DINAR REVALUATION

Monday, July 21, 2025

Achievements And Challenges

Achievements And Challenges

Economic 07/20/2025 Yasser Al-Mutawali While the country is witnessing real achievements in various areas of the economic and service sectors, due to efficient reform policies and clear trends toward stimulating the economy and development,

economists are busy these days searching for ways to confront the expected global financial crisis, which is a periodic crisis facing the global economy. Therefore, experts are seeking to mitigate its effects on the reality of the Iraqi economy.

Perhaps it is useful to emphasize that any warnings issued here and there must be taken into account and benefited from, to avoid the damage that may result from them.

Today, the International Monetary Fund (IMF) issued a warning regarding Iraq's worsening fiscal deficit, due to objective reasons related to geopolitical changes taking place around the world, which have painful economic repercussions, according to its latest report this week.

Therefore, it is necessary to focus on stimulating income-generating productive sectors,
while reducing unnecessary expenditures in order to overcome the crisis phase and its usual cycle.

The IMF's warnings called on

Read also: BETWEEN IMF RECOMMENDATIONS AND BAGHDAD’S AMBITIONS… IRAQ PLANS A NEW ECONOMY

Iraq to review its spending policy and rationalize it with measures that are difficult to implement, as they raise complex social problems.

In order to preserve and sustain the achievements made, austerity measures must be taken, spending must be reduced, and rapid income-generating economic sectors must be stimulated and diversified.

Regardless of the accuracy of the warnings, it has become necessary not to ignore them and to take them seriously,because they are important indicators whose effects must be guarded against.

We see in them an opportunity for the government to implement more radical reforms in fiscal policy,
to confront the dire effects of the expected financial crisis.

Perhaps it is useful to point out that Iraq, as a rentier country, will be at the forefront of the countries affected and most affected, especially if oil prices fall below the hypothetical price planned for the budget.

This reality requires the government to review current spending plans, reduce all non-essential expenditures, and boost non-oil revenues by revising tax and customs duties, reforming the personal income tax, creating private sector jobs without relying on government jobs, and regulating the import of non-essential goods.

It is perhaps worth emphasizing once again that ignoring the warning, regardless of the accuracy of the information contained in the report,remains a matter that requires serious consideration. https://alsabaah.iq/117658-.html

AJ: 🚨 Dinar Surge! Parallel Market Drops Below 1,400 for 1st Time – Revaluation Getting Closer 🇮🇶💸

Great News for Iraq's Parallel Market - Declined

It traded below 1,400for the 1st time 1,397 IQD per $1 dollar.

Big Milestone60 more IQD to hit official rate 1,320

On Sunday, the US dollar weakened against the Iraqi dinar in both Baghdad and Erbil,

Baghdad’s central exchanges registered a rate of 1,401 IQD per $1. Earlier in the day, the rate stood at 1,403 In local currency exchange shops across Baghdad, the dollar was selling at 1,400 IQD and buying at 1,390 IQD per $1.

In Erbil, the dollar was selling for 1,397 IQD and buying for 1,396 IQD per $1.

If you are New Here welcome and I have the best followers, they rock: Just know the parallel Market rate must be the same as the CBI's offical rate 1,320 for Iraq to revalue their currency. The Central Bank's plans to unify the two dollar exchange rates gradually in the second half of 2025 Gradual unification aims to minimize economic shocks, stabilize inflation, and restore confidence in the Dinar currency.

🔐 Iraq Launches Biometric Cards – Another Step Toward IQD Revaluation! 🇮🇶💸 #IQD #IraqiDinar

Parliamentary Finance Committee: OPEC informed SOMO that 280,000 barrels smuggled from the region are counted against Iraq's share.

Parliamentary Finance Committee: OPEC informed SOMO that 280,000 barrels smuggled from the region are counted against Iraq's share.

The head of the Parliamentary Finance Committee, MP Atwan al-Atwani, confirmed on Friday that OPEC informed the State Oil Marketing Organization (SOMO) that approximately 280,000 barrels of oil smuggled daily from the Kurdistan Region are counted as part of Iraq's quota.

