I wanted to come today and dispel many current trends and rumors about an RV in Iraq. No, the Central Bank “official” rate has not changed. It is still 1310-1320 Iraqi Dinars = 1 US Dollar. Also, I can tell without a shadow of a doubt that the newer lower denominations have not yet been distributed in Kurdistan.
If the lower denominations were issued, why would someone, anyone in Iraq not take a picture of the newer notes and publicize them? I will tell you why. Because they are NOT issued. Is this so hard to understand? Wouldn’t the CBI itself publish a change to the official rate and why does it not yet show pictures and security features of these new notes on the CBI site?
The news today is mostly all about the digital transformation and the Digital Payment Regulation No.2 of 2024. You might want to take a look article titled “THE TURNING POINT: IRAQ’S LEAP INTO THE DIGITAL ECONOMY”. We learn that the article tells us that this new law is beyond compliance: This is as a shift towards better financial inclusion. I quote from the article “The Central Bank of Iraq (CBI) has set a clear direction: digital payments are now an essential part of Iraq’s economic future. With funding from the United States Agency for International Development (USAID) in Iraq, and support from the United Nations Development Program (UNDP) Iraq, this regulation is a catalyst for ensuring that digital transactions are accessible not only to urban business hubs but also across diverse sectors, bridging public and private financial landscapes.” Iraq’s transition to digital payments will unlock a range of economic benefits and I am told by my CBI contact that this is the precursor to the Project to Delete the Zeros. Let’s all keep an eye for what happens when Iraq finally makes this huge transition away from using purely cash to all digital.
You should read the following article titled “A BIG DILEMMA” AWAITS THE IRAQI BANKING SYSTEM.. ECONOMIST”. On Tuesday, the economic expert, Mustafa Akram, expected that Iraq would enter a good economic phase with the arrival of Trump, and while he indicated that the banking system would face a “major dilemma,” he confirmed that Iraq responds to crises and lacks control and command.
You should read the following article titled “WAYS YOU NEVER THOUGHT OF.. JUDGES REVEAL METHODS OF SMUGGLING HARD CURRENCY” In it we learn that several judges and legal experts spoke about the latest methods of smuggling US Dollars out of the country, pointing out that currency smugglers have developed their means and methods of smuggling money. Remember the dollar is being stripped from Iraq and the merchants will no longer go to a currency auctions window to exchange Iraqi Dinar for US Dollars. Instead this exchange will be accomplished by “correspondent” banks and done all electronically utilizing the new digital ability of the Iraqi banking system. Yes, this is huge and I can’t emphasize it enough that the transformation of Iraq is happening right in front of our noses. If you recall for the last decade the plan was always to go digital but Iraq could not easily do it. The mantra of using all cash and the anxiety of not having it in your grimy little hands was new to the citizens of Iraq. However, as we watched the transformation happen, especially since January 2023, we can clearly see now what this is all going to lead to.
Please do yourself a favor and do not rely on any single event to give you the RV event you are looking for. This is pure speculation and so why not base your beliefs on FACTS rather that RUMORS.
So, there is lots of news coming out of Iraq but I wanted to limit it to pertinent information related to the RV and Reinstatement. We know that rebels ousted Syrian leader Assad out of the county into exile. What is the impact on Iraq? We know that any event significant as this will have rippling effects on the middle east and probably the world. I am not totally convinced that getting rid of Assad was such a good idea as it will cause come instability in the region unless they can replace him quickly. I do not yet know all the details but I will ask many questions tomorrow to my CBI contact on this subject matter in the hopes of learning more from someone closer to the situation.
So we know that the currency auctions will end, at the end of the year. Yes, in about 3 weeks. We still look forward to the initiation of the Project to Delete the Zeros, if in fact the CBI does intend to reinstate the Iraqi Dinar back on FOREX. There is nothing we can do but relax and wait.
