🚨 Iraq RV & Iranian Influence: US and IMF Impact on the Dinar 💰🇮🇶

The Iraqi Dinar RV continues to attract attention, but multiple challenges remain. Iranian influence, US political pressure, and IMF concerns are creating obstacles for the reinstatement of the IQD to international status.

🏛️ US Demands vs. IMF Will in Baghdad

According to the article “A Government Stripped of Factions: The American Condition Clashes with the Will of the IMF in Baghdad”:

• The IMF and the US have conflicting priorities regarding Iraq’s government formation.

• US conditions demand a government free of factions, while the electoral reality shows faction-affiliated blocs winning dozens of seats.

• Iraqi political forces face a difficult choice:

  1. Accept Washington’s demands → risk angering voters

  2. Respect election results → risk diplomatic/economic isolation

     Read also: REINALDO JC: Iraq Dinar Projections: $3.22 – $4.25 – Key Highlights

     
     

🔹 CBI & Iranian Issues: Impact on the RV

Insights from a CBI contact reveal:

• The CBI cannot remove zeros or complete the RV until US-Iran related issues are clarified.

• The new prime minister is not yet selected, complicating negotiations.

• Instructions for the redenomination plan are ready but pending political alignment.

The plan to remove zeros is still targeted for December, but execution depends on international agreements and political stability.

🕰️ Timing and Mechanism

• Iraq planned a new currency mechanism on December 1, 2025.

• Includes:
  ✔️ Central Bank Digital Currency (CBDC)
  ✔️ Redenomination plan (replacing large three-zero notes with smaller denominations)

• Goal:
  ✅ Modernize Iraq’s financial system
  ✅ Increase public confidence
  ✅ Reduce reliance on fiat currency

• Rollout: Phased, pending technology infrastructure and public adoption

🏗️ Iraq Development & Multi-Year Budget

Other key news:

• “Pulse of Mosul” Project launched by PM Mohammed Shia al-Sudani to revive Mosul’s neighborhoods.

• Multi-year budget discussions for 2026-2028 underway, aiming to stabilize long-term revenues.

• Road and railway projects are progressing, but delays persist due to previous budget shortfalls and oil price fluctuations .

❓ Featured Q&A 

Q1: Is the US supporting the Iraqi Dinar moving to international status?
A1: US conditions, including faction-free government formation and Iranian influence resolution, are preconditions for international reinstatement.

Q2: What is the IMF’s position on the RV?
A2: The IMF is clashing with US objectives and pressuring Iraq, creating delays.

Q3: Will the RV happen in December 2025 or early January 2026?
A3: Likely conditional, depending on political resolution, prime minister selection, and US-Iran negotiations.

Q4: What is included in the new currency mechanism?
A4: Central Bank Digital Currency (CBDC) + redenomination plan, phased rollout.

📈 Bottom Line

• Iranian influence, IMF-US disagreements, and domestic political realities create uncertainty  for the RV.

• CBI is prepared operationally, but external conditions will dictate timing.

• Projects like Pulse of Mosul and multi-year budgets signal long-term stabilization efforts.

Patience is key. December updates may shift as political and international issues evolve.

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MNT GOAT

Knowing all this, after reading these articles on this subject matter of Iranian influence in Iraq, Do you believe that the U.S. is going to support the Iraqi dinar moving to international status any time soon?

What does the IMF say about it? Are they ready to support the RV?

In the article titled “A GOVERNMENT STRIPPED OF FACTIONS: THE AMERICAN CONDITION CLASHES WITH THE WILL OF THE IMF IN BAGHDAD” we learn what that the IMF is clashing with the Trump’s objectives. According to the information  

this demand by the Americans clashes with an electoral reality that cannot be ignored: The political blocs affiliated with the factions have won dozens of seats in the new parliament, reflecting the will of a broad electorate in the central and southern regions.

This duality creates a deep tension between the will of the IMF on one hand, and the will of the major international power on the other, and puts Iraqi political forces before a difficult choice: either to accept Washington’s conditions and risk the anger of their popular base, or to proceed with forming a government that respects the election results and exposes Iraq to possible diplomatic and economic isolation.

I ask, what do you believe is going to happen? Do you think this mess with Iran is going to be cleared up in time to conduct the swap out of the notes and allow for the reinstatement all by early January 2026?

Insert comment block here

To answer this question, I want to add a few thoughts:

1. I can only report on what I am told by my CBI contact, then read the articles for more;
2. When does Iraq do anything exactly on time?
3. Iraq and the US obviously have not yet settled the Iranian issue.
4. The new prime minister is not yet selected.

Yes, its December 2nd already and  was told that there is enormous pressure on the CBI by the IMF to move ahead, but they can’t, as they are also working very closely with the US Treasury on a daily basis. So, for today’s news lets look at the articles and see if we can explain further on these issues facing Iraq.

I know this is not the news we had hoped for today but it is what it is. Remember that things could change drastically as we move through December.

My Saturday call to Iraq:

My contact reiterated once again the success of the Mnt Goat Newsletter blog. She said she is thankful that someone is there to tell the TRUTH about what is really happening in Iraq. She too reads and listens to all the “bullshit” on the internet. She emphasized the word “bullshit”. Where do people get these lies from, she asked?

