Five Key Iraqi Dinar Revaluations Against the US Dollar Since 1968
Few currencies tell a nation’s story as vividly as the Iraqi dinar. Once among the world’s strongest, valued at four US dollars, it later collapsed to the point where one dollar bought 3,000 dinars.
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Today, at 1,310 to the dollar, the dinar is more than an exchange rate; it is a mirror of Iraq’s turbulent modern history.
Stage One: Founding (1931–1968)
The dinar was born in 1931 with the Iraqi Currency Board in London. In 1947, Iraq established the National Bank, later renamed the Central Bank of Iraq. This was more than a financial step it was a declaration of sovereignty, giving Iraq its own currency at a time when newly independent states sought symbols of nationhood.
Stage Two: The Golden Age (1968–1988)
From the late 1960s to the late 1980s, the dinar lived its golden age.
- 1968–1979: 1 IQD = $4 (100 USD = 25 dinars).
- 1980–1988: 1 IQD ≈ $3.3 (100 USD = 28 dinars).
Fueled by oil revenues, Iraq’s currency symbolized prosperity and power. For ordinary Iraqis, it was not just money in their pockets but proof that their country could stand strong on the world stage.
Stage Three: Collapse and Fragmentation (1990–2003)
Wars, sanctions, and economic isolation shattered that strength. After the invasion of Kuwait and the Gulf War, the dinar plummeted. Two currencies circulated the “Swiss dinar” in Kurdistan and heavily devalued notes elsewhere.
By the mid-1990s, 1 USD = 3,000 IQD (100 USD = 300,000 dinars).
This collapse was more than economic. It destroyed savings, eroded trust, and turned the dinar into a daily reminder of hardship and international isolation.
Stage Four: Post-2003 Fragile Stability
Following the 2003 US-led invasion, Iraq introduced new notes and began stabilization efforts.
- 2006–2008: The dinar appreciated almost 20% to around 1,200 per dollar.
- 2010–2011: The rate stabilized at 1,166 per USD, offering rare predictability.
Yet fragility persisted. Black market pressures often drove the dollar higher than the official peg. In 2020, with oil revenues collapsing, Iraq sharply devalued the dinar to 1,460. In February 2023, the Central Bank revalued to 1,300 per USD, aiming to restore confidence. But in practice, parallel markets continued trading above 1,400.
Beyond Numbers: The Dinar as a Shared Fiction
Currencies, as historian and author Yuval Noah Harari reminds us, are shared fictions, stories people choose to believe in. The Iraqi dinar’s history shows what happens when that collective faith falters, and how fragile yet vital it is to rebuild.
Each revaluation, from the $4 peak in the 1970s to the 1,300 peg in 2023, was not just a technical adjustment. It was an attempt to reclaim trust, to remind Iraqis that their state could still hold the line against chaos.
The dinar’s journey is not only about money. It is about Iraq’s struggle for sovereignty, resilience, and the fragile hope that, one day, the story told by its currency will once again be one of strength.
Central Bank of Iraq Controls Cash Supply, Prevents Dollar Appreciation
Ali al-Alaq, the Governor of the Central Bank of Iraq (CBI), has denied any talks to adjust the value of the dinar against the dollar, saying the country's foreign exchange reserves have reached $100 billion.
al-Alaq said that the reason Iraq experiences the “lowest level of inflation” is due to “successfully controlling the movement of cash.”
He noted that the daily balance between demand and supply of dollars has been achieved.
"Through several channels and electronic platforms for foreign remittances, we have been able to control the supply of cash and prevent the appreciation of the dollar. The process is under global scrutiny," al-Alaq added.
Foreign Exchange and Gold Reserves
Iraq’s Central Bank governor remarked that the country’s foreign exchange reserves total $100 billion, while gold reserves are valued at 22.8 trillion dinars.
Official vs. Black Market Rates
The history of the Iraqi dinar against the US dollar has passed through four main stages: from the golden age, when one dinar was four dollars, to the collapse, when one dollar reached three thousand dinars.
