Wednesday, July 23, 2025
The Dollar Approaches The Official Rate: A Real Reform Or A Temporary Trick?
The Dollar Approaches The Official Rate: A Real Reform Or A Temporary Trick?
July 22, 2025 Last updated: July 22, 2025 Al-Mustaqilla/- In a move that suggests a "shift" in the government's policy toward the dollar crisis, Mazhar Mohammed Saleh, the financial advisor to Prime Minister Mohammed Shia al-Sudani, revealed five factors that he said would lead to narrowing the gap between the official and parallel rates, paving the way for what he described as a "matching" phase between the two rates.
But the most important question is:
Is what is happening real reform?
Or is it merely "economic makeup" that masks a fragile reality?
The official exchange rate, set by the Central Bank at 132,000 dinars per $100, is now approaching the parallel market rate of 139,000 dinars.
This decline is viewed by some as a positive sign, while others view it as a "politicized" and temporary move to calm the street ahead of upcoming political and economic events.
Five factors or five pressure cards?
The government's primary consideration is preventing dollarization, particularly in the real estate sector.
While this may sound like a good move in theory,
it raises questions about its implementation in a market teeming with informal transactions.
The second factor relates to transfers via global correspondent banks after the central bank window closed.
However, observers question:
Are these transfers truly available to everyone,
or are they restricted to specific names and companies?
The third factor is the entry of small traders into the official transfer window,
a step whose effectiveness on the ground is questioned by many due to the red tape and bureaucracy.
The fourth factor revolves around the expanding use of electronic cards, a move that is hampered by technical infrastructure and a deeply ingrained cash culture.
The fifth factor relates to what the government calls "price defense" through cooperatives, a policy that could return Iraq to the era of "ration cards,"amid doubts about its sustainability.
Is the difference really less than 4%?
Advisor Saleh's statements that the difference between the two rates has become "merely a transaction cost" open the door to a broad economic debate:
Can we speak of "convergence" while the parallel market persists?
Have the dollar mafias truly been eliminated?
Or have their positions merely shifted?
In conclusion: appeasement or radical treatment?
Achieving a unified exchange rate is a legitimate popular and economic demand.
However, without a comprehensive reform of the financial system, increased transparency in transfers, and ensuring fairness in cash distribution, any decline in the parallel market may prove to be nothing more than a "warrior's rest" before another explosion. https://mustaqila.com/الدولار-يقترب-من-الرسمي-إصلاح-حقيقي-أم/
Tuesday, July 22, 2025
An upcoming meeting between Erbil and Baghdad to discuss the mechanism for implementing the salary agreement is scheduled for tomorrow
An upcoming meeting between Erbil and Baghdad to discuss the mechanism for implementing the salary agreement is scheduled for tomorrow.
Technical delegations representing the Kurdistan Regional Government and the federal government are scheduled to hold their first meeting in Baghdad tomorrow, Tuesday, to agree on a mechanism for implementing the agreement signed between them regarding oil exports, salaries, and local revenues. The aim is to reach an understanding and disburse salaries and financial dues to the region.
On Monday, Al-Jabal platform learned from a government source details of a report prepared by the joint committee between the Iraqi Ministry of Oil and the State Oil Marketing Organization (SOMO), which will be submitted to the Ministry of Oil and Prime Minister Mohammed Shia al-Sudani. The report stated that "the Kurdistan Region currently has an estimated production capacity of less than 81,000 barrels of oil per day."
Last Thursday, a joint technical committee from the Iraqi Ministry of Oil and the State Oil Marketing Organization (SOMO) visited Erbil for four days, visiting the fields that were attacked by drones. The committee also prepared its own report on procedures for resuming oil exports.
The committee stated in its report: "Since the 16th of this month, oil production capacity in the Kurdistan Region has decreased to 81,000 barrels per day due to drone attacks."
One of the points of agreement between Erbil and Baghdad was the allocation of 50,000 barrels of oil per day to meet the region's domestic needs. The Kurdistan Region's production capacity was 280,000 barrels per day before the drone attacks.
Operations at five oil fields have now been halted following drone attacks targeting Kurdistan's energy infrastructure in recent weeks, while operations at other fields have been restricted for security reasons. link
MNT GOAT: 🚨 “One Rate. One Dinar. The CBI’s Big Move Is Closer Than You Think!” 💥
Mnt Goat
There will NEVER...EVER be two different IQD rates...To conduct the Project to Delete the Zeros the CBI will make a very significant rate change close to a dollar either way.
Then later when the dinar does reinstate whatever rate that is on the global currency exchanges will apply both inside and outside Iraq.
...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...
Trump & Crypto: Will Bitcoin's Success Translate to the Iraqi Dinar?
Trump's Policies and Cryptocurrency: Will Bitcoin's Success Translate to the Iraqi Dinar?
The relationship between political leadership and financial markets has rarely been as pronounced as it is today with cryptocurrency. Since Donald Trump's return to the presidency in January 2025, Bitcoin has experienced remarkable gains, prompting investors to wonder whether this success might extend to other alternative investments like the Iraqi Dinar, where some people expect a significant dinar revaluation. However, the fundamental differences between these assets reveal why Bitcoin's trajectory under Trump's administration is unlikely to be replicated by the Iraqi Dinar.
Bitcoin's Meteoric Rise Under Trump's Pro-Crypto Policies
Bitcoin has demonstrated extraordinary performance since Trump's re-election, with the cryptocurrency surging approximately 60% since November 2024 and reaching heights of $111,000. This dramatic increase can be attributed to several specific policy initiatives and strategic decisions by the Trump administration.
