The Iraqi dinar is tightly controlled and set and managed by the Central Bank of Iraq not by open forces like the Forex market.
This is called a managed or pegged exchange rate. The CBI decides when or if the rate changes. Even during conflict, the rate can remain and has remained the same...
The Iraqi dinar is not freely floating on global markets like major currencies in Forex.
Instead, it is managed and regulated by the Central Bank of Iraq (CBI) 🇮🇶
This means the CBI plays a direct role in setting and stabilizing the official exchange rate.
⚙️ What “Managed / Pegged Rate” Means
A managed exchange rate system means the currency value is influenced or controlled by a central authority 🏛️
The CBI decides:
when adjustments happen 📊
how much the rate moves 💹
and how stability is maintained
🛑 Stability Even in Crisis
In many cases, even during periods of conflict or instability, the dinar’s official rate has remained relatively stable. ⚖️
This stability is achieved through:
foreign reserves 💰
currency auctions
strict capital controls
🧠 Key Understanding
The Iraqi dinar is not driven by open market speculation alone like free-floating currencies.
Instead, its value is heavily influenced by policy decisions, monetary controls, and government intervention.
📊 Simple Insight
A managed currency system gives the CBI strong control over stability, but it also means any major change in value would be a deliberate policy decision, not a natural market event. 🇮🇶📉📈
WASHINGTON SENDS A NEW MESSAGE TO THE NEXT IRAQI GOVERNMENT
The US government sent a new message today, Friday, to Iraqi government, the next one, while reiterating its rejection of the involvement of armed factions in the next Iraqi government.
NBC News quoted a State Department official as saying that there is currently a “blurred” line between Iraqi state” and the armed factions,” he urged Iraqi government, the new one that is expected to form prime minister the assigned Ali Al-Zaidi” to sever its ties” with those groups.”
The official called on the government of Iraq to take the next step is to issue a clear statement stating that the militias are not part of it,” stressing that “American facilities in Iraq were subjected to more than 600 attacks during the military conflict that the region witnessed from the end of February until the ceasefire came into effect on April 8.”
Daily Iraqi dinar updates with insights from popular dinar gurus.
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All these projects we read about from the al-Sudani administration are still in progress and will deliver the benefit we all desire, but just not yet. We also have to cancel the Iranian influence in Iraq and we can now see this too is in the making. ...I believe we are closer than ever for the dinar to get reinstated. But first things first.By now everyone should be fully aware of these events that caused delays in the currency reform process...
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🇮🇶 Iraq Update — “Closer Than Ever” Narrative on Currency Reform
🔎 Key Claims from the Commentary
Ongoing projects under the Al-Sudani administration are still progressing and expected to bring long-term economic benefits, but not immediately. 🏗️⏳
The author argues that reducing Iranian influence in Iraq is a critical part of the reform process and is currently underway. 🇮🇶⚖️
These developments are framed as important steps toward restoring full economic sovereignty and stability.
💱 Currency Reform Perspective
The view expressed suggests Iraq is “closer than ever” to a potential currency reinstatement (RV concept). 📈
However, it also emphasizes that delays exist due to structural and political challenges. ⛔
Key obstacles mentioned include security, foreign influence, and institutional reform.
🧠 Analytical Context
From a neutral standpoint, these types of narratives usually link currency outcomes to three broad conditions:
🏦 Institutional and financial system stability
🛢️ Economic diversification and revenue control
🛑 Internal security and reduction of armed non-state influence
These are commonly discussed macro-conditions for long-term currency confidence, but they do not guarantee any specific exchange rate outcome or timeline.
📊 Bottom Line
The commentary reflects a high-expectation investment narrative: Iraq is making progress, but key political and security reforms are still viewed as necessary before any meaningful currency change could realistically occur. 🇮🇶💰
REPOSITIONING OF FACTIONS IN IRAQ… HANDING OVER WEAPONS IS THE GATEWAY TO PARTICIPATION IN AL-ZAYDI’S GOVERNMENT
Iraq is witnessing a significant political and security development: several armed factions have announced their intention to hand over their weapons to the Popular Mobilization Forces (PMF) in the near future. This move is interpreted as a political repositioning in preparation for participation in the anticipated Iraqi government headed by Ali al-Zaidi .