Although the Central Bank has always set the official price, the black market price has always been higher due to high demand and smuggling. In the latest decision, the Central Bank fixed the official exchange rate of 100 dollars at 132,000 dinars in February 2023, but the markets have always been above 140,000 dinars.
Official comment on the dollar exchange rate and foreign remittances
Central Bank Governor Ali Al-Alaq announced that there is no discussion betweenIraqi governmentThe Central Bank regarding the amendment of the current official exchange rate of the dollar inIraq.
Al-Alaq added: "We are working to open channels for foreign transfers in a way that does not affect the exchange rate. There is a revolution in the foreign transfer process via electronic platforms subject to international auditing. We now have more than one auditing company, and over time, we have been able to overcome obstacles and achieve smoothness. The number of users through financial transfer channels has expanded to thousands of transactions, after it was limited."
He pointed to "the implementation of two plans to reform the banking sector in Iraq to rebuild the government banking sector and private banks," explaining, "We have made great strides towards creating a stable banking sector capable of contributing to the Iraqi economy and keeping pace with digital transformations in the world. Within the next five years, we will see a different banking sector in Iraq."
The official exchange rate of the dollar in Iraq is 1,320 dinars per US dollar, while its price in the parallel market is 1,400 dinars per dollar.
Parliament's agenda for next Wednesday's session
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The Presidency of the House of Representatives announced, today, Monday (September 29, 2025), the agenda for next Wednesday's session.
The table that was received by Baghdad Today included 11 paragraphs, as shown below:
Session No. (8)
Wednesday, October 1, 2025
Reciting Verses from the Holy Quran
First: Voting on the proposed law amending the third law to the Law on Compensating Victims Who Lost Body Parts Due to the Practices of the Former Regime No. (3) of 2009 (Martyrs and Victims Committee, Legal Committee) (1 article).
Second: Voting on the proposed law amending the first law to the National Nuclear, Radiological, Chemical and Biological Regulatory Commission No. (1) of 2024 (Health and Environment Committee), (1 article).
Third: Voting on the draft law regulating renewable energy (Electricity and Energy Committee, (23 articles).
Fourth: Voting on the draft law on mental health (Health and Environment Committee, Legal Committee) (1 article).
Conclusion: Voting on the draft law ratifying the agreement on the encouragement and mutual protection of investment between the government of the Republic of Iraq and the government of the Kingdom of Saudi Arabia (Foreign Relations Committee, Investment and Development Committee) (1 article).
Voting on the draft law to join the Republic of Iraq to the Convention on International Exhibitions signed in Paris in 1928, supplemented by the protocols of 1948, 1966, 1972, and their scientific references (1982 and 1988) (Foreign Relations Committee) (1) Article)
Suleiman voting on the draft law amending the Fourth Industrial Investment Law for the Private and Mixed Sectors No. (20) of 1998 (Investment and Development Committee) (Economy, Industry and Trade) (1) Mecca
Excellent voting on the draft law amending the First Amendment to the Civil Defense Law No. (12) of 2013 (Security and Defense Committee) (Legal Committee) Mecca
Tenth: Voting on the proposed law regulating the trade unions of workers and craft employees (Labor Committee and Civil Society Organizations). (49 articles).
Eleventh: Voting on the draft law regulating the rights of victims of Ibn al-Khatib Hospital, victims of al-Naqa Center, and victims of the al-Hamdaniya incident. Martyrs, Victims, and Political Prisoners Committee (4 articles).
The session begins at 1:00 PM.
A government agency reveals that nearly one million Iraqis are employed in investment projects.
The head of the National Investment Commission, Haider Makiya, revealed on Monday that job opportunities have been provided to thousands of Iraqis in investment opportunities across the country.
"Increasing investment opportunities in Iraq will positively impact the stability of the exchange rate, contribute to market stability, and provide job opportunities for the unemployed and graduates," Makiya told Shafaq News Agency.
