SANDY INGRAM: Iraqi IQD Analysis (Exchange Rates: May-June 2025) Buy, Hold and Sell

 SANDY INGRAM: Iraqi IQD Analysis (Exchange Rates: May-June 2025) Buy, Hold and Sell 

Summary

In the currency update for May and June 2025, several exotic currencies show promising trends against the US dollar, driven by a mix of domestic economic improvements, global financial developments, and geopolitical shifts. 

The Indian rupee stands out with a strong buy recommendation as Bank of America revises its forecast to 84 per US dollar by December 2025, reflecting stable economic fundamentals, supportive monetary policies, and improved current account balances due to lower oil prices. 

Similarly, Asian currencies like the South Korean won and Taiwanese dollar have appreciated thanks to anticipated US trade deals that might include currency exchange clauses, prompting these countries to limit dollar interventions; these are marked as “wait and see” decisions.

The South African rand exhibits resilience despite global economic uncertainties, underpinned by governmental efforts to stabilize the economy and foreign investment prospects, as well as its BRICS affiliation—a coalition quietly making strategic moves beyond mainstream media attention. Investors are advised to monitor gold prices, cryptocurrencies, and BRICS news weekly to capitalize on potential opportunities.

The Vietnamese dong continues to experience tight currency management by the State Bank of Vietnam, with gradual depreciation expected to maintain export competitiveness amidst US tariffs and dollar strength.

 This presents a strategic contrast with Iraq’s currency approach: the Iraqi dinar remains pegged at about 1,310 IQD per US dollar and is a highly speculative asset due to limited convertibility and fixed exchange rates.

 While Iraq’s oil wealth offers long-term potential, the dinar is unlikely to appreciate significantly without a move towards a floating exchange rate or major reforms. Investors are advised to hold existing dinar assets while diversifying into other low-cost currencies.

The channel encourages ongoing vigilance and engagement, especially considering the possibility of Iraq allowing the dinar to float at some uncertain future point, either early next year or later. A membership program offering insider access to Middle East exchange explorations is also promoted.

Highlights

• 💹 Indian rupee forecast revised to 84 per USD by December 2025, signaling strong buy potential.
• 🌏 Asian currencies like the South Korean won and Taiwanese dollar appreciating due to expected US trade deal currency clauses.
• 🇿🇦 South African rand shows resilience supported by BRICS membership and economic reforms.
• 🪙 Gold prices are advised to be monitored regularly as a stable investment opportunity.
• 💻 Cryptocurrency is worth monitoring; stay alert for developments surrounding the Iraqi dinar.
• 🇻🇳 Vietnamese dong managed tightly but expected to depreciate slightly to maintain export competitiveness.
• 🇮🇶 Iraqi dinar remains fixed and speculative; recommendation to hold and diversify portfolio.

Key Insights

• 💹 Indian Rupee’s Upward Trajectory Reflects Robust Economic Fundamentals: The rupee’s appreciation outlook hinges on India’s stable growth, progressive monetary policies, and the positive impact of lower oil prices on its current account deficit. This combination makes the rupee attractive for investors looking for emerging market exposure with some stability. Bank of America’s revised forecast signals growing investor confidence and may reflect stronger foreign equity inflows, suggesting India remains a key driver in the Asia-Pacific financial landscape.

• 🌏 Anticipated US Trade Deals Are Influencing Currency Policies in Asia: The expected inclusion of currency exchange rate clauses in future US trade agreements is causing Asian nations to limit direct interventions in their currency markets. This strategic move not only fosters currency appreciation but also aligns local policy with global trade frameworks, potentially reducing volatility and promoting healthier trade balances. This presents investors with a nuanced “wait and see” stance, hinting at potential upside but caution given ongoing trade dynamics.

• 🇿🇦 South African Rand’s Stability Is Bolstered by BRICS and Economic Stabilization Efforts: South Africa’s role as a founding BRICS member and its internal policies aiming at economic stabilization provide a foundation for the rand’s resilience. Although external uncertainties persist, this geopolitical bloc’s growing influence and covert strategic moves may hint at future economic integration and investment opportunities that are presently underappreciated by mainstream audiences. Investors monitoring BRICS developments could uncover hidden gems.

• 🪙 Monitoring Gold Remains Crucial Amidst Economic Uncertainties: The recommendation to follow gold closely, having started investing at $1,900 an ounce and seeing prices rise to over $3,300, highlights gold’s role as a safe haven and hedge against turmoil. In uncertain markets, gold’s intrinsic value and historical preservation of wealth make it an essential component of a diversified portfolio. This underscores the importance of physical or digital gold investments as part of long-term financial planning.

• 💻 Cryptocurrency and Iraqi Dinar Present Contrasting Risk Profiles: While cryptocurrency continues to be an area of interest, it carries volatility and speculative risks. In contrast, the Iraqi dinar remains a unique case: tightly controlled, with a fixed exchange rate and speculative status largely fueled by misinformation and scams. The dinar’s potential is tied to possible future reforms like moving to a floating exchange rate, but until such changes materialize, it remains a “hold” with cautious diversification suggested. This highlights the need for due diligence and informed decision-making in lesser-known currency markets.

• 🇻🇳 Vietnam’s Currency Management Reflects Strategic Export Competitiveness: The Vietnamese government’s deliberate strategy to manage the dong tightly, allowing for a modest depreciation, is aimed at preserving export advantages amid US tariffs and dollar strength. This mode of currency management underscores how emerging markets can harness monetary policy to bolster trade while mitigating inflationary pressures. Investors should recognize such policies as indicators of a country’s economic priorities and stability.

• 🇮🇶 Iraq’s Dinar Remains Speculative Pending Financial Reform Amidst Oil Resource Potential: Despite Iraq’s vast oil reserves offering considerable long-term economic promise, the dinar’s current fixed peg and limited market convertibility leave it speculative. The potential for meaningful appreciation is contingent upon Iraq adopting a free-floating currency regime or implementing comprehensive financial reforms — events that are uncertain in timing. This creates both risk and opportunity for investors who must balance asset holding with diversification to mitigate exposure to illiquid or controlled currency environments.

Overall, the May–June 2025 currency outlook emphasizes a diversified approach: favoring strong emerging market currencies supported by fundamental growth, while maintaining vigilance on geopolitical and monetary policy shifts. Gold and select cryptocurrencies complement this strategy, with a watchful eye on BRICS developments shaping future investment landscapes. Meanwhile, speculative assets such as the Iraqi dinar require patience, due diligence, and a cautious approach until political and financial reforms drive clarity and unlocking of value.