Informed Iraqi sources confirmed to Al-Nahar that “the factions’ move, spearheaded by Asa’ib Ahl al-Haq led by Qais al-Khazali, Kata’ib al-Imam Ali led by Shibl al-Zaidi, and Ansar Allah al-Awfiya led by Haider al-Gharazi, comes within the framework of their efforts to solidify their presence in the political arena and prepare themselves for joining the new government.”
The sources added that “this move coincides with escalating international pressure, led by the United States , which has intensified its messages to Iraqi political leaders in recent weeks, warning against the inclusion of any armed faction in the upcoming government.”
It indicates that “ Washington informed the Iraqi leadership, as well as the prime minister-designate, that the participation of any armed faction in the government would negatively affect bilateral relations, with the possibility of taking political, economic and security measures, especially in the areas of financial and security cooperation.”
Observers believe that the announcement by some factions of their readiness to hand over their weapons to the Popular Mobilization Forces (PMF) may be interpreted in Washington as a superficial step aimed at repositioning, not dismantling the military structure. These reorganizations may also be used as a means to absorb international pressure without fundamentally altering the nature of armed influence.
Strategic affairs expert Abbas al-Jubouri told Al-Nahar, “Handing over weapons to the PMF may not be seen internationally as a genuine step towards ending the presence of weapons outside the state’s control, but rather as a measure within the context of political and organizational repositioning.”
He added, “The American assessment depends on the extent of actual change in the factions’ military decision-making structure, not on political pronouncements. Any step that is not accompanied by a genuine dismantling of the armed structure and full integration into official institutions will be considered an attempt to absorb pressure.”
Testing the seriousness of integration and weapons control
Al-Jubouri warns that “reorganizing Iraqi factions under an official umbrella without changing the nature of the leadership or the sources of decision-making could entrench the duality of armed groups within the state, raising international concerns about security stability in Iraq.”
He points out that “continuing this approach could expose the next government to increasing political and economic pressures and could negatively impact the level of security cooperation and international support, thus necessitating the adoption of a clear path that ensures the state effectively monopolizes weapons.”
Conversely, analysts believe that the success of this path in modifying the international stance remains contingent on the transparency of its implementation and the extent of genuine integration within the security apparatus, free from the duality of decision-making and armed groups. Experts also emphasize that any real transformation requires broad internal consensus and direct dialogue with international parties, given the complexities of the Iraqi landscape and the intertwining of security and political issues.
Daily Iraqi dinar updates with insights from popular dinar gurus.
Subscribe for more updates and breaking news.
We are not a registered investment adviser, broker-dealer, or bank.
🔗 Blog: https://dinarevaluation.blogspot.com/
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Quote: "Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) increased economic pressure on Iran and its proxy militias in Iraq by designating...
Iraq’s Deputy Minister of Oil, who abuses his position to facilitate the diversion of oil to be sold for the benefit of the Iranian regime and its proxy militias in Iraq...The Iranian regime is pillaging resources that rightfully belong to the Iraqi people, said Secretary of the Treasury Scott Bessent.Treasury will not stand idly by as Iran's military exploits Iraqi oil to fund terrorism against the United States and our partners.”
The U.S. Treasury’s OFAC has increased sanctions pressure on Iran and its proxy networks operating inside Iraq. 🇺🇸⚖️
The action targets Iraq’s Deputy Minister of Oil, accused of facilitating oil diversion benefiting Iranian-backed groups. 🛢️🔗
🧾 Core Allegations
Iraqi oil revenues are allegedly being redirected through corruption networks linked to Iran.
Oil is reportedly being moved and sold in ways that bypass official Iraqi state control. 🚛💸
These operations are said to fund Iran-aligned militias inside Iraq.
🗣️ U.S. Position
Treasury Secretary Scott Bessent stated that Iran is “pillaging resources that belong to the Iraqi people.”
The U.S. emphasized it will not allow Iraqi oil to be used to finance terror-related activities or regional destabilization. 🚨
🌍 Geopolitical Impact
This highlights the ongoing struggle over control of Iraq’s oil sector and financial sovereignty.
It reflects U.S. efforts to cut funding channels to Iran-backed groups such as Asa’ib Ahl Al-Haq and other proxy networks.
📊 Big Picture Insight
This situation shows a deeper geopolitical push to:
tighten control over Iraqi oil revenues 🛢️
reduce corruption and parallel financial networks 💰
weaken militia-linked economic influence ⚖️
In theory, stronger enforcement of state control over oil and revenue flows can support long-term financial stability in Iraq and improve confidence in its economic system. 📈🇮🇶
