IRAQI DINAR REVALUATION - currency update congratulations 🙌

#iraqidinarrevaluation #iraqidinar @iraqidinarnewsupdate
The passage of Iraq’s oil and gas law is closely tied to the potential revaluation (RV) of the Iraqi dinar (IQD) because oil revenues form the backbone of Iraq’s economy and financial stability. Here’s how the two are connected in detail:

1. Oil Revenues and Iraq’s Economy

Iraq is highly dependent on oil exports, with oil accounting for over 90% of government revenues.

The lack of a clear and fair oil and gas law creates uncertainty about how revenues are distributed between the central government in Baghdad and the Kurdistan Regional Government (KRG).

Political disputes over revenue sharing deter foreign investment, slowing economic growth and reducing confidence in Iraq’s financial system.
2. Impact on Foreign Investment and Currency Stability

Investors and international financial institutions look for stability before engaging in large-scale projects.

Without a clear oil law, foreign companies hesitate to invest in Iraq’s energy sector, limiting economic growth and reducing potential foreign currency reserves.

A stronger oil industry would increase Iraq’s foreign currency reserves, which is a key factor in the revaluation of the dinar.
3. Budget and Exchange Rate Policies

The Iraqi dinar's value depends on the country's foreign currency reserves, which are directly influenced by oil sales.

Political instability and legal uncertainty over oil revenues make it difficult to set a stable exchange rate.

If Baghdad and Erbil agree on the oil and gas law, Iraq could see an increase in oil exports and revenues, strengthening the dinar.
4. IMF and World Bank Requirements

International financial institutions like the IMF and World Bank often push for legal and economic reforms before supporting monetary policy changes.

The lack of a unified oil and gas law signals instability, making it difficult for Iraq to gain international support for any potential dinar revaluation.

A clear and enforceable oil law would reassure financial institutions and improve Iraq’s credit rating.
5. Investor Confidence and Speculation on IQD Revaluation

A well-regulated oil sector could lead to increased government revenues, reduced deficits, and improved monetary policy.

This would increase confidence in the Iraqi economy, attracting foreign investors who may speculate on a stronger dinar in the future.

However, continued political disagreements delay this process, making an immediate revaluation less likely.
Conclusion

The failure to pass the oil and gas law prolongs economic uncertainty, reduces investor confidence, and prevents Iraq from maximizing its oil revenues—one of the key drivers of the dinar’s value. If a consensus is reached and the law is enacted, it could strengthen the financial system, increase reserves, and pave the way for a potential dinar revaluation in the long term. However, as long as political disputes persist, the chances of an IQD revaluation remain uncertain.

Видео IRAQI DINAR REVALUATION - currency update congratulations 🙌 канала Iraqi Dinar