With the start of the implementation of the European audit system “ASYCUDA” in Iraq, the exchange rate of the dollar rose within the parallel market, which economists considered a normal matter in the first stage of implementation. Since the beginning of December, Iraqi markets have witnessed a gradual rise in the exchange rate of the dollar in the parallel market, reaching 1430 dinars after a period of stability in which the dollar reached less than 1390 dinars.
This continuous increase coincides with the entry into full implementation of the European audit system “SKODA” at customs ports, a system that relies on digital tracking and linking customs data with banks, which reduces reduced invoices and non-conforming documents.
Skoda advanced connectivity system
Skoda represents a digital inspection system developed in Europe, a transition from a customs model based on the traditional document to a system that links customs data with banks and ports. Once the system is operational, it is no longer possible to pass goods based on low-value invoices or non-conforming documents. The system fixes the true price of goods according to international databases, matches certificates of origin with transfer movements, and prevents any transaction in which financing transparency is not available.
Economic experts believe that this transitional phase, although a step towards greater transparency and discipline, naturally generates temporary pressures on the market and raises the actual demand for the dollar, especially with the increasing talk about the possibility of tightening banking compliance rules related to foreign transfers.
Dollar exchange rate rise
Financial and banking expert Mahmoud Dagher said that the rise in the dollar exchange rate in the parallel market came after the announcement of the implementation of the ASYCUDA customs system starting from December 1st.
He explained that the current application includes only four goods, namely gold and jewelry, mobile phones, cars and refrigeration equipment, and that the mechanism will be extended to include all goods at the beginning of 2026.
Dagher added that the government may face challenges in implementing the system within the border crossings in northern Iraq, as they do not rely on Skoda, which will hinder the ability of traders there to conduct financial transfers officially, making the market watchful for any reactions that may come during the next stage.
He added that this system created a “temporary duplication” of fees between the old and new systems, which led to additional pressure on the market and short-term effects on the exchange rate.
On the other hand, economic researcher Ali Awad believes that the recent rise in the dollar exchange rate is a natural result of the transitional phase the country is going through with the full implementation of the European customs audit system “Skoda”.
He explained that the market is undergoing a comprehensive restructuring of import costs, which usually leads to a temporary increase in demand for the dollar before prices stabilize at new levels that demonstrate the ability of institutions to manage the transition and secure official channels that comply with the requirements of the new system.
Awad added that there are serious concerns being raised today about possible attempts to sabotage the program.
He pointed out that previous experiences have shown the ability of some influential parties to disrupt customs reform efforts and to thwart similar systems by circumventing procedures or hindering their implementation.
Iraqi Dinar Revaluation Update: What’s Really Happening Behind the Scenes?
As we enter 2026, the Iraqi Dinar (IQD) community continues to watch closely for signs of a long-anticipated Revaluation (RV). While many hoped for a dramatic January 1st announcement, seasoned observers like MarkZremind us that the most important financial shifts often happen quietly, without fanfare.
This latest recap captures key insights, member questions, global developments, and theories that may explain why things appear calm on the surface—but active underneath.
A Calm Start to 2026… or the Calm Before the Storm?
Community members expressed mixed emotions as the new year began:
Hope for an RV on January 1st
Frustration over Iraq’s continued 1310 exchange rate
Curiosity about whether Iraq will go international quietly
Multiple countries allegedly releasing new currencies on January 1st
Coordinated international timing rather than isolated action
While unconfirmed, many see these as supporting signals, not guarantees.
Q&A – Community’s Most Asked Questions
Is Iraq still using the 1310 rate?
Yes, officially—but strengthening indicators suggest change may be pending.
Will the RV be announced publicly?
Likely after the fact, not before.
Could Iran delay Iraq’s RV?
Possibly, but only briefly and strategically.
Is bond silence good or bad?
Historically, silence can mean finalization.
Are banks preparing behind the scenes?
Many signs point to yes.
Featured Snippet: Key Takeaway
The Iraqi Dinar RV may not arrive with fireworks—but with quiet precision. Strengthening indicators, global alignment, and institutional preparation suggest the process is closer than ever, even if confirmation comes later.
MarkZ Disclaimer
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and it’s best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions.
Final Thoughts: Why Patience Still Matters
While expectations ran high for January 1st, experienced voices remind us that real financial resets don’t follow calendars—they follow conditions.