Al-Atwani said in a televised interview followed by ( IQ ):

"The region is smuggling oil and exporting about 280,000 barrels per day in an undeclared manner. A message arrived from OPEC to SOMO stating: 'We are receiving oil from your side. It is true that it is not in your name, but it is your oil.' It is estimated at about 280,000 barrels per day."

The MP pointed out that "our share has been reduced. We are now exporting about 3.2 million barrels per day, but this smuggled oil from the region is counted within the amount allocated to Iraq, and therefore is considered part of the revenue reduction link

MNT GOAT: 🌈 “Stop Wishing on a Rainbow” – Mnt Goat Says Dinar Reinstatement Is Closer Than You Think! 🇮🇶💥

Mnt Goat

...As investors in the dinar, we have to fully understand here what is going on and stop wishing on a rainbow for the RV...it is coming and sooner than you think, I assure you! ...

When the time is ready for the reinstatement it will kick off with the Project to Delete the Zeros, then monitor for inflation and then if all goes well they will move to reinstate the dinar back to FOREX..

Read also: MNT GOAT: She has been put on alert to begin the Project to Delete the Zeros

Today’s articles once again only confirm what I have been hearing from my CBI contact and what other past articles have told us...

Since 2011 there was a vision developed for Iraq and it took years to push Iraq in the direction needed, if they ever wanted to get their currency back. But this is the time and we are watching this vision play out...

Even though the vision for Iraq has changed since the Dr. Shabibi time, the process to move the currency back to FOREX has not.

🚀 Iraq 2025 Breakthrough: IMF Report Complete & Biometric ID Rollout Begins! 🇮🇶🔐 #IQD #IraqiDinar

Has The Central Bank Destroyed The Private Banking Sector In Iraq Forever?

Has The Central Bank Destroyed The Private Banking Sector In Iraq Forever?

A dysfunctional banking sector in an oil country July 17, 2025 Last updated: July 17, 2025

Al-Mustaqilla / Investigative Report / - Although Iraq possesses vast oil wealth, its banking sector remains primitive, lacking depth and reliability. This is clearly demonstrated by the weakness of financial inclusion, with only 19% of citizens owning a bank account, one of the lowest rates in the region.

This weakness reflects a profound structural flaw in the relationship between citizens and banks and
raises fundamental questions about the effectiveness of monetary policies and  banking supervision
in Iraq.

Controversial Monetary Policies

In recent years, the Central Bank of Iraq has pursued erratic monetary policies, most notably uncontrolled monetary expansion.

The money supply increased     from 46 trillion dinars     to more than 100 trillion dinars     in just two years,     without corresponding real economic growth.

This led to inflation exceeding 7.5%,prompting the Central Bank to raise interest rates to 7.5% before later reducing them to 5.5%, a move that had no tangible impact on the market.

Furthermore, a large gap remained between the interest rate on loans,     which exceeds 10%, and
the interest rate on deposits, which barely reaches 7%, deepening citizens' reluctance to deposit and weakening banks' ability to provide financing.

Out-Of-System Criticism And Loss Of Trust

The problem lies not only in policies, but also in the grim reality that the vast majority of cash in circulation is outside the banking system.

This massive leakage weakens banks' ability to perform their role as financial intermediaries and reflects a genuine crisis of confidence between citizens and banks.

Following banking bankruptcy scandals, the     dominance of partisan figures in some private banks,
     declining services, and the  absence of any effective deposit insurance system, citizens have come to view banks as a threat rather than a refuge.

Consumer Loans Without Real Development

One of the most notable failures is that most of the loans granted by banks in recent years have been
directed toward consumption, not production.

Car financing, personal loans, and installments for recreational purposes have gone unmet,
with no real focus on supporting productive projects or small businesses.

This has led to increased speculation in the real estate market and  rising land prices,
without any real production or job creation. Instead, it has led to population growth and urbanization without a corresponding economic structure.

Government Monopoly And Administrative Laxity

The Iraqi banking sector revolves around Rafidain and Rashid Banks, which control most of the sector's assets.

