Thursday, June 19, 2025
IRAQ NEWS HEADLINES : Currency Reform Still in Progress
IRAQ NEWS HEADLINES
Currency Reform Still in Progress
Iraq’s government is pushing ahead with banking and financial reforms under pressure from international advisors and investors.
Talks about currency redenomination or revaluation of the Iraqi Dinar (IQD) continue, but no official change has occurred yet.
The Central Bank of Iraq (CBI) is working to modernize the banking sector, increase digital transactions, and reduce corruption.
How the Iran-Israel War Could Affect Iraq and the Iraqi Dinar
How the Iran-Israel War Could Affect Iraq and the Iraqi Dinar
The ongoing or potential conflict between Iran and Israel could have serious implications for Iraq, especially in terms of its political stability, economy, and the value of its currency — the Iraqi Dinar (IQD).
Regional Instability:
Iraq is geographically and politically caught between Iran and other U.S.-backed allies in the region. A war involving Iran could spill over into Iraq, either directly through militia activity or indirectly by disrupting borders and trade routes.Iranian Influence in Iraq:
Iran has historically exerted strong influence over certain factions within Iraq, including militias and parts of the government. If Iran becomes deeply engaged in war, it could destabilize Iraq internally, especially if pro-Iranian groups take sides or act independently.Investor Confidence:
Investors tend to avoid countries near war zones or those politically aligned with a warring nation. This reduces foreign investment in Iraq, which is crucial for economic growth and currency stability. Low investor confidence can weaken the Iraqi Dinar.Delays in Economic Reforms :
Iraq has been working on economic reforms, including banking modernization and currency revaluation. Conflict in the region could delay or derail these plans, as security and politics take priority.Oil Market Volatility:
Iraq depends heavily on oil exports. A war in the Middle East could raise oil prices globally, which might benefit Iraq in the short term. However, if Iraqi oil infrastructure is threatened or export routes are blocked, it could damage the economy instead.Pressure from International Powers:
If the war escalates, Iraq may come under pressure from both the West and Iran to take sides or allow military movements through its territory. This could lead to sanctions or internal unrest, affecting the economy and the value of the Dinar.
Conclusion:
The Iran-Israel conflict increases uncertainty for Iraq. While there might be short-term benefits if oil prices rise, the long-term risks — including instability, loss of investor trust, and delays in economic reform — could weaken Iraq’s economy and negatively impact the Iraqi Dinar.
IRAQ NEWS HEADLINES : Oil Revenues Remain Strong
IRAQ NEWS HEADLINES
Oil Revenues Remain Strong
Iraq continues to benefit from high global oil prices, especially amid tensions in the Middle East.
Oil exports account for over 90% of government revenue, so Iraq’s economy is heavily influenced by global energy markets.
In May 2025, Iraq exported over 3.5 million barrels per day, mainly to China, India, and Europe.
TIDBIT FROM WALKINGSTICK
Walkingstick
The problem used to be Iran. We got security and stability.
The 8th floor [the US Treasury's permanent office in the CBI building] is really controlling them. The problem now is the dinar mattresses.
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