The foundation of Bitcoin's success lies in Trump's complete reversal from his previous skeptical stance toward cryptocurrency. During his campaign, Trump promised to make America "the crypto capital of the planet," and his administration has delivered on this promise through concrete legislative and regulatory actions. In March 2025, Trump signed an executive order establishing a Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, signaling the federal government's commitment to cryptocurrency adoption.
The administration's approach has been systematically supportive of the cryptocurrency industry. Congress recently passed the first major crypto legislation in U.S. history, providing regulatory clarity that has been long sought by the industry. This regulatory framework has reduced uncertainty and encouraged institutional investment, contributing to Bitcoin's price appreciation.
Trump's appointees reflect this pro-crypto stance, with one in five top administration picks holding cryptocurrency assets, some worth millions of dollars. This alignment between policy and personal investment demonstrates the administration's genuine commitment to cryptocurrency adoption rather than mere political rhetoric.
The Iraqi Dinar: A Fundamentally Different Asset
The Iraqi Dinar operates in an entirely different economic and political ecosystem from Bitcoin. While Bitcoin is a decentralized digital asset that responds to global market forces and regulatory changes, the Iraqi Dinar is a sovereign currency tied to Iraq's economic fundamentals and monetary policy decisions.
Current exchange rate data shows the Iraqi Dinar trading at approximately 1,310 dinars per U.S. dollar as of July 2025, representing minimal fluctuation over the past year. The International Monetary Fund projects an average exchange rate of 1,300 dinars per dollar for both 2025 and 2026, indicating expectations of stability rather than dramatic appreciation.
The Central Bank of Iraq has successfully transitioned to a new trade finance system managed by commercial banks, which has contributed to exchange rate stability. However, this stability is precisely what differentiates the Dinar from Bitcoin-the Iraqi currency is managed to maintain purchasing power rather than to serve as a speculative investment vehicle.
Why Trump's Crypto Policies Won't Impact the Dinar
Several fundamental factors explain why Trump's cryptocurrency-friendly policies cannot replicate Bitcoin's success with the Iraqi Dinar:
- Regulatory Jurisdiction: Trump's policies directly impact assets under U.S. regulatory authority. Bitcoin, as a global digital asset traded on U.S. exchanges and held by U.S. institutions, falls within this sphere of influence. The Iraqi Dinar, however, is governed by Iraq's Central Bank and monetary policy, which operates independently of U.S. cryptocurrency regulations.
- Asset Classification: Bitcoin is treated as a digital commodity and investment vehicle, making it responsive to regulatory changes that affect investor sentiment and institutional adoption. The Iraqi Dinar functions as a national currency with exchange rates determined by economic fundamentals such as oil revenues, trade balances, and monetary policy decisions.
- Market Dynamics: Bitcoin's price appreciation stems from increased institutional adoption, regulatory clarity, and speculative investment driven by Trump's supportive policies. The Iraqi Dinar's value is tied to Iraq's economic performance, oil exports, and regional stability-factors largely unrelated to U.S. cryptocurrency policy.
- Investment Infrastructure: The cryptocurrency ecosystem has developed sophisticated trading platforms, custody solutions, and financial products that respond rapidly to policy changes. The Iraqi Dinar lacks this infrastructure for speculative investment, with most transactions occurring through traditional foreign exchange channels focused on trade and remittances rather than investment.
Economic Realities and Market Projections
Financial forecasts for the Iraqi Dinar suggest continued stability rather than dramatic appreciation. Market projections indicate potential slight depreciation, with the exchange rate possibly reaching around 1,318 IQD per USD by the end of 2025. These projections reflect expectations of gradual economic adjustments rather than the explosive growth seen in Bitcoin.
Iraq's economy remains heavily dependent on oil revenues, which are calculated based on the exchange rate of 1,300 dinars to one dollar in the federal budget. This dependency on commodity prices and the government's fiscal management creates a fundamentally different value proposition from Bitcoin's technology-driven and adoption-based appreciation.
The Broader Investment Landscape
The contrast between Bitcoin and the Iraqi Dinar illustrates a broader principle about how different asset classes respond to political and regulatory changes. Bitcoin's success under Trump's administration demonstrates the power of regulatory clarity and institutional support for emerging asset classes. The cryptocurrency's decentralized nature and global trading infrastructure make it particularly responsive to positive policy developments.
Traditional currencies, even those from developing economies, operate within established monetary systems designed for stability rather than speculation. The Iraqi Dinar's role as a medium of exchange and store of value for Iraq's economy necessitates careful management to prevent the volatility that investors seek in alternative assets.
Conclusion
While Trump's pro-cryptocurrency policies have created a favorable environment for Bitcoin's remarkable performance, these same policies cannot produce similar results for the Iraqi Dinar. The fundamental differences between a decentralized digital asset and a sovereign currency mean that each responds to entirely different sets of economic and political factors.
Bitcoin's success under Trump's administration reflects the power of regulatory support and institutional adoption in driving speculative asset prices. The Iraqi Dinar's stability reflects the careful monetary management required to maintain a functioning national currency. Investors considering whether Trump's policies might benefit the Iraqi Dinar should recognize that the two assets exist in fundamentally different economic ecosystems, with success metrics that are not only different but often contradictory.
The lesson for investors is clear: while political leadership can significantly impact certain asset classes, the specific characteristics of each investment determine how it responds to policy changes. Bitcoin's technological foundation and speculative nature make it responsive to regulatory developments, while the Iraqi Dinar's role as a national currency requires it to prioritize stability over explosive growth.
For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1
🇮🇶💵 IRAQ’S ECONOMIC TRANSFORMATION MAY BE FOLLOWING A MUCH BIGGER PLAN
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