However,
     their performance is weak,
     their administrative structures are clearly lax, and
     their branches are not electronically connected and lack a modern technical infrastructure.

Meanwhile, the Central Bank has failed to
develop a strict regulatory framework or
     impose governance on bank boards of directors,

allowing small financial institutions to operate outside regulatory control for many years.

Currency Window As An Entry Point For Money Laundering

One of the most dangerous tools that contributed to undermining the banking system is the foreign exchange window.

The central bank sells dollars at the official rate to private banks,
     then resells them on the parallel market at a significant profit margin.

This mechanism provided an ideal environment for money laundering and smuggling abroad,
     exploiting
          weak banking oversight and
          duplicate names and documents in transfer requests.

Many banks exploited these differences to make illicit profits, and
     some had their licenses later revoked following international intervention.

International Sanctions Indicate A Defect

Beginning in 2022, the United States began imposing a ban on a number of Iraqi banks from dealing in dollars due to suspicions of suspicious transfers and money laundering.

The list was later expanded to include new banks,
     disrupting a significant portion of foreign trade and remittance operations and
     negatively impacting the Central Bank of Iraq's credibility with international institutions and correspondent banks.

Banking Licenses Without Clear Controls

In recent years, the Central Bank of Iraq has granted unprecedented numbers of new banking licenses,
     bringing the number of private banks to over 70,
     without any economic justification or genuine assessment of market needs.

This quantitative expansion has come
     at the expense of quality and oversight,
     contributing to the fragmentation of the banking market and the
     creation of fragile entities, both financially and administratively weak,
often exploited as fronts for partisan agendas or foreign interests.

Negligence Of Banking Sovereignty

Although the Private Banking Law clearly sets a maximum foreign ownership limit in Iraqi banks,
     not exceeding 25%, the Central Bank has unjustifiably overlooked this restriction.

Foreign financial institutions have been allowed to own significant stakes in a number of banks,
     either directly or through local front companies.

This has
     led to an imbalance in the ownership structure and
     created external financial dependency that
     threatens Iraq's economic decision-making and
     undermines the independence of the national banking system.

Bleeding Profits Abroad Without Investment

In a dangerous precedent, the Central Bank allowed bank managements—most of which are owned by foreign institutions—to transfer more than 75% of their annual profits abroad in the form of dividends, without requiring them to reinvest a portion of these profits within the Iraqi market.

This behavior
     violates the most basic rules of development banking and
     should have been countered by clear measures
          compelling these banks to
          develop their services,
          strengthen their capital, or
          contribute to national investment projects,
rather than becoming mere channels for transferring hard currency abroad.

Urgent International Advice For Reform

Several international institutions, including the  US Treasury, the     International Monetary Fund, and the     World Bank, have made clear recommendations.

Prominent among them are:
     stricter compliance with anti-money laundering and counter-terrorism financing laws,
     enhanced transparency in dollar transactions,
     strengthened internal and external oversight of banks,
     reviewed asset quality, and      modernized the sector's digital infrastructure.

These institutions also called for raising minimum bank capital and merging or liquidating distressed banks to create a more robust system.

Direct Responsibility Of The Central Bank

The Central Bank is not only a neutral supervisory body; it is also a genuine partner in the crisis.

It has
     allowed the currency window to continue despite its risks,
     failed to require banks to adhere to international governance standards,
     been lax in enforcing controls on foreign ownership, and
     failed to establish an effective legislative framework to protect depositors or regulate the banking structure.

Its responsibility is not merely technical, but also ethical and institutional in the face of an economy being drained.

The Opportunity For Reform Still Exists.

Despite the bleak outlook, there is still a chance to save the Iraqi banking system.

This requires
     political and professional will, beginning with legislative reform,
     imposing strict oversight,
     enhancing transparency, and
     cooperating with international institutions to restore confidence.

There can be no real development without a strong banking sector,
     and no successful banking sector without an   independent and effective central bank that understands that it   is not just a guardian of liquidity, but also a stabilizing force.
https://mustaqila.com/القطاع-المصرفي/