Saturday, November 29, 2025

BRUCE & MILITIAMAN: Iraq Dinar Projections ($3.22 – $4.25) & Key Highlights #iqd

 


at

💹 Exchange Rate Dilemma: Balancing Deficit & Stability 💹

 💹 Exchange Rate Dilemma: Balancing Deficit & Stability 💹

📊 2026 Budget Pressure: Iraq faces a widening deficit of 70–90 trillion dinars, with limited domestic borrowing options.

💡 Government Options:

  • Cut non-salary operating expenses by 15–20%

  • Automate revenue collection & reform financial management

  • Reduce privileges of senior officials & encourage mandatory savings

  • Sell or invest state assets for quick funds (≈10–15 trillion dinars)

⚡ Exchange Rate as a Tool:

  • Raising the rate from 1300 → 1500–2000 dinars could generate 15–70 trillion dinars, bridging the financing gap fast.

  • Acts as a short-term but effective tool when traditional measures fall short.

🛠 Recommended Approach: Combine reforms + asset sales + gradual rate adjustment (1500–1700 dinars) to reduce deficit pressure without over-relying on borrowing.

📌 Key Insight: Strategic exchange rate adjustments can stabilize the economy while reforms address long-term structural issues.

🔗 Stay Connected:

The exchange rate dilemma: Government alternatives between deficit financing and economic stability

By Dr. Ahmed Hadhhal, Professor of Financial Economics

In light of the financial indicators for the 2026 budget, it appears that the exchange rate will be the focus of economic decision-making and the last line of defense against the widening deficit gap, which is expected to reach 70–90 trillion dinars.

 With the slowdown in non-oil revenues, the rise in current expenditures, and the decline in the ability to borrow domestically, fiscal policy enters a critical area that leaves the government with limited and difficult options.

The first logical solution is to rationalize spending and reduce non-salary operating expenses, and to control non-oil revenues through a strict automation and collection system, as well as reforming the state's financial management and reducing the spread of administrative and financial corruption.  

This can significantly reduce the deficit. Reducing privileges and imposing mandatory savings on senior officials can add a large amount to public finances, in addition to this measure being a gesture of goodwill to society so that it accepts the high costs of reform. 

Selling or investing part of the state's assets may provide between 10-15 trillion dinars, an amount that covers only a limited part of the gap. Even when these measures are applied together, the deficit remains high and cannot be fully financed through domestic borrowing without risking a large jump in domestic debt. Therefore, reform must be real through a structural "surgical operation" on spending and revenue items.

The exchange rate appears to be a short-term option, as the government recognizes that the resources generated by raising the exchange rate are the fastest and most effective way to bridge the financing gap.

 Trends and potential scenarios indicate that raising the rate from 1300 to 1500-2000 dinars would provide between 15 and 70 trillion dinars, depending on the level of the increase and the volume of dollar sales.

 This makes adjusting the exchange rate a readily available financial tool that the state resorts to when traditional methods fail to close the gap.

I believe this policy represents a price the economy pays for maintaining the current monetary policy throughout the period of pegging.

Therefore, the government might consider integrating financing tools instead of relying on a single option:

1- A genuine reduction in operating expenses by 15-20%.
2- Reform of the spending system and financial oversight to ensure that artificial inflation in expenditures is not repeated.
3- Selling and investing specific highly liquid assets to secure quick resources.

A gradual and well-considered adjustment of the exchange rate towards 1500-1700 dinars as a starting point is advisable, with the risk of reaching 2000 if oil revenues do not improve.

Combining these tools together reduces the deficit pressure to limits that can be financed internally, and the central bank may pay for this adjustment through its reserves, given that most government spending is directed towards consumption and is considered a tool for effective aggregate demand directed towards imports financed and covered by the exchange rate.

link

at

MILITIAMAN: 💥 Iraq Dinar Update: Major Moves Ahead! 💥

 💥 Iraq Dinar Update: Major Moves Ahead! 💥

🔥 Lower Denomination Bank Notes Ready 🏦

The lower denomination notes—the ones with three zeros removed—are designed, contracted, and ready for release. This is a crucial step for any dinar revaluation, signaling that the financial system is preparing for action.

🌍 New Season in Iraq: Reforms & Progress

Iraq is entering a new economic season. Recent reforms are moving swiftly, and the parallel currency market is reacting fast . These changes indicate real momentum, even if authorities remain quiet.

