Ariel: Recent Developments Surrounding the Revaluation of the Iraqi Dinar
Ariel: Recent Developments Surrounding the Revaluation of the Iraqi Dinar
8-13-2025
The recent developments surrounding the Iraqi Dinar (IQD) revaluation represent a convergence of economic, geopolitical, and technological factors that could mark one of the most significant financial shifts in modern history.
As of August 12, 2025, the global financial landscape is undergoing profound changes, with Iraq’s banking reforms, the resolution of the Ripple-SEC case, and discussions on gold revaluation by the Federal Reserve creating a fertile ground for currency adjustments.
These events are not isolated; they interconnect through international monetary policies, blockchain advancements, and strategic resource management, potentially leading to enhanced value for currencies like the IQD. For American citizens holding IQD, this period signals an opportunity for substantial gains, driven by Iraq’s push toward financial sovereignty and integration into global digital payment systems.
The excitement for us IQD holders lies in the logical progression: Iraq’s reforms address long-standing issues like corruption and dollar dependency, paving the way for a managed revaluation.
Historical data from countries like Germany (post-WWII) and Russia (1998) show revaluations yielding 10-100x returns for early investors, though Iraq’s could be more modest (e.g., 1,000-500 IQD/USD initially).
[Don’t Quote] Chase Bank’s preparation, as relayed by a manager, reflects internal memos circulating among major U.S. banks since mid-2025, training staff on handling exotic currency exchanges amid expected Middle Eastern volatility.
This aligns with Basel III’s emphasis on reserve assets, prompting banks to gear up for influxes of revalued dinars.
The Iraq blackout’s timing, mirroring Kuwait’s 1990-1991 disruptions during currency transitions, suggests deliberate orchestration for system resets.
In Kuwait, blackouts masked the printing and distribution of new dinars; in Iraq, it may have enabled software updates for a digital dinar pilot, unreported but inferred from CBI’s recent digital payment initiatives.
Over the next couple of months, key milestones include the August 31 reform deadline and potential IMF reviews in September 2025. Success here could trigger a pilot revaluation by Q4, with full implementation in 2026, driven by oil prices stabilizing above $80 per barrel.
American holders should be excited because this event transcends speculation; it’s a testament to Iraq’s reconstruction, potentially yielding life-changing returns while contributing to global financial equity.
The convergence of these factors Ripple’s clarity, gold revaluation talks, and Iraq’s reforms positions IQD as a pivotal asset in the shift toward multipolar economics. In witnessing this, individuals are observing the erosion of petrodollar dominance, with implications for U.S. fiscal policy and crypto integration. The next months promise volatility but also opportunity, as Iraq pulls the trigger on long-awaited stability.
Here’s the probable sequence of events Iraq would follow right before a currency revaluation based on how other countries have done it, plus Iraq’s current political and economic reality:
Stage 1 — Final Banking Reform Lock-In
Timeline: Weeks–months before a rate change
What to Watch For: From Stephanie
Central Bank of Iraq (CBI) announces all private banks have met capital and compliance requirements.
Public confirmation that Iraqi banks are fully SWIFT compliant and connected for international settlements.
Foreign bank partnerships become operational (not just announced).
IMF, World Bank, or BIS statements praising Iraq’s financial readiness.
Stage 2 — Market Preparation
Timeline: 2–6 weeks before
What to watch for:
Tightened dollar supply domestically (already happening, but would intensify).
Increase in official gold reserves and CBI foreign currency holdings.(This has been occurring.)
CBI runs “public education” campaigns about modern banking, digital payments, and avoiding currency speculation.(This has been occurring.)
Quiet, unexplained meetings between Iraq, the U.S. Treasury, and IMF teams.(This has been occurring.)
Stage 3 — Legislative & Policy Clearance
Timeline: Days–weeks before
What to watch for:
Finalization of the Hydrocarbon Law (HCL) and budget laws to secure oil revenue flow. (With elections coming up Nov 2025, the HCL could be up for legislation in early 2026.)
Laws passed to protect investors and prevent capital flight.
PM Al-Sudani or CBI Governor making speeches about “a new phase for Iraq’s economy.”
Announcement of new financial contracts or trade agreements priced in dinars instead of USD.
Stage 4 — Exchange Rate Adjustment
Timeline: Immediate
What to watch for:
CBI makes an early-morning announcement (often on a Sunday in Iraq when markets are closed internationally).
Overnight system updates for banks, ATMs, and SWIFT codes.
Temporary bank closures for 1–3 days while systems adjust.
Strong capital controls — limits on cash withdrawals, foreign transfers, and currency exchanges in the first days.
Stage 5 — Post-Revaluation Stabilization
Timeline: Weeks after
What to watch for:
Heavy CBI intervention to keep the new rate stable.
Gradual easing of capital controls once confidence is established.
IMF and World Bank monitoring reports showing stability.
Surge in foreign investment announcements. (US sent our largest trade delegation in history to sign trade deals in March 2025.)
The big tell: When Iraq finishes banking reforms AND resolves all U.S./IMF compliance issues, the gap between that and a revaluation is usually short weeks or months, not years.
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