I then said thanks for her comments. She then told me that the CBI has been told by the Finance Committee to hold off on removing the zeros until the issues with the U.S. around the Iranian saga are agreed to and at least how this will be handled. Right now it it is even more difficult to negotiate on the issues dealing with Iran because Iraq does not yet even know who to negotiate with, since the prime minister is not yet elected. My guess it there will some sort of commitment, with an agreement, then with a pledge and “or else” conditions, built into it. Iraq will have to show some sort of immediate actions to cement the terms of the agreement.

I asked more about the project to remove the zeros. She said it is still targeted for December, be patient and instructions are ready to be posted in the news on how to conduct the swap out. Do you remember the recent article we read about December 1^st being the date for a new currency mechanism in the article titled “IRAQ IS SET TO IMPLEMENT A NEW CURRENCY MECHANISM ON 

DECEMBER 1, 2025”. You can go to my Nov 20^th Newsletter for more information on this article. Here is the article and so you can read the first statement yourself. What does it say?

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Article Follows

Iraq is set to implement a new currency mechanism on December 1, 2025

Iraq is set to implement a new currency mechanism on December 1, 2025, which includes the introduction of a central bank digital currency (CBDC) and a redenomination plan. 

In this first paragraph it tells us what it includes. It says  “includes the introduction of a central bank digital currency (CBDC) and a redenomination plan.” Can it get any clearer that the CBI intends to being the redenomination plan or remove the zeros. This means to replace the larger three zero notes with the lower denominations. (When this occurs we know the IQD rate will be about 75 cents in-country until they collected what notes they need to collect. ) 

This move aims to modernize Iraq’s financial system, enhance financial transparency,  and reduce reliance on traditional fiat currencies. The CBDC will eventually replace physical banknotes, while the redenomination plan will simplify transactions and improve public confidence in the dinar’s value. 

The Central Bank of Iraq has not specified the exact exchange procedures or deadlines, but a phased rollout is expected. This transition is part of broader global banking  reforms and will require a strong technology foundation and public acceptance to ensure it’s success.

Article Ends

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What else is in the news?

Besides the Iranian issues, the news today is all very good for Iraq. In the recent past we learned about many of these initiatives to bring Iraq into the middle east leadership role. But they are not there yet. To be honest with you I have been thinking that the Development Road Project was much further that we see in an article in today’s news that they are just reaching out for contractors to build the roads and railways, so this may take a while to pan out as a revenue stream. 

Then in article titled “IN COOPERATION WITH THE ASSOCIATION OF PRIVATE BANKS, THE FIRST PHASE OF THE “PULSE OF MOSUL” PROJECT HAS BEEN LAUNCHED” we learn that Prime Minister Mohammed Shia al-Sudani launched the first phase of the “Pulse of Mosul” project on Sunday.Sudani launched the (Pulse of Mosul) project, which aims to rebuild the alleys and neighborhoods of the old city of Mosul, inspired by the (Pulse of Baghdad) project, which included the rehabilitation and maintenance of the old areas of Baghdad.” Why is this important?

This project of reviving Mosul show us that Iraq is concerned about rebuilding Iraq and after over 20 years since 2003 are now taking this effort seriously.. Yes, like the Development Road Project. As Al-Sudani pointed out during the meeting this project   will also mean increased revenues from reviving the heritage of the ancient city, to be an important tourist gateway and enhance its historical and heritage status. As an investor, you too may have the opportunity some day soon to travel to Iraq and experience history and all the cities you only read about in my blog and the articles.

In multiple articles on the subject matter of a mulit-year budget we can begin our education on why a multi-year budget and the benefits to Iraq. We can read about this effort in the articles titled:

“IRAQ IS REVIVING THE THREE-YEAR BUDGET EXPERIMENT; THE MINISTRY OF PLANNING HAS BEGUN DISCUSSING IT IN PREPARATION FOR PRESENTING IT TO DECISION-MAKERS”.

“THE GOVERNOR OF THE CENTRAL BANK OF IRAQ PARTICIPATES IN THE ARAB BANKING CONFERENCE 2025”

“THE 2026 BUDGET IS ON THE PLANNING TABLE… A DISCUSSION OF THE GENERAL FRAMEWORK AND PLANS FOR SUBSEQUENT YEARS”

All three of these articles can be found in the Mnt Goat Newsletter Articles Section. 

The 2026 budget and plans for subsequent years were the focus of a meeting at the Ministry of Planning, where the general framework and proposed projects to be included were discussed. The ministry stated in a statement, which was reviewed by (Shafaqna Iraq), that “a meeting was held today, Wednesday, to discuss the preparation of the budget for 2026 and the next three years (2026-2027-2028). Remember that this is the second time that they are attempting a three-year budget. The last term was 2023-2025 but a sudden drop in oil prices beyond what was budgeted for basically killed the ability to conduct the 2025 projects. Instead of borrowing the GOI simply postponed the projects hoping to fund them in 2026.

There is not much more important news to bring at t his time. The 2025 election is not yet decided and probably won’t be until all the appeals from the election results are decided upon in the Supreme court. Then having ten days afterwards to announce the results. The court just told us they have reviewed all the appeals that were pending however there is still time to allow to submit yet more appeals since the statute of limitations has not yet run out. So we wait to learn of the election results.

Of course, this other “sour grape” issue namely the Iran influence in Iraq must be resolved somehow. Oh… there is always an issue that seems to stop the RV. But will it this time? We still have to see what happens. At least none of my blog readers are ignorant on this subject matter as I have presented countless articles about this danger of holding up the RV this year or early next. All I can say is “I told you so”. Are you listening.

Having read my RV Status for this period when do you think the RV will happen? 

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