He added, "The National Investment Commission's first-phase projects have provided more than 200,000 job opportunities for Iraqi youth,
while the number of workers in other investment projects across various governorates has reached approximately 950,000 young people."
The head of the National Investment Commission, Haider Makiya, revealed on Monday that job opportunities have been provided to thousands of Iraqis in investment opportunities across the country.
"Increasing investment opportunities in Iraq will positively impact the stability of the exchange rate, contribute to market stability, and provide job opportunities for the unemployed and graduates," Makiya told Shafaq News Agency.
He added, "The National Investment Commission's first-phase projects have provided more than 200,000 job opportunities for Iraqi youth, while the number of workers in other investment projects across various governorates has reached approximately 950,000 young people."
Makiya pointed out that "investment represents a fundamental pillar of sustainable development in Iraq," explaining that "increasing investment opportunities will contribute to establishing multiple projects and developing infrastructure, in addition to reducing public expenditures."
In a speech delivered at the Iraq Investment Forum, held over the past two days in Baghdad, Prime Minister Mohammed Shia al-Sudani announced investment opportunities worth $450 billion across various sectors in Iraq.
Al-Sudani continued, saying: We launched the Riyada initiative, in which more than 500,000 young men and women participated, and trained 92,000, who produced 12,000 new projects from loans and (20) thousand job opportunities.
Al-Sudani's office: American companies have turned to investing in Iraqi oil and gas fields.
The Iraqi Prime Minister's Office revealed on Monday, September 29, 2025, that American companies are interested in investing in oil and gas fields in Iraq, while also stating that several investment opportunities have been referred to international and local companies.
Ali Razouki, Deputy Director of the Prime Minister's Office and Chairman of the Supervisory Committee of the Iraq Investment Forum, said in a statement followed by Al-Jabal that "the Iraq Investment Forum has witnessed remarkable successes by attracting major international companies in the fields of oil, industry, agriculture and other investment sectors." He explained that "this success reflects the security and economic stability that Iraq enjoys, which creates an attractive environment for investors."
He added, "The National Investment Commission previously indicated its success in attracting no less than $100 billion in local and foreign capital, but this figure is expected to rise steadily after the forum."
He continued, "The forum included dialogue sessions with a number of specialists to explain Iraq's investment philosophy and the directions of the relevant ministries, in addition to holding workshops that highlighted available investment opportunities in cooperation with relevant companies." He emphasized that "the forum resulted in the referral of several investment opportunities to international and local companies, which is a tangible achievement."
Razouki pointed out that "after this forum, Iraq witnessed widespread competition among companies for investment opportunities," explaining that "areas that were globally classified as 'Red Zones' are now open to investment after doubts about them were removed."
He noted that "American companies have headed to Anbar province to invest in some oil and gas fields," stressing that "the coming period will witness increasing activity in this direction."
International Report: Iraq Enters an Era of Comprehensive Economic Transformation
As Iraq enters a "new era," it is rapidly pushing forward strategic initiatives for economic development and making it attractive to global investors. This includes strengthening electronic payment systems, comprehensive banking reforms, modernizing the financial sector, enhancing transparency, and reducing reliance on cash transactions, according to the World Travel and Tourism website.
The report, translated by Shafaq News Agency, stated that Iraq seeks, through the implementation of progressive policies, to diversify its economy away from oil and encourage foreign investment, with the aim of consolidating its position as a competitive hub for trade and innovation in the region.
The New York and Calcutta-based website added that what Iraq is witnessing represents a "transformative journey, with Baghdad at the heart of a national reconstruction initiative that signals a new era of stability and growth."
He noted that years of conflict have damaged Iraq's infrastructure and caused economic instability and social unrest. However, Iraq is today witnessing signs of tangible progress, from the establishment of modern cities to the improvement of public services, reflecting its commitment to rebuilding its economy, attracting foreign investment, and promoting long-term development.
