📉💥 “Iraq Slashes Inflation – Is the Dinar Stabilizing for Revaluation?” 🏦🇮🇶

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 📉💥 “Iraq Slashes Inflation – Is the Dinar Stabilizing for Revaluation?” 🏦🇮🇶

CBI Reports Major Decline in Issued Currency & Inflation | August 2025 Update 👇


🧠 Key Highlights:

🪙 Currency in Circulation Drops by 3.8%

"Currency issued by the Central Bank dropped to 98.4 trillion IQD in H2 2025 — down from 102.3 trillion IQD in Q2 2024."
🧮 Interpretation: A deliberate tightening of the money supply.

📉 Inflation Rate Falls by 76%

Inflation has dropped from 3.3% to 0.8%, contributing to price stability across Iraq.
💡 This is a clear signal of monetary discipline.

💪 Stronger Purchasing Power Emerging

“The decline in inflation improves the purchasing power of individuals and institutions.”
🔑 Meaning: Iraqis can now buy more with less — a major step toward financial strength.


🧾 What It All Means:

🔁 Reduced Currency = Controlled Liquidity

Fewer dinars in circulation can pave the way for a revaluation, as it signals controlled inflation and economic maturity.

📊  Inflation Under 1% = Reval-Friendly Environment

Central banks typically aim for low, stable inflation before adjusting exchange rates. Iraq is now within that range.

🔍 CBI Is Actively Managing Its Monetary Tools

This isn’t accidental. These moves are strategic and align with pre-revaluation conditions seen in other historical cases.


🚀 Bottom Line:

The Central Bank of Iraq is showing strong macroeconomic performance, which supports RV readiness. With tight currency control and inflation collapse, the conditions for dinar movement are ripening fast.


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