Iraq Reports on Status of IQD Revalue - July 2025

Six months into Donald Trump’s second term as U.S. President, speculation on the Iraqi dinar’s value continues—but reality and market fundamentals remain in the driver’s seat. Many investors had expected a massive revaluation—some even anticipating increases of 1,000 times the current rate within the first 100 days. However, those predictions have not come to pass, and it’s a good time for a grounded reassessment.  (Iraq Business News).

Data shows that most early believers in the revaluation theory were disappointed; the dinar remains stable at around IQD 1,300 per U.S. dollar, with no dramatic upward movement. While optimism about a future boost is understandable—supported by Iraq’s enormous oil resources and potential long-term growth—experts emphasize that revaluation depends on structural reforms, economic stability, and decisions made by Iraq’s Central Bank and the International Monetary Fund (IMF).

That said, there are positive developments underway. The Central Bank of Iraq, backed by a USD 5.34 billion support package from the IMF, is working toward improved financial management and banking sector reform. These efforts strengthen the foundation for sustainable growth, even if currency revaluation isn’t immediate. Meanwhile, Iraq is expanding digital payments systems, increasing financial inclusion, and modernizing its economic framework—steps that could benefit the economy and, in time, the currency’s credibility.

Geopolitical dynamics under Trump’s administration add another layer of complexity. Iraq remains in a delicate balance: it receives military and diplomatic support from the U.S., while maintaining economic and political ties with Iran. This delicate position influences investor expectations. Strong U.S.–Iraq security cooperation aims to stabilize the region, while economic partnerships—especially in energy—are carefully managed to avoid triggering sanctions or friction.

To summarize, although enthusiasm around an instant revaluation has cooled, Iraq’s future still offers reason for cautious optimism. The foundations of economic reform, IMF support, and gradual modernization are encouraging. But for now, the dinar remains at its established rate rather than skyrocketing. The lesson is that meaningful currency recovery is tied more to broader economic and political progress than to speculative timelines.