “After that experience and others like it, people are too scared to invest.”

Ahmad Alaa, a young Iraqi man, shared his own story with Kurdistan24’s correspondent Seif Ali. But fear of fraud is only part of the equation. Experts point to a fragile banking system, unpredictable exchange rates, and mounting economic pressures as factors pushing citizens further into financial isolation.

Economic analyst Arkan Al-Shammari explained to Kurdistan24, “The economic downturn and instability of the dollar discourage citizens from launching small businesses. Even those who want to invest face high operational costs—particularly rent—which make ventures unfeasible from the outset.”

Economic analyst Arkan Al-Shammari talking to Kurdistan24’s correspondent Seif Ali.

With banks offering little in the way of guarantees or incentives, and with Iraq still lacking a secure and modern banking infrastructure, citizens are left with few appealing options for managing their money.

Al-Shammari argued that revamping the financial system and offering substantial incentives could be key to drawing hoarded funds back into the economy. “Without an encouraging banking environment, it’s unrealistic to expect people to trust the system with their life savings,” he said.

The consequences are stark. As Iraq faces pressing needs in reconstruction, job creation, and diversification of its economy, massive reserves of personal wealth remain immobilized—kept in cash, hidden in homes, and denied to the markets and sectors that need them most.

In the absence of sweeping financial reforms, Iraq risks falling further behind in its efforts to build a resilient and modern economy. For now, the country’s future remains shackled not only by visible challenges, but also by the invisible weight of idle cash—locked in fear, distrust, and lost opportunity.

GOLDILOCKS: Iraq is actively working toward implementing ASYCUDAWorld across all its customs sites by mid-2025

GOLDILOCKS:

Iraq is actively working toward implementing ASYCUDAWorld across all its customs sites by mid-2025, as part of a broader effort to modernize customs processes and boost trade efficiency.

The Ministry of Finance is making progress with automating its programs, and is currently implementing the ASYCUDA (Automated System for Customs Data) system within its customs sector. This system aims to modernize customs operations, improve revenue collection, and facilitate trade.

ASYCUDA is a computerized customs management system that covers various foreign trade procedures, including declarations and accounting.

Iraq’s adoption of ASYCUDAWorld at key shipping ports like Umm Qasr and other customs sites is a transformative step toward modernizing its trade infrastructure.

The system is already yielding significant results, such as increased customs revenue and higher import volumes, and is poised to expand nationwide by mid-2025. By aligning with international standards and improving efficiency,

ASYCUDAWorld enables Iraq to strengthen its position in global trade, attract investment, and reduce economic reliance on oil. The sources cited provide robust evidence of the system’s implementation and its positive impact on Iraq’s international trade capabilities.

Yes, many countries are exploring and implementing the use of their own currencies within the banking system to align with evolving international standards and potentially move away from the dominance of the US dollar.

This is happening through the development of Central Bank Digital Currencies (CBDCs) and the increasing use of national currencies in cross-border payments.

It remains to be seen if the dinar will replace the dollar in these shipping port transactions. The current trend would say so, but many geopolitical tensions are still in flux. And, it is too early to tell what is about to happen in Iraq at this time.

Watch the water.

https://www.iraq-businessnews.com/2025/04/02/iraqi-customs-implements-new-measures-to-boost-trade/#:~:text=Iraq's%20General%20Customs%20Authority%20has,reduce%20delays%20and%20streamline%20processes.