Quote: “They emphasize that the fundamental problem with the dinar today is not its market value, but rather that Iraq remains ‘blocked’ from the global exchange market, and that adopting Basel III-ICAAP and ISO 20022 standards is what will pave the way for gradually lifting this blockade…Now, with banks required to disclose their actual capacity to absorb shocks, the pretext that prevented major international dealers from dealing directly in dinars is diminishing. In this context, experts believe that Iraq is nearing the end of the ‘forced peg’ of its exchange rate, which effectively began in October 2021 when it was announced that ‘the rate will remain fixed until 2025.’ With this date approaching and the technical requirements for monetary reform being finalized, some believe that Iraq may be entering a new phase that might not be a direct revaluation of the dinar, but which will at least pave the way for a more stable and transparent exchange market.” [Post 3 of 3]
