Here's What Iraq Must Do to Increase the Value of the IQD - Happy Holidays IQD Investors (2025)
1. Reduce the Amount of Currency in Circulation
Too many dinars chasing the same goods weakens value. Wath Channel's Video on Reducing the Number of Dinars in circulation. The Central Bank of Iraq (CBI) has already started doing the right thing by reducing currency in circulation.
Why this matters:
Signals discipline to global markets
This is one of the most important steps, and Iraq is actively doing it now.
2. Strengthen the Banking System
Iraq must continue modernizing its banks:
Use digital payments instead of cash
Fully integrate with SWIFT
Why this matters:
Foreign investors will not bring money into a country with weak or opaque banks. Strong banks = confidence.
3. Maintain Political Stability? This is Always a Concern
Currency value is tied to trust.
Iraq must:
Limit militia influence
Maintain a functioning government
Avoid internal conflict
Why this matters:
Markets hate uncertainty. Stability supports currency strength.
4. Grow the Economy Beyond Oil
Oil is powerful—but risky if it’s the only pillar.
Iraq needs:
Agriculture expansion
Manufacturing growth
Infrastructure investments create more reliable and strong streams of annual income.
Iraq's has improved in the development of more manufacturing, and infrastructure
5. Increase Foreign Reserves & Exports
Strong currencies are backed by strong reserves.
Iraq must:
Build USD and gold reserves
Export more than it imports
This directly supports a stronger exchange rate.
Iraq has around $100 billion in foreign currency reserves.
6. Meet International Monetary Standards 📜
Full compliance with the International Monetary Fund (IMF) signals credibility.
Why this matters:
IMF trust = global investor trust = stronger currency.
7. Allow the Dinar to Reflect Reality (Exchange Rate Reform) ⚖️
Once the fundamentals are in place:
Iraq can adjust its exchange rate
The dinar reflects real economic strength, not artificial control
This is typically this is the final step, not the first.
The Bottom Line (Plain Truth)
Iraq does not raise its currency by announcing it.
It raises its currency by:
✔ Reducing excess dinars
✔ Strengthening banks
✔ Stabilizing government
✔ Growing the economy
✔ Building reserves
✔ Following global rules
When these boxes are checked, currency appreciation becomes inevitable, not speculative.
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