📉 Parallel Market Dips: Key Indicator

The spread in the parallel market has dropped from 1450 → ~1310–1315. This shows that illegal holders are offloading currency

, trying to avoid risk ahead of official changes.

💡 Why it matters: The dip signals market insiders are preparing for a potential revaluation. Keeping an eye on these numbers is essential for investors.

⚡ Quick & Smooth Changes Possible

History shows that Iraq’s currency adjustments can happen instantly, with minimal disruption, just like the last adjustment by Alaq. Market participants should be ready for fast-moving developments.

Read also: Bank Appointment for Currency EXCHANGE Instructions & Checklist

💡 Key Takeaway

Watch market indicators closely. The parallel market, bank note preparation, and reforms are strong signs that something significant could happen soon, even if no official announcements are made.

🔗 Stay Connected & Updated

🌐 Blog: dinarevaluation.blogspot.com
📲 Telegram: t.me/DINAREVALUATION
📘 Facebook: facebook.com/profile.php?id=100064023274131
🐦 Twitter/X: x.com/DinaresGurus
🎥 YouTube: youtube.com/@DINARREVALUATION

at

Friday, November 28, 2025

💳🇮🇶 Central Bank: Digital Currency to Solve 90% of Iraq’s Financial Problems – Key Highlights 💳

💳🇮🇶 Central Bank: Digital Currency to Solve 90% of Iraq’s Financial Problems – Key Highlights 💳

🏦 Closing Gaps in the Financial System

The Governor of the Central Bank of Iraq, Ali Al-Alaq, emphasized that lasting solutions must address gaps in the financial system.

  • Modern technology and digital tools are key to effective solutions.

  • These measures aim to strengthen the financial system and reduce vulnerabilities.

💵 Reducing Cash Dollar Dependency

Al-Alaq highlighted the main issue between the Iraqi treasury and society: widespread use of the US dollar in cash.

  • Iraq has implemented alternatives that limit cash dollar use, including a “traveler’s dollar” system.

  • According to the US Federal Reserve, Iraq ranks first in controlling cash dollar use

    .

  • These measures have cut foreign currency usage by 80% and shifted most transactions to the Iraqi dinar.

🌐 Digital Currency: A Radical Solution

  • Work is underway to develop Iraq’s digital currency.

  • Expected to solve about 90% of financial system problems.

  • Represents a major step forward in modernizing Iraq’s financial infrastructure.

🌐 Connect With Us

👉 Blog: dinarevaluation.blogspot.com
👉 Telegram: t.me/DINAREVALUATION
👉 Facebook: facebook.com/profile.php?id=100064023274131
👉 Twitter/X: x.com/DinaresGurus

👉 YouTube: youtube.com/@DINARREVALUATION

----------  

Central Bank Governor: Digital currency will solve 90% of the problems in the Iraqi financial system

The Governor of the Central Bank of Iraq, Ali Al-Alaq, affirmed on Thursday that lasting solutions must be built in a way that closes the gaps in the financial system. He explained that the tools available today, especially modern technology, offer effective solutions and address many of these gaps.

Al-Alaq said during the "Investing in Reconstruction... The Role of Banks" conference in Beirut that "the main problem between the Iraqi treasury and society is the use of the dollar in cash within Iraq, which is a normal social matter in Iraqi society. He added: "We have worked on this issue and presented other alternatives that reduce dependence on cash, and we have developed the financial system so that cash dollars are restricted to travelers only."

He explained that the "traveler's dollar" system prevents any attempts at circumvention, emphasizing that the US Federal Reserve indicated Iraq ranks first in controlling the use of cash dollars within the country. He noted that these measures have reduced the use of foreign currency by 80% and shifted the majority of domestic financial transactions to the Iraqi dinar.

Al-Alaq concluded his remarks by noting that work is underway to develop the digital currency, which is expected to solve about 90% of the financial problems in Iraq, stressing that this step represents one of the radical solutions for the financial system in the country.  link


at

BRUCE: 💱🇮🇶 Iraq Cross-Border Trade & Exchange Timeline – Key Highlights 💱

💱🇮🇶 Iraq Cross-Border Trade & Exchange Timeline – Key Highlights 💱

📅 Potential Start of Exchanges

Bruce [via Wiser Now] reports that Iraq will soon be ready for cross-border trade:

  • All countries will be able to trade at new rates with Iraq.

  • Sunday is expected to be Iraq’s first business day for cross-border activity.

  • Exchanges for the public could start Friday or Saturday, but might also begin Monday, December 1st.