The report noted that an ambitious transformation is taking place through reconstruction, with neighborhoods being modernized and their roads, transportation networks, and urban facilities being developed, in addition to public spaces, housing, healthcare centers, and educational institutions, all with the goal of improving the quality of life for citizens.
The report continued, "The focus on supporting a dynamic urban economy and comprehensive urban renewal indicates a shift not only toward renovating the city, but also shaping it into a hub for business, trade, and innovation."
The report emphasized that economic reforms have played a pivotal role in shaping Iraq's investment landscape, pointing, for example, to the implementation of the "single window for business registration" system, which has simplified procedures, allowing new businesses to start more quickly and with fewer bureaucratic procedures.
In a parallel context, the report noted the implementation of banking reforms and the expansion of electronic payment systems, which contribute to the development of financial transactions, reduce reliance on cash transactions, and enhance transparency. These steps, the report described as "boosting investor confidence and demonstrating Iraq's readiness to integrate into the global economic system."
While the report noted that Iraq is actively working to diversify its economy away from oil, it explained that it is seeking to attract emerging sectors such as technology, infrastructure development, renewable energy, and financial services. This has attracted the interest of international companies, as investors increasingly recognize the country's untapped potential and its advanced investment environment, which represent an opportunity for long-term returns.
According to the report, the improved security situation has significantly improved Iraq's investment climate, with the country now enjoying a more stable environment than it has in over a decade, creating safer conditions for businesses and residents.
He explained that improved law enforcement, community engagement initiatives, and effective governance measures have reduced the risks that previously hindered economic activity.
The report considered this transformation taking place in Baghdad to be an embodiment of broader national aspirations for Iraq, particularly the government's dedication to modern governance and economic transparency, which will "pave the way for Iraq's emergence as a competitive player in regional and global markets, attract foreign companies, and encourage local innovation."
The report addressed the opportunities available to international investors, noting the country's strategic location, abundant natural resources, and commitment to development, making it a promising hub for trade, technology, and industrial growth.
He considered the ongoing reconstruction efforts in Iraq, linked to comprehensive economic reforms and improved security, to be a crucial step toward long-term prosperity.
The report concluded that the transformation taking place in Baghdad, along with national initiatives in governance, finance, and infrastructure, demonstrates Iraq's potential to transition to a sustainable, globally integrated economy, while consolidating its position as a destination for opportunity, growth, and stability.
The Ministerial Economic Council recommends issuing treasury bonds worth 5 trillion dinars to pay contractors' dues.
The Ministerial Council for the Economy recommended, on Monday, the issuance of bonds worth 5 trillion Iraqi dinars to pay contractors' dues and continue projects.
A statement issued by the Council, received by ( IQ ), stated: "Further to the statement issued by the Ministerial Council for the Economy, the Council decided to recommend to the Council of Ministers approval to issue treasury bonds worth five trillion Iraqi dinars, in order to pay contractors' dues, to ensure the continuation of projects that serve the Iraqi citizen."
Government plan to raise non-oil revenues to 20%
Hamoudi Al-Lami, the Prime Minister's advisor for industry, development, and the private sector, announced on Monday that a new platform for establishing industrial projects will soon be launched within 15 days. He also indicated that plans are being developed to increase non-oil revenues by 20 %.
Al-Lami said in a statement monitored by "Mil" that "the government is counting on the private sector to be the main driver of the national economy by investing idle capital," noting that "the volume of investments has reached $102 billion so far, while the government aims to raise it to $450 billion by 2030 as part of the development project ."
He explained that "the private sector is influential and significant in investing capital, as much of it remains outside Iraq or frozen in banks, and has not been invested in industries that require a long time to generate profits ."
He added, "Any industrial project requires at least four to five years to begin production and two to three years to generate returns, which was a challenge under previous unstable conditions." He noted that "the current situation is witnessing a revolution in the industrial sector, which will be a major driver of the economy and will provide tens of thousands of job opportunities, in addition to providing resources to the state treasury by attracting Iraqi and foreign capital ."
