Billions In Fines… Has The Central Bank Launched A Bank Purge?
July 27, 2025 Last updated: July 27, 2025 Al-Mustaqilla/- In a move that has raised many questions within banking circles, the Central Bank of Iraq has begun implementing financial sanctions on a number of private banks and exchange companies.
This is part of a campaign aimed at correcting the course of the banking sector, which is facing increasing criticism regarding poor compliance and exchange rate manipulation.
According to a schedule published yesterday afternoon, the value of fines imposed on banks and exchange companies amounted to more than 24 billion Iraqi dinars uring the second quarter of this year.
This figure reflects the extent of accumulated violations in the local banking market,which observers believe pose a direct threat to the stability of the currency and the policies of the Central Bank. An informed source revealed to Al-Mustaqilla that these sanctions come within the context of a broader movement that began to take shape following a recent meeting in Istanbul between a delegation from the Central Bank of Iraq and a US Federal Reserve official.
The move comes after the “Istanbul meeting.”
The meeting, according to leaks, witnessed a heated discussion about Iraq‘s commitment to international standards for combating money laundering and terrorist financing, with threats of new sanctions that could affect the Iraqi banking sector unless urgent reform measures are taken.
Will Iraq witness the withdrawal of bank holidays soon?
Economic sources indicate that the recent sanctions may be a preliminary step toward revoking the licenses of some banks and exchange companies that have failed to comply with regulations and instructions, particularly those involved in dollar smuggling or manipulation of exchange rates on the parallel market.
Observers expect the coming days to witness a broad audit campaign led by the Central Bank, in coordination with regulatory and security agencies, to control banking performance and address the chaos that has contributed to market turmoil and undermined public confidence.
Message to banks: comply or exit the market
The Central Bank‘s latest move could be a clear message to financial institutions: “Commitment first,” as the Iraqi government seeks to assert state sovereignty over the financial sector and distance itself from political pressures and vested interests that have hindered sector reform for years. Experts believe that the success of these measures depends on serious implementation, and not just financial fines, but also holding those responsible for violations acountable and withdrawing banking privileges from the parties involved. https://mustaqila.com/غرامات-بالمليارات-هل-بدأ-البنك-المركز/
Trump & Crypto: Will Bitcoin’s Success Translate to the Iraqi Dinar?
19th July 2025 in Investment, Iraq Banking & Finance News By Guest Blogger. https://www.iraq-businessnews.com/custom-search/?searchtext=%22guest+blogger%22&swcfpc=1
Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.
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 infrastructuremake 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.
https://www.iraq-businessnews.com/2025/07/19/trump-crypto-will-bitcoins-success-translate-to-the-iraqi-dinar/
