"AFTER 19 DAYS, A FINANCIAL SHIFT DIRECTLY AFFECTS IRAQIS' POCKETS."
Early July 2025 "Nineteen days separate Iraq from implementing a ban on cash payments in government institutions and adopting all government payments electronically.
This is a "strategic" step to improve governance, reduce corruption, promote economic growth, and promote a cultural shift toward transparency and modernity, according to the Prime Minister's advisor for financial affairs, Salih."
"To this end, it has launched awareness campaigns to encourage the adoption of electronic payment systems and move away from the traditional cash-based culture. Electronic payment card ownership
has reached 45% of adults (approximately 20 million cards), with bank accounts growing." Will the CBI be able to collect these stashes of cash outside the banking system? What about our
dinar also outside the Iraqi banking system? When will the come for ours?
He added, “We’ve given notice to leave and we’ll see what happens.”
He added, “They (Iranians) can’t have a nuclear weapon, very simple. We won’t allow that.” The Pentagon announced on Wednesday that it had authorized the voluntary departure of US military families from several locations within the US Central Command (CENTCOM) area of operations, which includes Iraq and other countries in the Middle East.
(Looks to me like the Iranian nuclear negotiations DID NOT go very well and the middle east is about to explode unless Iran comes back to the table and makes some concessions.)
• Border conflicts and proxy wars, often fueled by Iranian influence, have historically destabilized Iraq’s economy. The liberation diminishes Iranian leverage, which has been a barrier to Iraq’s sovereignty over its economic policies, including currency management.
• International investors are wary of countries with ongoing conflicts. The stabilization of the Ahwaz region signals to global markets that Iraq is moving toward a more secure environment, potentially attracting foreign direct investment (FDI) essential for economic growth and currency strengthening.
• Internally, the liberation reduces sectarian tensions within Iraq, particularly among Sunni populations who may feel marginalized. A more unified domestic front supports coherent economic policy-making, a prerequisite for currency reform.
Why this is huge for Dinar Investors?
The CBI has been working on stabilizing the dinar against the U.S. dollar, which has fluctuated due to economic instability. With Ahwaz’s liberation, the CBI can focus on implementing policies like reducing money supply growth and controlling inflation, both of which are necessary for revaluation.
The stability allows Iraq to allocate more resources to building foreign exchange reserves.
As of early 2025, Iraq’s reserves were reported at approximately $100 billion, but experts suggest a reserve of at least $150 billion is needed for a credible revaluation. The additional oil revenue from a stable Ahwaz region can help reach this threshold.
Joining the Forex market requires adherence to international financial standards, such as those set by the International Monetary Fund (IMF). The geopolitical calm post-liberation enables Iraq to focus on IMF-mandated reforms, including improving transparency in fiscal operations and reducing c********n, which have historically undermined currency credibility.
The dinar must become fully convertible, meaning it can be freely exchanged for other currencies without restrictions. The stability from Ahwaz reduces the risk of capital flight, a common barrier to convertibility. The Forex market requires a currency to have sufficient liquidity, which depends on trade volume and investor interest. A stable Iraq, with increased oil exports and FDI, can enhance dinar liquidity by attracting more international transactions.
The Green Light
The convergence of the “Big Beautiful Bill,” the GENIUS Act, and the settlement of the Ripple case with the SEC, alongside the pairing of XRP with the Iraqi dinar (IQD), creates a compelling scenario for Iraq’s currency revaluation and entry into the Forex market in the near future.
The “Big Beautiful Bill,” being a comprehensive legislative package aimed at economic reform, will provide the legal and financial framework necessary for Iraq to overhaul its monetary policies, including reducing c********n, enhancing transparency, and aligning with international standards as recommended by the IMF.
The GENIUS Act, presumably focusing on technological and financial innovation,
would further support Iraq’s digital infrastructure, crucial for modernizing its banking sector and facilitating electronic currency trading, a prerequisite for Forex integration. The settlement of the Ripple case with the SEC, announced on May 8, 2025, resolves a significant regulatory hurdle for XRP, a cryptocurrency paired with the IQD, potentially stabilizing its value and enhancing its usability in international transactions.
With XRP’s pairing, Iraq could leverage blockchain technology to improve dinar convertibility and liquidity, essential for Forex market entry. Given the timeline next week’s anticipated passage of these bills the stage is set for Iraq to make its move, possibly triggering a revaluation shortly after, as the combination of legislative support, technological advancement, and cryptocurrency stability aligns with the geopolitical and economic stability gained from events like the liberation of Arab Ahwaz. This convergence, while not guaranteed, positions Iraq closer than ever to achieving a revalued dinar, backed by a robust legal, technological, and financial foundation.
PARLIAMENTARY LEGAL COMMITTEE: NO SERIOUS STEPS HAVE BEEN TAKEN TO PASS THE OIL AND GAS LAW YET.
Parliamentary Legal Committee member Dara Sekanyani confirmed on Wednesday that no serious steps have been taken to pass the oil and gas law. He noted that passing the law requires consensus and understanding between the parties, something that has not yet been achieved.
“All parties are talking about the importance of approving and passing the oil and gas law, which was included in the government’s work program and was scheduled to be passed, but no serious steps have been taken to pass it yet,”
He added, “If the oil and gas law is passed, the oil and gas issue between the Kurdistan Regional Government and the federal government will be resolved, and some of the issues between them will be resolved, provided that all parties commit to implementing the law after its passage.”
Article: "Iran criticizes Iraq: We are developing a plan to deal with anyone who chooses neutrality."
Quote: "Iranian Deputy Foreign Minister Majid Takht-Ravanchi held Iraq responsible for Israel's violation of its airspace on Saturday evening, while stressing that Tehran will develop a plan to deal with anyone who chooses to 'remain neutral.'"