Al-Lami pointed out that "the government has prioritized combating administrative corruption through automation. Within the next two weeks, the Prime Minister will launch an electronic platform that will shorten the time required to obtain a license to complete the establishment of an industrial project from two or three years to just 15 days, by consolidating the required approvals from 14 to 18 entities into a single portal," according to the official news agency .
Al-Lami revealed "facilitations for bringing in foreign workers, as Syrian and Bangladeshi workers and other technical experts will now be permitted, after previously being prohibited, in order to encourage investors and remove obstacles to their projects ."
Regarding the private sector's contribution to GDP, Al-Lami stated that "non-oil revenues increased from 7% in 2020 to 14% currently, thanks to government measures and automation, with efforts to reach 20% in the coming months."
Rebaz Hamlan: Baghdad must send the salaries today or tomorrow
The Deputy Prime Minister of the Kurdistan Region of Iraq (KRG) says that Baghdad must send the money today or tomorrow.
Kurdistan Regional Government (KRG) Deputy Prime Minister Rebaz Hamlan told Kurdistan Regional Government (KRG) media that Baghdad must send the salaries today or tomorrow.
"We have fulfilled all our obligations to send the July salaries," he said.
“There is enough cash in the Erbil branch of the central bank, so it only takes a few minutes to spend the money.
The Iraqi government has decided to pay the July salaries to the Kurdistan Regional Government (KRG) on Tuesday, but the KRG has not yet handed over the 120 billion Iraqi dinars in domestic revenue on Thursday.
Iraqi Finance Minister Taif Sami signed a decree to pay the seventh month salaries of the Kurdistan Regional Government (KRG) employees on Monday, Iraqi media reported.
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direct accusation
What's behind the escalation? Washington accuses factions and the government of obstructing investment in Iraq.
Investment discourse in Iraq oscillates between two parallel images: an official one that emphasizes relative stability, procedural reforms, and a growing appetite for foreign companies, and a field one that warns of security, regulatory, and legal risks that raise the cost of risk and confuse capital behavior. This contradiction cannot be separated from Iraq's political structure since 2003, where the constitution charted a course to encourage the private sector and ensure investment protection, while the security environment has produced a different reality governed by factions and power balances.
Reports from international institutions, in turn, reveal a clear paradox: while the Iraqi economy seeks to diversify its base through energy and infrastructure projects and partnerships with major companies, global foreign direct investment indicators have continued to decline since 2024, according to UNCTAD data. This impacts the entire region, not just Iraq. Understanding this broader framework is essential for understanding the sensitivity of any statement or warning issued by major capitals or diplomatic missions. It also places the internal debate—between cautious welcome and conditional investment—in a global context of volatile risk appetite, rather than being read solely within the confines of the local landscape, according to modern political approaches.
The economic advisor at the US Embassy in Baghdad reframed the debate from a legal-security perspective when he asserted that "armed groups linked to a foreign power that can kidnap, carry out drone strikes, and even attack government officials with little accountability are driving investment elsewhere." He added that "security is not just about safety on the streets, but also about expectations and accountability under the law." He continued, "The more Iraq strengthens the rule of law, protects its institutions, and holds accountable those who use violence, the more attractive it becomes as a place to do business." This statement not only places the factions at the center of the accusation; it also indirectly criticizes the government, considering that weak legal accountability mechanisms are one of the most significant factors hindering investment opportunities, according to legal interpretations.
Adi Abdul Hadi, a member of the Coordination Framework, told Baghdad Today that the US embassy "has a habit of occasionally launching allegations and fabrications far removed from reality, serving the White House's agenda." This response reflects an attempt to shift the debate from its security dimension to a political one, portraying warnings as pressure tools rather than professional descriptions of risks. However, the experience of other markets shows that foreign companies do not separate politics from security, but rather take official government warnings very seriously and base their investment decisions on them. Comparative experiences show that the impact of warnings does not stop at rhetoric, but extends to insurance contracts and financing plans.