SUDANESE: THE NEED TO RECONSIDER THE ECONOMIC SITUATION TO AVOID A FINANCIAL DEFICIT
– Prime Minister Mohammed Shia Al-Sudani explained on Thursday that supporting the industrial, agricultural, commercial and tourism sectors is the basis for improving the economic situation.
The Prime Minister’s Media Office stated in a statement seen by (Shafaqna Iraq) that “Prime Minister Mohammed Shia Al-Sudani met with a group of tribal sheikhs and dignitaries from Al-Dujail district in Salah Al-Din Governorate.” During the meeting, Al-Sudani stressed that “the districts of Balad and Dujail are among the districts that have made sacrifices in the past and present.” He pointed to the spirit of brotherhood that unites the sons of the Iraqi spectrum in the province.
Terrorism is being pursued in the caves
He explained that “the security services have the readiness, capability and efficiency. There is no foothold for terrorists in Iraq and they are being hunted down in caves, mountains and deserts.” The Prime Minister pointed to the role of the tribes in maintaining brotherhood and communication and addressing the remnants of terrorism and the resulting displacement.
He explained that “the victory over terrorism, sedition and hate speech was achieved by the people’s stand against the alien ideology.” He pointed out that “the district of Dujail has a special status because of the sacrifices it made and its honorable stand against the dictatorial regime, which makes it deserving of care and attention from the state.”
The government has focused on providing services in a manner befitting this country, its capabilities and status, and on working to alleviate the suffering of citizens and improve the economic and living conditions.
Al-Sudani added, “The government of services is not a slogan or a title, but rather a work methodology and a tireless movement from Basra to Mosul.”
He affirmed that a significant portion of the government program’s priorities had been achieved, while progress continued on development and service projects . Service projects were launched in the districts of Balad and Dujail, and work on others was being monitored, with directives issued to finalize procedures for new projects to begin implementation.
Sudanese: The need to reconsider the economic situation to avoid a financial deficit
He stressed the need to reconsider the economic situation to avoid a budget deficit in light of increased expenditures and stagnant revenues. He emphasized the importance of genuine reforms to overcome challenges and prevent Iraq from becoming solely dependent on oil, arguing that stimulating other sectors would generate revenue and address unemployment and job creation issues.
The Prime Minister stated that “there is a heavy legacy spanning four decades that squandered resources and consumed time in the adventures of wars and conflicts.”
He pointed out that “the government has worked during the past three years according to a clear vision and will, and with the support of national forces.
Expressing his confidence in the people’s ability to face challenges and move towards a country with a strong economy where citizens enjoy social justice and a decent life.
He emphasized at the end of his speech that implementing the government’s vision requires sustainable security and stability, which can be achieved through the community standing with the security services.
The Middle East is experiencing a historic shift. While political drama, militias, and foreign influence continue, Trump’s strategy in Iraq is now focused on economics and financial growth, not just military intervention.
A recent article titled:
“TRUMP IS TURNING THE MIDDLE EAST EQUATION UPSIDE DOWN: IRAQ FROM A BATTLEFIELD TO THE GATEWAY TO AN AMERICAN CONTRACTING EMPIRE”
highlights a rational, business-driven approach toward the region.
Trump’s Business-Driven Policy in Iraq
Quoting from the article:
“The image of American policy in the Middle East is no longer confined to scenes of tanks, military bases, and airstrikes. It is increasingly being shaped in the halls of investment conferences, through massive arms deals, and by cross-border economic memoranda of understanding.”
The shift is clear: economic and commercial interests are now prioritized over military intervention.
Naaman Abu Issa, a member of the US Democratic Party, confirmed:
“US policy in the Middle East has witnessed a clear shift during President Trump’s term, focusing now on economic and commercial interests more than direct diplomatic or military intervention.”
Yes, even some Democrats recognize this as a Trump success story.
Global Momentum Despite Iranian Turmoil
Even with Iran in political and economic crisis, global attention on Iraq continues. This strengthens the hope that Iranian influence in Iraq will diminish, leaving Iraqi militias with no choice but to relinquish arms — a critical step for stability.
Iraq’s Election Cycle and Political Structure
Currently:
The House of Representatives announced conditions for presidential candidacy.
The newly elected president will announce the new prime minister.
This marks the next critical step toward political and economic reform, aligning with the Trump administration’s objectives.