⏳ Timeline Updates

Bruce mentions receiving new information to refine the timeline:

  • Notifications could arrive Friday or Saturday, giving a better shot at weekend exchanges.

  • Two other reliable sources indicate exchanges will happen on or before December 1st.

🔹  Current Status

  • Preparations are underway for the cross-border exchange at new rates.

  • Public exchanges depend on official notifications and confirmations.

  • The situation is closely monitored, with multiple sources aligning on a pre-December 1 start.

🌐 Connect With Us

👉 Blog: dinarevaluation.blogspot.com
👉 Telegram: t.me/DINAREVALUATION
👉 Facebook: facebook.com/profile.php?id=100064023274131
👉 Twitter/X: x.com/DinaresGurus
👉 YouTube: youtube.com/@DINARREVALUATION

-------

Bruce  

[via Wiser Now]   Sunday...Iraq is going to be able to do...cross border trade. Cross Border exchange...all the countries in the world...will be able to begin trade at new rates with Iraq, and that tells us Sunday, their first business day...they should be running on Sunday...

So with that being done, you know, I think we could get our exchanges started Friday or Saturday. We'll see what happens...maybe we don’t start exchanges till Monday, which is the first of December...

 We did get some information that we were looking for to give us a, maybe a more accurate timeline for where we are...It looks like the latest information says we would receive our notifications Friday or Saturday...I think if they come out Friday, we got a better shot of going Friday and Saturday...We have two other sources weigh in, very good sources... said...  we will be doing exchanges on or before the first of December... So that's where we are right now in terms of this timeline.


at

Iraq and Your Money: Brace for a Major Shift on December 1


 

at

🏦💼 Iraq’s Central Bank Governor at Arab Banking Conference 2025 – Key Highlights 💼🏦

🏦💼 Iraq’s Central Bank Governor at Arab Banking Conference 2025 – Key Highlights 💼🏦

🌍 Iraq’s Vision for a Stronger Banking Sector

At the 2025 Arab Banking Conference, the Governor of the Central Bank of Iraq highlighted Iraq’s steady progress toward building a strong, modern banking sector.
Key goals include:

  • Enhancing monetary & financial stability

  • Strengthening the banking sector’s capabilities

  • Supporting sustainable economic development

📱 Focus on Digitalization & Financial Innovation

The Governor emphasized Iraq’s commitment to digital transformation, stressing the importance of:

💡 Supporting Investment & National Economic Growth

The Central Bank’s multi-year strategic vision aims to:

  • Support local and foreign investment

  • Enable the banking sector to play a key role in the  national economy’s development

🤝 Strengthening Cooperation with Arab Nations

In closing, the Governor expressed gratitude to the Union of Arab Banks and reaffirmed Iraq’s commitment to:

  • Strengthening cooperation with Arab countries

  • Developing a stable, growing, and innovative financial environment

🌐 Connect With Us

👉 Blog: dinarevaluation.blogspot.com
👉 Telegram: t.me/DINAREVALUATION
👉 Facebook: facebook.com/profile.php?id=100064023274131
👉 Twitter/X: x.com/DinaresGurus
👉 YouTube: youtube.com/@DINARREVALUATION

------

 The Governor of the Central Bank of Iraq participates in the Arab Banking Conference 2025

The Union of Arab Banks organized He noted that Iraq is moving steadily towards building a strong and modern banking sector, capable of leading financial and economic transformation by enhancing monetary and financial stability and strengthening the banking sector's capabilities to be more supportive of sustainable development.

 This will be achieved by relying on the best management and governance standards, and by transitioning towards digitalization and financial and technological innovation. He stressed the importance of consolidating financial inclusion and ensuring the integration of the financial system with the formal economic cycle. 

His Excellency explained that the Central Bank continues to work on implementing a multi-year strategic vision aimed at supporting local and foreign investment and enabling the banking sector to play its vital role in developing the national economy. In closing, His Excellency expressed his gratitude to the Union of Arab Banks and the organizing bodies, stressing the Central Bank of Iraq’s commitment to strengthening cooperation with Arab brothers and developing a more stable, growing and innovative financial environment.

Central Bank of Iraq, 
Media Office, 
November 27, 2025  link


at
Subscribe to: Comments (Atom)

JEFF: Presidential Vote Ahead, Government Formation Progress & What It Means for RV

Iraq Parliament Update: Presidential Vote Ahead, Government Formation Progress & What It Means for RV Introduction: A Critical Moment fo...