The Dinar Is Recovering And The Exchange Rate Is Declining Towards The Official Rate.
Samir Al-Nusairi For several months in 2025, the US dollar exchange rate has continued to decline against the Iraqi dinar, recovering by around 13 points.
It is expected to gradually decline to approach the official exchange rate during the coming period of this year, in accordance with the Central Bank’s strategy and ongoing measures for comprehensive banking reform, regulating foreign trade financing, and transitioning to direct dealings between our banks and correspondent banks, in addition to complying with international banking standards.
Restricting the sale and distribution of cash dollars to a strict mechanism has been praised by the International Monetary Fund and the US Treasury as a successful and advanced method and application for controlling the stability of the US dollar exchange rate and keeping cash dollar sales to a minimum, thus preventing the circulation of the currency from being available for speculation in the parallel market.
To support the dinar’s recovery,”we must look at the rate at which the Central Bank covers all external transactions, including imports and personal transfers.
This explains price stability, given the current inflation rate, which is less than 2.5%, lower than the inflation rates in neighboring countries.
This means that the Central Bank has achieved two basic monetary policy objectives:
controlling exchange rates and curbing inflation.”
This confirms that the wise monetary policy adopted by the Central Bank has contributed significantly to the stability of the exchange rate and the decline of the parallel market to the lowest possible level.
The Central Bank‘s insistence and cooperation with the government during the second half of the current year will lead to a gradual decline in the exchange rate of the US dollar, which has been stable for two days at the thirties and is moving towards the official exchange rate. https://economy-news.net/content.php?id=57749
The US Has Stopped Sending Cash Dollars To Iraq. Is This The Beginning Of A Blockade?
July 21, 2025 Al-Mustaqillah/- Private sources confirmed that the United States has decided to completely halt cash dollar shipments to Iraq, a move described as potentially the beginning of a “financial blockade” on some Iraqi banks involved in currency smuggling and money laundering.
According to a source who spoke to Al-Mustaqilla on condition of anonymity, Washington’s decision does not pertain to Iraq as a country, but rather targets specific banks suspected of involvement in suspicious dollar transfers to countries subject to international sanctions. This has angered the US Treasury, prompting it to tighten controls on dollar movement within the Iraqi market.
Sudden drop in exchange rate after the decision
Remarkably, the US decision coincided with a significant decline in the dollar exchange rate in the Iraqi market.
Experts interpreted this as a natural consequence of the restrictions on the circulation of cash and the prevention of its smuggling abroad. This led to an increase in supply in the local market and a temporary decline in its price.
Government shift towards “legal dollarization”
Separately, a banking source revealed that the Iraqi government has been relying on
new mechanisms for disbursing salaries and conducting financial transactions for months.
These mechanisms involve legal invoices processed through official banks and digital platforms linked to the global financial system. This is an alternative to the paper dollar shipments previously transported into the country by air.
The source indicated that this step represents a major shift in cash liquidity management in Iraq,
making it difficult for suspicious entities to continue smuggling or manipulating the currency market.
Is this the beginning of the storm?
The US decision raises many questions about the future of dollar transactions in Iraq,
especially in light of escalating regional tensions and Washington’s tightening of financial sanctions.
Are we witnessing the beginning of a new phase of international restrictions on the Iraqi economy?
Or is this merely a technical measure against some violating banks? https://mustaqila.com/أمريكا-توقف-إرسال-الدولار-النقدي-إلى-ا/
Government Advisor: Iraq Is Witnessing Vital Stability And Is Moving Towards Diversifying Its Revenues Away From Oil.
Baghdad – INA – Nassar Al-Hajj The Prime Minister’s financial advisor, Mazhar Mohammed Salih, confirmed on Tuesday that Iraq is working to build a sustainable revenue base independent of oil market fluctuations. He noted that the government has launched a reform package to boost non-oil revenues, indicating that Iraq is experiencing vital stability that offers broad opportunities for progress. Saleh told the Iraqi News Agency (INA):
“Internal stability is today a fundamental pillar in the Iraqi government’s efforts to enhance the investment environment and sustainable development.
Reliable international reports, most notably Iraq‘s stable credit rating, clearly indicate a marked improvement in the investment climate and confirm Iraq‘s ability to withstand regional challenges, which sends positive signals to global markets and donors.”
He added, “The ongoing development transformations have contributed to reviving dozens of major, stalled projects, and the adoption of a government program based on providing services has created an attractive investment climate for the first time in years.”