The 2026–2028 Securities Strategy
An article titled:
“LAUNCHING THE 2026–2028 SECURITIES STRATEGY TO TRANSFORM IRAQ INTO A REGIONAL FINANCIAL CENTER”
reveals plans to elevate Iraq’s stock market and financial sector.
Key Points:
Comprehensive digital transformation of the Iraqi Stock Exchange (ISX)
Diversification of investment tools
Deepening market liquidity
Attracting foreign investments
Enhancing transparency and investor protection
“This new securities strategy is in line with the government’s directions towards economic reform and revitalizing the financial sector.” — Faisal Al-Haimas, Head of Securities Commission
Featured Snippet: Why This Matters for the Iraqi Dinar
The strategy implies that:
Stability and security are prerequisites for investment
Currency revaluation (removal of zeros) and reinstatement may be imminent
Foreign investment will likely increase if the financial sector is reliable
In short: Iraq’s financial infrastructure is being aligned for both domestic reform and global integration.
State-Controlled Security and Investment Confidence
Earlier reporting, including “9 Economic Benefits of State-Controlled Weapons — Expert Al-Hashemi,” underscores a clear link:
“Restoring Iraqi sovereignty by eliminating loose weapons will yield significant economic gains, freeing Iraq from the grip of uncontrolled arms dealers.”
Implication: Investors are more likely to commit if the country is secure, stable, and legally governed.
Timeline and Next Steps
Reinstatement of currency and potential RV remain tied to removal of zeros, peg adjustments, and investor confidence
Political steps, including approval of a new prime minister, will align with these financial measures
The Securities Strategy (2026–2028) acts as a guideline for long-term stability
In other words: Iraq’s financial future is being mapped — and it’s tied to military neutralization, political reform, and economic revival.
Q&A Section
Q: How does Trump’s policy differ from previous administrations? A: Focus has shifted from military dominance to economic expansion, investment, and financial partnerships.
Q: Why is the Securities Strategy important? A: It sets timelines, standards, and tools to transform Iraq’s financial markets and attract global investment.
Q: How does Iranian influence impact the Dinar? A: Iranian-backed militias and political interference delay stabilization, delaying currency reforms and international investor confidence.
Q: What is the connection between security and finance in Iraq? A: State-controlled security ensures safe investment environments, reduces corruption, and stabilizes the economy for growth.
Conclusion: A Turning Point for Iraq
Trump’s approach is clearly business-oriented. Coupled with ongoing political reform and the 2026–2028 Securities Strategy, Iraq is moving from a battlefield to a financial gateway.
Stability, militia neutralization, and constitutional governance will pave the way for currency reinstatement and global investment, potentially reigniting the Iraqi economy and supporting the long-awaited RV.
Lastly while on this topic, the article titled “TRUMP IS TURNING THE MIDDLE EAST EQUATION UPSIDE DOWN: IRAQ FROM A BATTLEFIELD TO THE GATEWAY TO AN AMERICAN CONTRACTING EMPIRE.”This news gives us a very rational picture of what the new Trump foreign policy towards Iraq is today. Does it surprise you, after all he was a business man. Maybe Trump is just the person we needed in the Whitehouse to get this RV moving along?
I quote from the article – A New map for Iraq. “The image of American policy in the Middle East is no longer confined to scenes of tanks, military bases, and airstrikes. It is increasingly being shaped in the halls of investment conferences, through massive arms deals, and by cross-border economic memoranda of understanding.
This shift, which has deepened during the current term of US President Donald Trump, is not only evident in the rhetoric of the White House and the reports of research centers, but is also reflected in the way American politicians speak about their country’s role in the region, particularly in Iraq.”
In a statement to Baghdad Today, Naaman Abu Issa, a member of the US Democratic Party, put this shift in a direct way, saying that US policy in the Middle East has witnessed “a clear shift during President Trump’s term,” noting that the focus is now on economic and commercial interests more than direct diplomatic or military intervention. Is this democrat admitting a Trump success? Oh… WOW!
What else is in the news?
Meanwhile in the midst of all this Iranian drama taking place the rest of the world is still moving ahead with Iraq and this give me hope and almost certainty that all will work out with this Iranian influence, as radical Islamic influence will most likely be gone or lessened when the currency regime falls. These Iraqi militias may have no choice but to surrender their arms.
Where do they stand in the election cycle? The House of Representatives announced on Wednesday the conditions for candidacy for the position of President of the Republic. Remember that it is the newly elected president that will announce the new prime minister.
