Mnt Goat
I was told this situation [with Iran] needs to be resolved in one of two ways or a bit of both:
1. change the regime in Iran
2. institute banking reforms to cut off the dollars from Iran (already seen this action mostly implemented)...I am told the U.S. absolutely WILL NOT allow the reinstatement of the dinar while this Iranian situation continues.
Let’s only pray this ends soon.
The IMF mission commends the Central Bank of Iraq.
June 25, 2025
The International Monetary Fund (IMF) mission, led by Jean-Guillaume Poulain, which met with the Central Bank of Iraq (CBI) from May 4 to 13, 2025, commended the CBI's work in several areas. It confirmed that the CBI has made progress in absorbing excess liquidity by increasing the issuance of short-term debt instruments (CBI drafts and Islamic certificates of deposit), adjusting subscription limits for banks in CBI auctions, and improving liquidity forecasting tools and practices.
The statement issued by the International Monetary Fund stated that the mission commended the efforts of the Central Bank of Iraq to successfully transition to the new trade finance system, indicating that commercial banks now process trade finance transactions entirely through their relationships with correspondent banks.
The Central Bank of Iraq has achieved significant progress by transitioning to the new system for financing foreign trade through correspondent banking channels, instead of relying on the daily dollar auction. This development has contributed to enhancing banks' compliance with international transparency requirements, such as OFAC regulations and others, and improving their relationships with global correspondent banks.
This step has resulted in narrowing the gap between the official dollar price and its parallel price, indicating relative success in curbing illegal speculation and reducing currency leakage. The foreign exchange management methodology has become more effective compared to the past, especially with the Central Bank of Iraq continuing to take complementary measures, such as requiring traders to submit genuine import invoices and simplifying procedures for obtaining hard currency for legitimate importers.
In parallel, the mission welcomed the progress made in the use of digital technology and the Iraqi authorities' intention to implement a comprehensive reform of the banking sector, calling for its completion to be accelerated without delay.
The Iraqi government, with technical support from the International Monetary Fund and other international bodies, has begun implementing initial steps to reform government banks, including auditing the quality of assets, estimating the size of non-performing loans, and developing a draft plan to restructure the two largest government banks (Rafidain and Rashid) financially and administratively.
The Iraqi financial sector has also witnessed an increasing trend towards digitization and the adoption of modern financial technology, whether in electronic payment services or the launch of banking platforms via the Internet and mobile phones.
The International Monetary Fund believes that these technical improvements, along with steps to enhance cybersecurity in banks, promote financial inclusion, expand private banking activity, and restructure government banks, will enhance the efficiency of financial services and increase foreign correspondents' confidence in the Iraqi banking sector.
The report also noted the expansion of private banks' activity in trade finance and small business financing, with expectations of further increases if obstacles are removed. Initiatives to enhance financial inclusion, modernize electronic payment systems, and reduce reliance on cash in the economy are also crucial to strengthening banking depth. The Central Bank of Iraq launched a national financial inclusion strategy during the first half of 2025.
The report also included important recommendations to enhance financial stability and facilitate the transfer of monetary policy effects to the real sector, including: reducing the phenomenon of dollarization, in which Iraq has made significant progress over the past two years; the importance of accelerating the completion of the comprehensive restructuring plan for banks to enhance their solvency; the importance of strengthening corporate governance for banks, developing digital infrastructure and cybersecurity for the financial sector; strengthening the role of private banks in financing economic development; and continuing to improve anti-money laundering and counter-terrorism financing procedures.
It is also important for the Central Bank of Iraq to continue increasing the issuance of short-term securities to ensure better management of excess liquidity.
Central Bank of Iraq
Media Office
https://cbi.iq/news/view/2916
IMF: Iraq has made progress in transitioning to a new system for financing foreign trade.
6/25/2025
The International Monetary Fund (IMF) mission considered that the Central Bank of Iraq has achieved "significant progress" by transitioning to a new system for financing foreign trade.
A statement issued by the bank quoted the mission as confirming that "the Central Bank of Iraq has made progress in absorbing excess liquidity by increasing the issuance of short-term debt instruments (central bank transfers and Islamic certificates of deposit), adjusting subscription limits for banks in central bank auctions, and improving liquidity forecasting tools and practices."
The statement added, "The mission commended the Central Bank of Iraq's efforts to successfully transition to the new trade finance system," noting that commercial banks now process trade finance transactions entirely through their relationships with correspondent banks.
According to the mission, "the Central Bank of Iraq has made significant progress by transitioning to a new system for financing foreign trade through correspondent banking channels, instead of relying on the daily dollar auction."
According to the statement, the mission indicated that "this development has contributed to enhancing banks' compliance with international transparency requirements, such as OFAC regulations and others, and improving their relationships with global correspondent banks."
The statement added that this step resulted in narrowing the gap between the official dollar exchange rate and its parallel exchange rate, indicating relative success in curbing illegal speculation and reducing currency leakage.
The statement continued, citing the IMF mission, that "the methodology for managing foreign exchange has become more effective than before, especially with the Central Bank of Iraq continuing to implement complementary measures such as requiring traders to submit genuine import invoices and simplifying procedures for obtaining hard currency for legitimate importers." LINK
BGG
Article: "Iraq welcomes the ceasefire, stressing that it is a step towards enhancing stability in the region"
Quotes: "The Iraqi Ministry of Foreign Affairs welcomed, on Tuesday, the US initiative that led to a ceasefire agreement between Iran and Israel,stressing that it represents a positive development toward de-escalation and enhancing stability in the region.";
"A ceasefire agreement between Iran and Israel entered into force earlier today, pursuant to a declaration by US President Donald Trump, which calls for a comprehensive and complete ceasefire that has been in place for 12 days."
PMF Militia Leaves Iraq & CBI Prepares Infrastructure – Signals for Iraqi Dinar Holders Introduction Recent developments in Iraq show a ...