Iraqi Dinar Breakthrough? (Uncut) 03-08-2025

“Iraqi Dinar Breakthrough? Oil, Gold, & Global Pressure – What’s Next?”

Creating a federal revenue controlled authority to oversee financial transactions. Hello everyone, welcome back to newsroom. I’m Chell Smith.

This is your Middle East US entertainment news here on YouTube. I air on Fridays bringing you the latest on reforms and economics of Iraq based on reports put out by the Middle East news media outlets. I do this weekly review and it’s based off my interests and thank you everyone for joining me.

Last week we talked about the Kurdistan oil exports, the UN exit signals, new era, path to peace, stability and prosperity, economic growth, stronger security ties, financial strengths, banking reforms, digital ration systems, industrial expansion, energy independence, the PMF laws, progress. It’s good to be back. Let’s take a look at this week’s headlines.

Welcome back everybody. Iraq’s oil dreadlocks, disagreements over resource management have delayed the passage of Iraq’s oil and gas law making approval unlikely in the current electoral cycle. Despite efforts since 2007, political differences especially between Baghdad and the Kurdistan region have stalled progress.

The law aims to regulate Iraq’s oil wealth, ensuring fair revenue distribution, economic stability and reduce political tensions. While technical aspects saw agreements, disputes over control, regional representation and legal commitments remain unresolved. If passed, the law would provide clear guidelines for managing oil resources, boosting investors’ confidence and strengthening Iraq’s economy.

However, without political consensus, the approval remains uncertain. And earlier in the week, U.S. pressured Iraq to resume Kurdistan oil exports-aimed payment disputes. According to the reports, oil exports from the Kurdistan region remained halted despite pressure from Washington on Baghdad to restart them and reduce Iranian oil exports.

Oil Press reported last Friday through Iraq’s federal government claiming that exports would resume soon. Foreign oil companies refused to proceed without guarantees of payment for past and future shipments. Exports have been suspended since March of 2023 due to the disputes over control.

APICUR, representing major oil firms, say that no formal agreement has been made. Meanwhile, Iraq’s oil ministry announces exports would restart soon, but companies remain firm that they want financial assurance first. The U.S. Treasury Secretary Scott Bersan has pledged to close the international financial system to Iran, stating that the economic and national security will be compromised.

The U.S. will target regional parties facilitating in revenue transfers to Iran, despite Iran’s oil sector and Holtzstrom’s manufacturing. Speaking about currency, Iraq’s digital currency is upon us again. Iraq is moving towards issuing a digital currency as a step towards reducing cash use and enhancing financial transparency, said Mouser Mohamed Choulei, the financial advisor to Prime Minister.

He called it a major leap that will cut printing costs, improve money tracking, and support anti-money laundering efforts. This transition requires strong internet and cybersecurity, along with public acceptance. Digital cash will function like transitional money but with greater efficiency and acceptability, supporting the financial inclusion and economic growth.

The central bank has announced that Iraq’s gold reserves grew by 45.1% in the last quarter of 2024 compared to the same period in 2023. Reserves increased from 12.29 trillion to 17.83 trillion dinars, driven by higher gold quality and rising global prices. This growth strengthens Iraq’s stability, protects against risk, and helps regulate the exchange markets.

And the Ministry of Oil in Iraq has achieved self-sufficiency in liquid gas and exported surplus gas to foreign markets, under Secretary Ezzat Sabir Ismail, highlights the importance of supporting projects for iron and plastic cylinders manufacturing plants and developing local markets and consumption process. The ministry’s success is reaching self-sufficiency in exporting surplus gas to foreign markets. It’s attributed to investment projects in industrial services and residential sectors.

And the Iraqi dinar has reached its strongest level in nine months, raising against the U.S. dollar. The exchange rate has improved from 147,750 to 145,950 dinars per dollar. This gain is due to the central bank’s policy, a steady dollar supply, a lower demand for U.S. currency, despite rumors of bank sanctions.

The exchange rate remains stable, boosting confidence in the Iraqi economy. Could Iraq be approaching a financial shift? Iraq moves towards formal financial channels is key to restoring an international exchange rate. And according to Mouser Mohammed Shaleh, Financial Advisor to Prime Minister, he has emphasized that tighter geopolitical controls on informal trades are pushing businesses towards official currency outlets, strengthening foreign trade through the global financial system.

This shift reduces reliance on parallel markets, curbs money smuggling, and increases Iraq’s foreign reserves. By facilitating international transactions through compliant Iraqi banks at an official rate of 1,320 dinars per dollar, Iraq is enhancing financial transparency and stability. The end of the central bank’s compliance platform phases further boosts flexibility in financial transfers, paving the way through reintegration into global markets.

And Iraq is working on the Medica Project. Iraq is planning to build one of the Middle East’s biggest industrial cities in FAO as part of the Development Road Project. Officials say that the designs are nearly finished and as the city will include petrol, chemical plants, power stations, and housing.

This project will turn into a key trade hub, linking the east and the west to creating millions of jobs and cutting shipping time from China to Europe to under 22 days. Despite some early obstacles, the plan is moving forward and will help Iraq rely less on oil while boosting global trade connections. Again, they’re talking about the digital banking in Iraq.

Iraq is working on improving its banking system with two major proposals. Lawmakers want to digitize banking to make transactions faster, reduce cash use, and improve transparency. The Financial Committee is closely working with the central bank to speed up this change.

There’s two key proposals. This is what they are. Updating private banking laws to help local banks grow and creating a federal revenue-controlled authority to oversee financial transactions.

Speaking about Iraq’s digital currency shift, to tackle Iraq’s liquidity crisis, Iraq’s central bank is considering issuing this digital currency, aiming to replace paper cash and transform the national financial landscape. This shift, promoted by increasing challenges as traditional cash management and global digitization trend, may reshape Iraq’s economy. The governor of the central bank, Ali Alalakh, highlighted plans for digital banking currency to reduce reliance on cash, a move already being made by other central banks globally.

This new currency would enhance financial transparency, reduce cash leakage, and improve financial control, especially regarding money laundering and terrorist financing. However, concerns remain practically around cybersecurity, infrastructure, and public trust in Iraq’s banking system. Despite these challenges, experts agree that digital currency could monetize Iraq’s financial system if supported by the right technological and regulatory frameworks.

Iraq stands at a pivotal moment in its economic transformation. With the Dinar strengthening, gold reserves growing, and digital banks expanding, the country is taking steps towards financial stability and protection. However, challenges like the oil dreadlock, the Kurdistan export disputes, and geopolitical pressures continue to shape its path forward.

As Iraq navigates global markets, whether through liquid gas exports, digital currency initiatives, or financial reforms, its ability to balance economic independence with international cooperation will determine its future. With choices made today, they will set for the foundation for a stronger, more stable Iraq in the years ahead. And you’ve been watching Newsroom Weekly Review.

I’m Chell Smith with your Middle East-U.S. entertainment news on reforms and economics of Iraq, bringing you the latest Dinar news. We’ve got to happen to keep up with all the different outlets on here on YouTube every Friday, so don’t forget to subscribe and turn those notification bells on. If you like my content, give me a thumbs up.

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