Next, we find that the reforms continue in Iraq in spite of the political drama in article titled “LAUNCHING THE 2026–2028 SECURITIES STRATEGY TO TRANSFORM IRAQ INTO A REGIONAL FINANCIAL CENTER”. On Monday, the head of the Securities Commission, Faisal Al-Haimas, announced the imminent launch of the commission’s strategy for the years 2026–2028, in a move aimed at transforming the Iraqi stock market into a leading regional financial center. He stressed that this strategy is in line with the government’s directions towards economic reform and revitalizing the financial sector, indicating that the Authority will work to implement its phases according to well-studied timetables and in cooperation with local and international partners in order to ensure a qualitative leap in the performance of the Iraqi financial market.
Can you already see where I am going to go with this news? I will give you a hint…’securities strategy’. What direct implications can this strategy have on the Iraqi dinar? Remember these ‘Pillars of Financial Reform”? Here is the stock market again. What is traded on the Iraqi Stock Exchange (ISX)? Is it just the ISX trading? Of course, it could mean the Iraqi dinar is traded once again on the currency exchanges with the big boys. Could this also be part of this new strategy?
On Monday, the head of the Securities Commission, Faisal Al-Haimas, announced the imminent launch of the commission’s strategy for the years 2026–2028, in a move aimed at transforming the Iraqi stock market into a leading regional financial center.
Al-Humeis explained in a statement today that the new strategy is based on comprehensive digital transformation, diversifying investment tools, deepening liquidity, attracting foreign investments, in addition to enhancing transparency and protecting investors’ rights. So, tell me how are they going to attract foreign investments with a currency rate of 1320? Seems to me if they could they would not need this strategy, now, would they? Investors would be pouring in already. But they are not and so why? Today in one of our articles we learn about nine (9) economic benefits of state-controlled weapons by expert al-Hashemi. He seems to emphasize that investors are more prone to invest in stable and secure countries not countries where an incident could set off a barrage of gun fire or explosives at any time. So again, we see that peace and stability are needed in Iraq and maybe this ‘lack of’ is what has also hindered the investment flow for many of these projects in the first place.
He stressed that “this new securities strategy is in line with the government’s directions towards economic reform and revitalizing the financial sector, indicating that the Authority will work to implement its phases according to well-studied timetables and in cooperation with local and international partners in order to ensure a qualitative leap in the performance of the Iraqi financial market.”
Oh… here we have a plan again with timetables? I just want to add that along the way, at some time they will have to pull the trigger on the reinstatement project and get it done for any real revitalization of the financial sector to be successful. Who are they kidding? Of course, they are kidding no one and actually came out in recent months and outlined the entire plan for us all to see. It states first the removal of the zeros which leads to a revaluation and then a new peg and reinstatement. Enough said….
IRAN: SPECULATION GROWS ABOUT THE GOVERNMENT’S MOVE TOWARDS UNIFYING THE “EXCHANGE RATE”
(Mnt Goat: This article is all about Lessons Learned. Even the experts are sometimes fooled. I am bringing you this article today not because we are so much concerned about the Iranian currency, as my blog is all about the Iraqi dinar revaluation not the rial or toman. I believe in information and informing my readers of what is really going on and connecting the pieces for you so you can better understand and learn.
I wanted to share this article because it is an educational article on a discussion about two ways to set currency rates. We can see that Iran had multiple currency rates and maybe this was not such a good thing for their economy.
So, let’s look deeper into what a “unified currency rate” vs having “a multiple currency rate” is and the pros and cons of each.
Read the article! If you remember just weeks ago (around Dec 1st) one of the Iraqi economists suggested that the solution to the recent rise of the dollar was to have a multiple exchange rate system.
Really? If you read this article today, you can clearly see why the CBI is stayed away from such a solution.
The CBI has a solution and it’s a massive revaluation of normalization of the dinar and the shift to a new basket of currencies and back to FOREX.
That is their plan.
The CBI already told us many times already that the monetary reserves and the gold can back up the economy and is a safety net for a major crisis (i.e. Covid era) not minor clinches. Just so you know Iraq has only one (1) official exchange rate. The black market rate is not official and is part of the problem and not sanctioned by the CBI as the free market rate is in Iran.
So, in Iran they have what they call a “free market” rate but it is really a legalized black-market rate full of corruption and it allows it to occur.
Sad, isn’t it? We can see the impact corruption has on a currency just be studying Iran.
