🚨 STATUS OF THE RV – Highlights
📌 As June comes to an end, more information is emerging about what is delaying the Revaluation (RV) and Reinstatement of the Iraqi dinar.
🌍 Iraq continues to be highly dependent on oil revenues, making its economy vulnerable whenever regional crises disrupt oil exports.
🦠 During the COVID crisis:
🔹 Oil revenues collapsed.
🔹 Iraq used CBI reserves to pay government expenses.
🔹 The dinar was devalued from 1,182 IQD/USD to 1,450 IQD/USD.
🔹 It later returned to 1,320 IQD/USD, but not to its pre-COVID rate.
📈 The current exchange rate adjustments are described as temporary financial measures, not structural banking reforms.
🏗️ Prime Minister Al-Zaidi's economic plan aims to:
✅ Increase non-oil revenues.
✅ Strengthen Iraq's local economy.
✅ Reduce dependence on oil.
✅ Better protect Iraq from future economic crises.
⚠️ Due to the recent regional tensions and disruptions affecting oil transportation, discussions have emerged about adjusting the official exchange rate to approximately 160,000–165,000 IQD per 100 USD.
💵 According to the report, this would apply to Iraq's domestic exchange rate, not an international FOREX rate.
🌐 The report also states that Iraq's long-term objective is to move beyond its heavy reliance on the U.S. dollar and strengthen the Iraqi dinar through broader economic reforms.
📅 More developments are expected as Iraq continues implementing its economic and financial reform agenda.
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STATUS OF THE RV
Glad everyone could join me today on my blog. As we near the end of June we are told more news of what is holding up the revaluation and reinstatement. What I really don’t understand is if this is all true information (which it is) then how can anyone tell you the RV has been imminent over these last twenty (20) years?
Let’s get right into the news.
I will need everyone to settle down and relax when reading today’s news. It is a long commentary today since there is a lot of news to get through. Some of it can seem VERY scary but in reality it is comforting. We must get through this to get to it (the RV). I will tell you why. Let’s explore the main topics as on my Newsletter headlines.
So, we all should know by now that when the middle east erupts, Iraq always suffers and the Iraqi dinar takes a hit. This happened during the Covid crisis not because of the virus perse but because the world was shut down and oil was not consumed, thus oil took a big hit. Without the rentier economy (oil as 95% of revenues) of course there was no money to pay salaries and run the government. Thus, the government had to move money from the CBI reserves to pay it’s bills. The reserves declined to near dangerous levels.
During this Covid crisis time the CBI devaluated the local currency by more than 20 percent, the biggest devaluation since 2003, adjusting the ex-change rate from IQD 1182/USD to IQD 1450. After the crisis and oil was flowing again it ‘revalued’ back to 1320/USD but it never regained its original pre-crisis value of 1182. Why? You would think it would. But this goes much, much deeper than this…. Let’s take an honest, common sense look at this today.
I need everyone to know these changes in the dinar are NOT structural banking reasons for devaluation but local, short term financial reasons due to the drop of oil exports. This comes from too much of reliance on oil to pay Iraqi’s bills. When oil flow stops or slows down Iraq hurts. So, we all know about al-Zaidi’s plan to change all this and have the economy generating at least 45%-50% non-oil revenues to protect itself in the future from these oil crises. These non-oil revenues they refer to in the articles as the “local economy”, which is revenues generated from inside Iraq, non-oil related i.e tourism.
So again, due to the recent crisis with Iran and blockage of oil transport, Iraq is talking about a devaluation. This time there is talk of a deeper change than ever even since the Covid crisis of 1320/USD to 1650/USD. Now we might all think this is not good for our investment but I would differ with you. Why would I say such a thing?
First, I have to add who really cares? Think about it. We cannot yet exchange our dinars since the dinar is not yet back on FOREX and OFAC sanctions still exist.
Second, we all should know by now that they are ‘artificially’ suppressing the rate of the dinar from its true value.
Next, in my June 11th Newsletter I presented an article that told us what the three- (3) pronged approach of Al-Zaidi was going to be to recover the economy. This news today should be of no shock for anyone. Like I said the government is always going to tell us what they plan to do. There will be no surprises, no guessing. It is titled “AL-ZAYDI’S THREE-PRONGED PLAN: LIQUIDATING INDEBTED INSTITUTIONS, RAISING THE DOLLAR’S VALUE, AND RECOVERING FUNDS FROM CORRUPT INDIVIDUALS! – THE FRAMEWORK APPROVES THE GOVERNMENT’S PLAN TO OVERCOME THE FINANCIAL CRISIS.” The most intriguing point in Al-Zaidi’s plan concerns the exchange rate. Sources speak of a proposal to raise the dollar’s value again, without disclosing the rate proposed by the Prime Minister during the meeting. Today we find out what the rate will most likely be.
Please take a peek at a couple of today’s articles also on this subject matter titled:
“AL-KINANI REVEALS A GOVERNMENT PLAN TO RAISE THE DOLLAR EXCHANGE RATE TO 165,000 NEXT SEPTEMBER”
and
“THE GOVERNMENT WILL BE FORCED TO CHANGE THE EXCHANGE RATE AFTER THE COUNTRY’S ECONOMIC DOWNTURN”
“On Sunday (June 21, 2026), MP Ahmed Salim Al-Kinani, from the State of Law Coalition, revealed an anticipated government plan to raise the exchange rate of the US dollar to between 160,000 and 165,000 Iraqi dinars per 100 dollars, instead of the current rate of 132,000 dinars.”
This devaluation is still within the realm of the local currency only, the intentional manipulated dinar. It is not yet going to FOREX. We will need the FOREX rate to be what they have been forecasting to be over $3 not some in-country manipulated rate based solely on the price of the dollar which is also tied to the price of oil. Remember that the petro-dollar is being backed by oil and pure speculation. This is what is holding up the USD dollar at this time. We all know that the solution to the dinar is to get off this sole peg to the dollar which keeps dragging it down when there are hiccups in the oil industry.
So, from what I just told you, what do many of the economic experts in Iraq and the citizens in Iraq feel getting off the dollar is the answer, which they feel will then need to remove the zeros and bring an increase in purchasing power? Of course, they feel its to get off the sole peg to the dollar. Any reasonable and sane person would think this….right?
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/