TheCentral Bank of Iraq (CBI)has launched its firstNational Financial Inclusion Strategy, covering the period 2025-2029.
The initiative provides an integrated framework aimed at enabling all individuals and businesses to access the financial sector and use appropriate, secure financial services with consumer protection guarantees. The strategy is expected to contribute to both economic and social development.
Governor Ali Mohsen Al-Allaq emphasised the Bank's commitment to advancing financial inclusion domestically and through collaboration with regional and international partners. The strategy was developed in partnership with the World Bank Group, Arab Monetary Fund, Alliance for Financial Inclusion (AFI), and Germany's Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), along with numerous local public and private stakeholders.
Key goals include:
Increasing the percentage of Iraqis with bank accounts
Strengthening consumer protection within the financial sector
Expanding the use of modern digital payment methods
Upgrading infrastructure and regulatory frameworks to support inclusion
Iraqi Dinar Update
Here is my opinion on it. Listen, it's a lot.
This document is not meant to be the gospel. This was a very well done analysis. Nothing more. And I will tell you why I agree with it. Remember, the entire document was never posted. Many people are making final judgments on an excerpt.
Point 1
Specialized systems or telemetry layers within foreign exchange infrastructures often operate behind closed doors, especially for currencies like the IQD, which are heavily controlled by the Central Bank of Iraq (CBI). FX-VU could be an internal designation for a rate management or suppression system used by CBI or its partners, not intended for public disclosure.
Another point overlooks historical context and economic potential. Before the 1991 Gulf War, the IQD was valued at $3.2169 per USD, a rate maintained until sanctions and war devalued it. A $4.8101 rate, while high, is not unprecedented for a resource-rich nation like Iraq, which holds the world’s fifth-largest proven oil reserves (145 billion barrels as of 2023).
The memo’s mention of “suppressed placeholder” rates ($1.310 IQD/USD) versus the “true preloaded value” ($4.8101) mirrors real-world practices where official rates differ from internal targets during revaluation planning. The CBI has a history of managing dual rates (official vs. black market), as seen in 2023 when the official rate was 1,300 IQD/USD, but the parallel market rate hit 1,570 IQD/USD. This discrepancy supports the memo’s claim of suppression layers.
Point 2
Lack of SWIFT, BIS, IMF, or ICE Integration Is Not a Dealbreaker:
If you are a skeptic and have an issue with the highlights the memo’s lack of integration with SWIFT, BIS, IMF, or ICE, suggesting this proves its illegitimacy. However, the IQD is not widely traded on global FOREX markets and is primarily managed by the CBI, which fixes its rate. Integration with these systems would be necessary for public trading, but the memo specifies the rate is in “backend indicators” and “not yet unmasked,” meaning it’s prepped internally, not rolled out globally.
Iraq’s financial system operates under strict controls, with dollars held at the Federal Reserve Bank of New York ($120B in reserves as of 2023). The CBI’s focus has been on de-dollarization and anti-money laundering measures, not global market integration. The memo’s lack of mention of SWIFT or IMF doesn’t negate its claims about an internal revaluation process.
Point 3.
The Memo’s Rate Display Aligns with Insider Practices:
Some are mocking the memo for showing the current rate ($1.310 IQD/USD) as if it’s not hidden intel, since it’s visible on http://XE.com. However, the memo’s point is to contrast the public placeholder rate with the backend $4.8101 rate, which is not publicly visible. This dual-rate strategy is consistent with how central banks manage revaluations to prevent market panic, as seen in Iraq’s 2023 revaluation from 1,460 to 1,300 IQD/USD.
The memo’s screenshot of the ICE listing (bid/ask spread of $0.000759–$0.000767) serves to highlight the suppressed rate, not to leak “hidden intel.” It’s a technical confirmation of the current system state, which an insider would use to validate the revaluation process. Nothing to be tricky about. Again, it was just a point that needed to be made.
Mind you I am only giving you my opinion on the 1st page. So you can imagine how much you do not know about what is going on. I told you all before I would not upload something of this magnitude without having a good reason.
Iraqi Prime Minister Mohammed S. Al-Sudani chaired a meeting on Monday of the High Committee tasked with reassessing and restructuring the boards of directors of state-owned banks and theCentral Bank of Iraq (CBI).
The committee approved several recommendations focused on evaluating board performance as part of a broader programme of banking and financial reform. The Prime Minister emphasised the critical role of these boards in leading strategic direction, ensuring transparency and accountability, and assessing institutional financial risks.
He also called for stronger coordination between the boards, government entities, and the private sector to advance financial and developmental policies that support Iraq's economic growth.
FIREFLY:Television is showing us Iraqi citizens that are protesting in the streets. We have blocked the streets with boring tires. Many folks are mad and don't know what we're doing.
We are all mad over no power, no electricity, the storms blew down some old towers and also protesting about no pay, no guarantee, no HCL for years. You talk about this but you don't give it to us and the government not listening.
FRANK: Give them hell because you've been going through hell. Just don't become violent.
When The Central Bank Abandons Its Basic Duties - Hussein Ismail Al-Taie
May 26, 2025 The Central Bank carries out its basic tasks, which are:
-Issuance of local currency
- Creating monetary balance
However, what is observed in Iraq during this period is that the Central Bank is unable to issue the local currency according to the requirements of the local market and monetary circulation.
The reason is that influential parties are printing and issuing counterfeit local currency in India, as is available from circulating information, converting it to dollars and smuggling it to Iran.
This threatens and prevents the Central Bank from carrying out one of its basic tasks, as flooding the local market with original and counterfeit local currency will result, firstly, in an increase in the monetary mass of the local currency and a decrease in its real value against foreign currency.
Secondly, it will lead to the smuggling of dollars to Iran for the purpose of helping it activate its economic activities in the international trade market.
The result of this process is the inability of the Central Bank to perform its second task, which is to create a balance between the original and counterfeit local currency offered for circulation in the local market and the available foreign currency. This will lead to a decline in the real strength of the local currency.
Therefore, the financial and economic authorities are paralyzed and unable to perform their basic duties in leading the country's economic activity. Professor of International Finance LINK