To prove his point, Abdul Hadi pointed out that "talk about threats from armed factions is inaccurate. The evidence is the presence of between 3,000 and 4,000 Arab and foreign companies operating in Iraq, including more than 600 Turkish companies." These numbers, while significant, require a geographical breakdown. Official data in the Kurdistan Region documents more than 3,600 foreign companies, including approximately 1,600 Turkish companies, meaning that investment is concentrated in the north more than in the center and south. This disparity reflects that the investment environment is not homogeneous, and that the overall figures may conceal varying fragility between regions. Constitutional deliberations indicate that the disparity in powers between the center and the region has contributed to an unbalanced investment map.
Abdul Hadi added, "These companies are investing in more than 20 vital sectors... while the government recently announced projects worth hundreds of billions of dollars that will flow into the country." This approach demonstrates the government's ambition to expand the economy beyond oil, but it does not necessarily translate into actual flows. Official announcements, unless reinforced by legal and legislative reforms, remain less attractive to capital, especially since UN reports have confirmed a decline in global foreign direct investment since 2024. In this context, research studies suggest that Iraq must provide exceptional incentives and guarantees if it wants to compete with more stable investment environments in the region.
Abdul Hadi emphasized that "investment can only grow in a stable environment, which is what Iraq is currently experiencing, as investment activity grows day by day." This rhetoric aligns with the official narrative but overlooks the fact that stability is measured more by the strength of institutions than by the absence of circumstantial violence. The International Monetary Fund's 2025 report indicated a relative improvement in some indicators, but at the same time warned of financial pressures and challenges related to oil price volatility. This makes the picture more like a hybrid of circumstantial gains and structural challenges. Institutional experts interpret this situation as a fragile balance that requires deeper reform.
The experience of the Saudi Investment Law illustrates this fragility. Its approval in parliament stalled despite the government promoting it as a tool to attract capital, while political blocs considered it a "colonial law." This division sent a negative signal to the markets and demonstrated that the legislative environment is not sufficiently stable to provide legal protection for investors. The challenge here is not limited to security risks, but extends to the lack of institutional consensus that disrupts capital flows. Regulatory data indicates that such divisions were a direct cause of some companies' reluctance to complete previous investments.
The overall picture is summarized by two parallel lines: an official line that speaks of stability, large business figures, and procedural reforms, and an American diplomatic line that emphasizes that the lack of accountability and weak rule of law hinder investment more than any other threat. Abdul Hadi's statements reflect a political stance that seeks to distance the security dimension from the economic issue, while the US advisor's statements reveal that the core of the problem is related to the state's ability to enforce the law and fortify its institutions. In light of this equation, the future of investment in Iraq hinges on narrowing the gap between announced opportunities and institutional guarantees. This, according to independent research estimates, is the decisive criterion for transforming Iraq from an environment of theoretical opportunities to one of realized opportunities.
Trade: Conferences with Gulf countries to activate the private sector
In line with government plans and programs designed to stimulate the private sector and enhance its role in the country's development plans, the Ministry of Commerce announced its intention to hold conferences with a number of Gulf countries with the aim of developing partnerships with the private sector and maximizing the country's financial resources.
The ministry's official spokesperson, Mohammed Hanoun, told Al-Sabah that the ministry has included in its plans and policies the activation of international economic and trade relations, in addition to launching new memoranda of understanding with a number of countries, particularly the Kingdom of Saudi Arabia, the States of Kuwait and the United Arab Emirates, to enhance cooperation and support the international private sector. He added that the next phase will witness the organization of joint conferences and seminars with these countries, which have expressed their willingness to cooperate with Iraq in this field.
He indicated that these activities will establish clear foundations for formulating policies related to international relations related to the private sector and investments, which will contribute to maximizing the country's resources without placing an additional burden on government budgets.