He continued, “This progress comes after the country overcame a difficult period of crises, including security Challenges, waves of violence and terrorism, as well as the repercussions of health crises and sharp declines in oil prices over the past decade.”
He explained that “the current phase represents a pivotal shift in Iraq’s political and economic history, as it is witnessing a vital stability that provides broad opportunities for progress, despite the surrounding geopolitical risks.”
He added, “What distinguishes this stability is its superiority over its turbulent regional environment, reflecting the strength of national cohesion and the restoration of the effectiveness of the social contract, both economic and political.”
He pointed out that “these combined indicators give Iraq a real opportunity to build a more stable and prosperous future, free from the burdens of the past, and qualified to become a pivotal player in the regional and international economy.”
He explained that “the fundamental reforms in the government’s program aim to diversify sources of national income and enhance the state’s efficiency in collecting its financial dues without imposing unjustified additional burdens on citizens. This is a prerequisite for achieving long-term economic stability.”
As part of its drive to diversify sources of income and achieve financial sustainability, the Prime Minister’s advisor emphasized that “the government has sought to implement a package of fundamental reforms aimed at increasing non-oil revenues and reducing reliance on volatile oil revenues.
These reforms include:
reforming the tax system by expanding the tax base,
automating collection,
combating tax evasion, and
simplifying procedures.”
He continued: “The government also sought to enhance fees and service revenues by reviewing the pricing of government services, increasing collection efficiency and activating electronic payment and collection, so that cash flows into the unified government account became ore transparent, efficient, and governed.
It also modernized the customs system, unified tariffs, automated border crossings, and combated smuggling and border violations through a digital framework in cooperation with international technical bodies, especially the United Nations.”
He pointed out, “The importance of the state’s approach to reforming public companies, through restructuring, strengthening partnerships with the private sector, and achieving profitability, in addition to the trend towards productive investment in public property, through inventorying and activating the state’s assets and its unused assets, and settling illegal occupations, as well as improving revenues from the telecommunications sector by amending company contracts, imposing taxes on data, expanding the digital infrastructure, and activating local financing tools, particularly in issuing local government development bonds, and establishing various development financing funds.”
Saleh emphasized that “the government is working to build a sustainable revenue base independent of oil market fluctuations, supporting economic growth plans and enhancing the country’s financial stability, which is the primary goal of prosperity and the essence of economic reform.”
He concluded by saying: “The achievements made over the past two years represent an important path for Iraq’s transition to an advanced stage of stability and sustainable development.
It is a challenging model that combines the two conditions (stability and development) on the basis of rapid progress simultaneously, despite the enormous international and regional geopolitical challenges,
and compared to the two difficult decades that our country has gone through.” https://ina.iq/ar/economie/239224-.html
Expert: Buying Real Estate Abroad Is A “Front For Money Laundering” And The Reason Iraqis Are The Dominant Players In Some Countries.
Baghdad Today – Baghdad Anti-corruption expert Saeed Yassin Musa confirmed on Wednesday (July 23, 2025) that purchasing real estate abroad has become one of the approved methods for money laundering, which explains the Iraqi nationality’s dominance in real estate purchases in some countries in the region.
In an exclusive interview with Baghdad Today, Moussa said, “The phenomenon of money laundering through the purchase of real estate abroad is on the rise, which poses a real threat to the Iraqi economy and threatens the country’s financial integrity system.”
He explained that “some parties involved in financial corruption are exploiting legal loopholes and weak external oversight to transfer stolen public funds into real estate investments in various countries.”
He added, “These operations are not limited to money smuggling alone, but also contribute to depriving the Iraqi economy of liquidity and local investment, which deepens its economic crises.”’
He emphasized that “the Iraqi government and relevant oversight bodies are required to activate financial tracking mechanisms and international cooperation, particularly with countries with strict laws against money laundering.”
The anti-corruption expert noted that “remaining silent about this phenomenon will strengthen corruption networks and undermine opportunities for development and reform, something Iraq cannot tolerate at this critical stage.”
Specialized reports indicate that real estate investment abroad has become one of the most prominent means of money laundering in Iraq, especially after restrictions on bank transfers were tightened.
These investments are often registered in the names of brokers or shell companies to conceal the stolen funds.
Iraqi nationals have ranked first among several regional countries in real estate purchases in recent years, raising questions about the sources of these funds, particularly in light of the escalating reports of widespread financial corruption and money laundering since 2003. https://baghdadtoday.news/279228-.html
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