Five years. Three exchange rate resets. And the crisis continues.
link to My FX Buddies Blog Since the 2020 devaluation under Mustafa al-Kadhimi, Iraq has been struggling to stabilize its exchange rate. Al-Sudani’s government reduced the rate again in 2023, introduced an electronic platform for transfers, and eventually abolished it — yet the gap between the official and parallel market rates remains wide.
In this episode, we cover:
How the 2020 devaluation saved the budget but triggered inflation
Why the 2023 rate reduction and electronic platform failed to fully stabilize markets
Why the dollar remains “king” despite Iraq’s push to diversify currencies
How speculation, smuggling, and weak trade policy undermine monetary policy
The political dimension — US oversight vs. Iran’s shadow economy
Why experts say structural reforms (not just monetary tweaks) are the only way forward
Support My FX Buddies:https://cash.app/$tishwash.... https://paypal.me/tishwash....Get a FREE transcript at:https://rss.com/podcasts/myfxbuddies...📊 For dinar watchers: This history shows why a quick fix or overnight RV is unlikely — Iraq needs real trade and financial reform before lasting stability (and value increase) is possible.
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