Hanoun explained that Iraq's recent accession to the World Trade Organization will contribute to the implementation of decisions and laws related to the economy, food security, and support for local products, in line with local market requirements. This is in line with the government's approach to prioritizing the private sector and activating it to work alongside the public sector. He confirmed that his ministry has submitted new draft laws to the House of Representatives that will strengthen international economic and trade relations.
He pointed out that the Ministry has succeeded in automating all its procedures and transitioning to digital work in various fields, particularly those related to the private sector. It has created a new electronic platform called "Al-Tajer" to facilitate the process of registering merchants and obtaining their licenses.
In the same context, the Ministry of Commerce spokesperson revealed that many Gulf investors and businessmen, most notably Kuwait, Saudi Arabia, and the UAE, have expressed their willingness to enter into investment partnerships with Iraq. He explained that digital transformation will be an attractive factor for them, as it will facilitate the formulation of plans and policies, free from complex administrative routine.
He emphasized the importance of electronic platforms, as they will enable transactions to be completed and approvals obtained within record timeframes, enhancing the investment climate while simultaneously providing international companies and investors with a more flexible operating environment.
The trigger mechanism against Iran flares up again... Baghdad is on the economic front line.
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Comprehensive UN sanctions against Iran have re-entered force for the first time in a decade, following the failure of talks between Tehran and Western powers on its nuclear program. This is a dangerous development that reshuffles the cards in the region and presents Iraq, in particular, with intertwined political and economic challenges, given its close ties with its eastern neighbor in the areas of energy, trade, and food. Iraq
, already experiencing a delicate phase of financial and service crises, views with great concern the so-called "trigger mechanism," which has reimposed previous sanctions on Iran more severely, at a time when it imports nearly 40% of its gas and electricity needs through the eastern border, in addition to its reliance on importing a significant portion of food commodities and raw materials from the Iranian market.
Political analyst Abdul Ghani Ghadhban warned of the repercussions of these developments, noting that "the trigger mechanism will automatically lead to the reimposition of previous sanctions on Iran in a harsher and broader manner, which will directly impact the entire regional economy, especially Iraq, given the depth of its trade and economic relations."
Ghadhban added to Al-Mada that "Iraq imports food and basic supplies from Iran, in addition to gas used in electricity generation, at a time when it is facing a fragile economy that is heavily dependent on these imports."
Double risks.
Iraqi concerns are not limited to the commercial or energy aspects only, but extend to the possibility of Baghdad itself being exposed to sanctions if it attempts to circumvent the new restrictions.
Ghadhban says in this regard: "If Iraq or some political figures loyal to Iran attempt to break or circumvent these sanctions, this puts the country in a very dangerous position, and the same sanctions could be imposed on it."
The danger of this scenario lies in the fact that Iraqi funds generated from oil sales pass through the US financial system, giving Washington the effective ability to disrupt the flow of dollars to Baghdad.
Energy and Commodity Crises
Historically, importing Iranian gas has formed the backbone of sustaining Iraqi power plants, as Iraq relies on between 40 and 50 million cubic meters of imported gas per day to operate its plants. Any disruption to these supplies threatens widespread power outages, especially during the summer peak seasons.
The Iraqi market is also directly linked to the Iranian market via active border crossings in Diyala, Basra, Wasit, and Maysan. Economic
estimates indicate that the volume of trade exchange between the two countries ranges between $9 and $11 billion annually.
Calls for solutions
: For his part, economic expert Mustafa Akram Hantoush called for dealing with the crisis realistically and seeking legal platforms for trade with Iran despite the return of sanctions.
Hantoush told Al-Mada, "The sanctions have reactivated the trigger mechanism, but a specific method must be found for permitted trade with Iran, provided that it is through non-prohibited channels and through internationally approved trade exchange zones."