For Iraq, the CBI “official rate” is a suppressed rate, a temporary rate, a benchmark, until they can get their act together and normalize the dinar.
The CBI made any trading of the dollar outside of the “official rate” illegal. That is the difference between the Iranian free market and the Iraqi black market.
Also remember that when this economist made this suggestion of multiple rates for Iraq it was another knee-jerk reaction to what was really going on to a warped sense of the market.
The sudden, temporary spike in the dollar was from the implementation of the SKODA part of ASYCUDA system with limited products for a trial run.
It was the first time it was turned on with these custom fees for a limited number of products. The CBI fully expected the spike and knew it was temporary.
The CBI did not fall into this trap of a knee-jerk reaction by devaluing the dinar. Many of these silly (and stupid) economists even compared the situation to the COVID years. Many articles flew out by all these economists telling of the danger of what was happening and some silly solutions. The issues never occurred and the rate slowly declined not back to 1310 but better even to 1305.
The CBI kept the citizens informed and then articles come out about their independence in making these kind of decisions. They pretty much told these economists to “mind their own business” and to leave the financial management of the country to the experts. They also talked about how speculators could hurt a good economy and so the economists should stop speculating and deal in FACTS.)
The Central Bank of Iraq postponed on Monday the requirement for companies wishing to purchase dollars for importing goods to submit a prior customs declaration until January 2026, with the exception of four specific commodities for which the requirement remains mandatory. This postponement comes after the General Authority of Customs had previously announced that the procedure would be implemented starting Monday, December 1, 2025.
The General Authority of Customs announced the full implementation of the advance customs declaration system at the beginning of next year, to include all imported goods and merchandise.)
Article Begins:
While talk has returned to Iran about monetary policy reforms and the move towards unifying the exchange rate, a report issued by the Planning and Budget Organization shows that the policy of fixing the exchange rate has not only failed to curb inflation, but has also contributed to expanding the circle of rent-seeking and corruption and causing disruptions in production and exports.
In recent days, speculation has resurfaced regarding the initiation of serious reforms to Iran’s exchange rate policies and the government’s move towards adopting a unified exchange rate. While this news has not yet been officially confirmed, the evidence suggests that the continuation of the multiple exchange rate system, instead of curbing inflation and supporting the livelihoods of Iranian families, has become a source of rent-seeking, exacerbated corruption, and disrupted production and exports.
The newspaper “Donya-e-Eqtesad” reported that the Planning and Budget Organization confirmed in a concurrent report that the policy of fixing the exchange rate has not succeeded in controlling prices, but has instead turned into an obstacle to trade procedures in the country.
Some policymakers argue that current conditions do not permit a unified exchange rate, while others believe that multiple exchange rates have failed to curb inflation or support low-income households, instead becoming a mechanism for rent-seeking. Furthermore, global experience shows that economies adopting multiple exchange rate systems are often plagued by high inflation, without any tangible positive impact on their economic performance.
The profit generated by the gap between the official exchange rate (28,500 tomans) and the free market rate (around 132,000 tomans) undoubtedly has beneficiaries who will not easily allow the government to eliminate it. The defense of the multiple exchange rate system by some members of parliament comes at a time when analytical reports from research centers confirm that the preferential currency allocation has failed to control the prices of basic goods.
In the supporting documents for the 2026 budget bill, the Planning and Budget Organization addressed monetary policy and the multiple exchange rate system, outlining its position on the matter. These documents indicated that the monetary policy adopted in Iran, including the preferential exchange rate, the Hall 1 exchange rate, and the Hall 2 exchange rate, has failed to effectively curb the inflationary effects stemming from the high unofficial exchange rate. The documents further stated that achieving economic stability and controlling inflation through monetary policy should focus on achieving sustainable stability in the free exchange market, as fixing preferential exchange rates is an artificial and unrealistic approach.
The report added that the policy of fixing the official exchange rate has become a costly burden on the national economy, particularly on producers and exporters. These costs include weakened exports, increased demand for imports, hindered repatriation of foreign currency earnings from exports, exacerbated capital flight, weakened domestic production, widespread corruption and rent-seeking, and, most importantly, rampant smuggling.
According to some recent studies, the primary reason for the growth in liquidity is attributed to budget deficits and government financial imbalances. In practice, the government is forced to compensate for the budget deficit by printing money and increasing liquidity, which ultimately leads to fluctuations in the exchange rate and higher inflation rates.