On Sunday night a headline said Iraq's 2027 budget values $100 at 150,000 IQD. On Monday evening the same outlet carried a currency market spokesman saying the decision will not be implemented.
In between, Iraq's ruling coalition and its parliament both called the Finance Minister in. Nobody with the power to set the IQD's rate has put a name to 150,000.
19 hours
The devaluation headline went up late on Sunday, built on one lawmaker repeating a figure from a draft. 19 hours later the same outlet quoted the spokesperson for the Slemani Currency Exchange Market, the trading floor in Sulaymaniyah. “In my personal opinion, this decision will not be implemented,” he said. A policy of this scale is “never made haphazardly”, he added, and would need deep study by the Central Bank of Iraq's own experts. The first headline went round the dinar community by Monday morning. The second travelled a lot less.
Everything else that moved
- The coalition — the Coordination Framework, the alliance that holds the largest share of parliament, hosted Finance Minister Faleh al-Sari on Monday. Its statement stressed policies that support economic stability and raise the standard of living for Iraqi citizens. It did not mention 150,000.
- Parliament — the Finance Committee has decided to host al-Sari this week. On the list of questions: revenue, spending, hiring and “the value of the dollar”. A second lawmaker said there is “no clear government decision pushing for an increase in the exchange rate.”
- The World Bank — a World Bank delegation told the same committee that the Iraqi government has a clear vision for its financial reforms.
- The street — the dollar closed Monday at 160,300 IQD per $100 in Baghdad, up from 158,050 on Sunday, against the official 131,000. The headline moved the street. It did not move the bank.
- The chairs — 14 of 23 cabinet seats are filled and 9 are open. One source says the vote has been pushed to next week, a lawmaker says October 8. Either way it now lands within days of the 2027 budget, due in parliament by October 15.
- Tehran — Trump said the war with Iran is almost over. Iran's president called talks with Washington “meaningless.” American forces have turned back 130 ships under the blockade.
The question
Our stance is that Iraq is not devaluing the IQD. The Central Bank of Iraq sets the rate by law, and it spent Tuesday running the same auctions it runs every week.
Credit: Written by Reset Intelligence — David E. Atterton, author of Head of the Snake (@EXIT_FIAT). More at resetintelligence.com.
Research and commentary only. Not financial, legal, or tax advice. Consult qualified counsel in your jurisdiction before acting on any position.