He explained that "the solution does not depend on imports alone. Rather, we must consider producing some goods domestically, or turning to alternative markets to avoid any future problems." He stressed that "the issue requires logical solutions that prevent the collapse of the Iraqi market under the pressure of crises."
Difficult choices facing Baghdad .
Experts point out that the options available to Iraq are not many, but the most prominent of them are expanding domestic gas projects, turning
to alternative markets such as the Gulf states and Turkey, as well as activating plans to support national production in the agricultural and industrial sectors.
However, these solutions require a long time and clear political will, while the impact of sanctions is quickly beginning to appear through market fears and fluctuations in the prices of basic commodities.
BRICS Development Bank Vice President: The process of abandoning the dollar is underway
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Paulo Batista Nogueira, Managing Director of the International Monetary Fund and Vice President of the New Development Bank, confirmed on Monday that the process of abandoning the dollar, or what he described as "dollarization," is already underway. He noted that the dollar is expensive and risky, and that the United States is undermining its credibility through its behavior.
"Expanding the bank is essential, and expanding the political structure of the BRICS group is another matter," Nogueira told Sputnik on the sidelines of the Valdai Discussion Club. "We have always sought to achieve the primary goal when the bank was established in 2014, which was to increase the number of member states to become a bank for the Global South. This goal has been achieved very slowly, but it is continuing."
The economic expert pointed out that countries are working to expand bilateral trade in national currencies and avoid using the dollar within the banking system.
He added, "The process of de-dollarization is already underway in several aspects. One of them, in particular, is this: Countries are bypassing the dollar and conducting their transactions directly in their national currencies. This is happening both within and outside the BRICS group. Why? Because the dollar is expensive, risky, and because the United States is undermining its credibility through its behavior, so countries are looking for alternatives."
He explained: "Their dollar reserves are being diverted to other applications. Trade is conducted and increased in national currencies, and eventually, in my opinion, we will need to move toward a new reserve currency. But that is a matter for the future. Now, we see the US administration trying to punish countries that try to avoid the dollar and join the dollarization trend through various trade laws, sanctions, and so on."
Asked about the likelihood of success of the US methods, Nogueira said, "I don't think these violent methods used by the Trump administration will work in the US's favor. As you can see, countries that are beyond the dollar are not against it."
"Simply put, they can't deal with it under the system the United States has in place. I would even say that the main enemy of the dollar is the United States itself, because it has turned it into a political tool. It has turned it into a weapon in the financial system. So, this won't work. When the dollar was truly a reliable international currency, it was through persuasion. Now, they are trying to maintain the dollar's status as a reserve currency through coercion."
Regarding the timing of the new BRICS currency's implementation, the economist said: "Not in the short term, and perhaps not even in the medium term, but it must be clear that when we talk about a BRICS currency, we are not talking about a common unified currency like the euro. No, that's not the case. What can be done, and what a number of people have proposed, is a common reference currency for international transactions that replaces the dollar, as an alternative to it."
He concluded, "There is something that is sometimes difficult to explain, but is very important, which is that these transactions in national currencies do not reach a specific limit. They are not effective in the medium term. Why? Because they do not allow countries to record persistent trade imbalances with each other. Therefore, we need a new reserve currency, one that will be an alternative to the dollar."
Trump: Iran's accession to the Abraham Accords will bring economic benefits
US President Donald Trump said on Monday that "Iran may join the Abraham Accords in the future, which would be a major step for the country and would bring significant economic benefits," he said.
"I've long been willing to bet that Iran will become a party to the Abraham Accords at some point," the US president said at a White House press conference with Israeli Prime Minister Benjamin Netanyahu.
He continued, "I think they will be open to it. It will be a big step for them economically."
He continued, "I think they will be open to it. It will be a big step for them economically."
He added, "I negotiated the Abraham Accords, and my plan is to expand them, and Iran may join them. Tehran joining the Abraham Accords would be a wonderful thing," adding, "No American president has been better for Israel than me."
