10 Factors That Could Support or Trigger an IQD Rate Increase

1. Central Bank Exchange-Rate Action

The Central Bank of Iraq could adjust the official exchange rate of the Iraqi dinar. Because the IQD operates under a managed exchange-rate system, decisions by the CBI can directly influence its official value.

2. Stronger Economic Growth

A growing Iraqi economy could strengthen the foundation supporting the dinar. Increased business activity, employment, investment, and government revenue can improve confidence in Iraq's economy and currency.

3. Growth in Iraq's Non-Oil Economy

Iraq remains heavily dependent on oil. Expanding agriculture, manufacturing, transportation, tourism, technology, and other industries could create a more diversified economy and reduce Iraq's dependence on oil revenue.

4. Increased Foreign Investment

Major foreign companies investing in Iraqi businesses, infrastructure, energy, transportation, and development projects could bring additional capital into the country and increase international confidence in Iraq's economy.

5. Banking and Financial Reforms

Modernizing Iraqi banks, improving compliance with international standards, strengthening anti-money-laundering controls, and connecting more Iraqi banks with the international financial system could improve confidence in Iraq's financial sector.

6. Higher Oil and Export Revenues

Iraq is one of the world's major oil producers. Strong oil exports and higher government revenues can increase Iraq's foreign-currency reserves and strengthen the country's overall financial position.

7. Lower Inflation and Greater Price Stability

Keeping inflation under control protects the purchasing power of the dinar. Stable prices combined with responsible monetary policy can help maintain confidence in the currency.

8. Greater Demand for the Iraqi Dinar

If Iraq develops more international trade and investment that requires transactions in dinars, demand for the IQD could increase. Greater legitimate domestic and international use of a currency can contribute to its strength.

9. Political Stability and Improved Security

Greater political stability, stronger institutions, improved security, and predictable economic policies could make Iraq more attractive to international businesses and investors. Increased confidence can indirectly support the currency.

10. Successful Major Economic and Infrastructure Projects

Large projects involving ports, railways, highways, energy, international trade corridors, and industrial development could increase Iraq's economic output and international trade. If these projects generate substantial new revenue and investment, they could improve the economic fundamentals supporting the dinar.

Important: None of these developments guarantees a dramatic increase in the IQD. A stronger Iraqi economy and banking system can create conditions that support the dinar, but the actual exchange rate ultimately depends heavily on the Central Bank of Iraq's monetary and exchange-rate policy.

Supporting Documentation

Central Bank of Iraq — Exchange Rate & Monetary Policy: The CBI states that exchange-rate policy falls within its monetary-policy responsibilities. It also discusses inflation, reserves, and exchange-rate stability.
Central Bank of Iraq statement

IMF — Iraq 2025 Article IV Consultation: This is probably the best single source for your article. It covers banking reform, monetary policy, the official/parallel exchange-rate spread, correspondent banking, private-sector growth, governance, non-oil growth, and financial-sector reform.
IMF 2025 Iraq Article IV Report

World Bank — Iraq Economic Diversification: The World Bank explains Iraq's heavy dependence on oil and why economic diversification, private-sector development, investment, and structural reforms are important for sustainable growth.
World Bank — Iraq Economic Monitor

U.S. Energy Information Administration — Iraq: This is an excellent source for the oil portion of the article. The EIA reports that oil exports account for a very large share of Iraqi government revenues and provides information about Iraq's production and exports.
U.S. EIA — Iraq Country Analysis

World Bank — Diversification and Growth: This report discusses Iraq's need to move from oil dependence toward diversification, regional/global integration, private-sector development, better governance, and sustainable growth.
World Bank — Breaking Out of Fragility