#Rial Iranian currency

[dinaritexch]

Is it Legal to Buy Iranian Rials in the USA?

When it comes to trading currencies like the Iranian Rial or Iraqi Dinar people ask about the legality, logistics, and practicality of such transactions. Among those questions, the question "Is it legal to buy Iranian Rials in the USA?" is one of the most asked.

The Iranian Rial (IRR) saw dramatic fluctuations from 2000 onwards. The exchange rate ranged from 1,750 to 44,070 IRR per US dollar. Today, one US dollar equals about 42,091.797 IRR as of January 2025. The exchange rate has remained stable around 42,000 IRR since April 2018. US economic sanctions against Iran have been in place for decades. The rial is now a blocked currency that doesn't trade freely on global foreign exchange markets.

The US Department of State has also issued a Level 4 Advisory for Iran. They warn against travel because of terrorism risks, civil unrest, and possible arbitrary arrests of US citizens. This article will focus on the legality of buying the Iranian Rial in the USA, trading it against other currencies on Forex, and how it compares to similar markets like the Iraqi Dinar. And also the legal framework, restrictions, and compliance requirements for Iranian currency transactions in the United States. Readers will learn what current regulations allow them to do.

Legality of Buying Iranian Rial in the USA

The legality of buying Iranian Rial in the US is tied to broader US sanctions on Iran. Since the Iranian government and its financial institutions are under strict economic sanctions due to geopolitical tensions, the US Department of the Treasury has imposed restrictions on Iranian Rial transactions.

Under current laws, it is generally not legal for U.S. residents to engage in financial transactions involving the Iranian Rial unless specific permissions are obtained through the Office of Foreign Assets Control (OFAC). The restrictions are to prevent financial support to flow to the Iranian government or entities tied to its economy.

It is not illegal to have Iranian Rials but buying or trading them in the US through regulated channels is a legal gray area mainly because of restrictions on dealing with Iranian banks or financial institutions. So individuals who want to buy Iranian Rial must be cautious and consult with legal or financial experts to ensure compliance with US laws.

Trading Iranian Rial Against Other Currencies on Forex

Trading Iranian Rials against other currencies on Forex may seem exciting but the reality is more complicated. Unlike widely traded currencies like US Dollar (USD), Euro (EUR) or Japanese Yen (JPY) Iranian Rial is not freely traded on international Forex platforms. Here’s why:

Sanctions on Iran: Most Forex brokers globally avoid offering Iranian Rial because of the same sanctions that restrict its use in the US. So it’s hard to trade Rial against US Dollar or Euro.

Extreme Volatility: Iranian Rial is one of the most volatile currencies in the world due to economic and political instability in Iran. Its value fluctuates wildly and is risky for traders and investors.

Lack of Accessibility: Even outside the US, Forex platforms that list exotic currencies like Rial are few. Traders focus on more liquid and accessible currency pairs.

While trading Iranian Rial against other currencies may be attractive for high risk traders, the limited availability and legal implications make it impractical for most.

Current Legal Framework for Iranian Currency

The US exercises tight control over Iranian currency transactions through multiple regulatory frameworks. The Office of Foreign Assets Control (OFAC) specifically prohibits U.S. financial institutions from processing transactions involving the Iranian rial.

US Treasury regulations

The Treasury Department enforces detailed restrictions on Iranian rial transactions. Foreign financial institutions risk severe penalties if they knowingly conduct significant transactions related to purchasing or selling Iranian rials. Additionally, maintaining substantial rial-denominated accounts outside Iran is prohibited. These regulations stem from Executive Order 13846, which specifically targets Iran's currency operations.

State department guidelines

The State Department's rules focus on limiting economic activities between U.S. citizens and Iran. U.S. citizens cannot engage in most economic transactions with Iran. The Department provides detailed guidance through OFAC's Iran sanctions resource page and offers direct help through their Compliance Programs Division.

International sanctions impact

These international sanctions have hit Iran's economy and currency stability hard. The Iranian economy shrank by 15-20% compared to pre-2012 sanctions levels, which led to a $160 billion loss in oil revenue alone. The effects go beyond direct financial measures, with more than $100 billion of Iran's assets frozen in restricted accounts worldwide.

The European Union works closely with U.S. measures and has put in place restrictions that are "nearly as extensive as those of the United States". These joint efforts have created major economic problems:

The rial lost 56% of its value between January 2012 and January 2014

Prices rose by about 40% during this period

Job losses pushed unemployment to around 20%

This sanctions framework keeps changing through executive orders and congressional legislation. The president can waive almost all sanctions by citing "national interest." However, removing terrorism-related sanctions would need Iran's removal from the state sponsor list.

Restrictions on Buying Iranian Rial

Strict rules control all transactions with the Iranian rial. Complete restrictions affect both direct purchases and financial intermediaries. The U.S. Treasury Department has put broad controls on rial-related activities, which marks the first time sanctions have directly targeted trade in Iranian currency.

Direct purchase limitations

Foreign financial institutions can't easily handle Iranian rial transactions. These institutions might face penalties if they knowingly conduct major transactions related to buying or selling Iranian rials. They also risk penalties for maintaining substantial rial-denominated accounts outside Iran. The Treasury Department wants to make the currency unusable beyond Iran's borders.

Indirect transaction rules

Rules go beyond direct purchases to include various transaction types. U.S. depository institutions can process transfers with Iran only under specific conditions:

The transfer must arise from an authorized underlying transaction

The process cannot involve debiting or crediting an Iranian account

The transaction must comply with specific license requirements

Financial institution policies

Banks and financial institutions need strict compliance measures for dealing with Iranian currency. The Iranian Financial Sanctions Regulations (IFSR) sets clear guidelines for both U.S. and foreign financial institutions.

Banks face heavy penalties for violations, including:

Civil penalties up to $250,000 or twice the transaction value

Criminal penalties reaching $1 million and 20 years imprisonment for willful violations

The rules target major transactions, especially those with the purchase or sale of Iranian rials or derivatives based on the rial's exchange rate. Financial institutions must keep thorough due diligence procedures and detailed documentation of all consignees and intermediaries involved in transactions.

These restrictions have created complex compliance requirements. Foreign financial institutions must avoid new activities that could trigger secondary sanctions while winding down their existing Iran-related business operations.

Impact on Different Transaction Types

U.S. regulations apply different levels of scrutiny to financial transactions with Iran. Understanding these differences is vital to comply with federal laws.

Commercial transactions

The Iranian Transactions and Sanctions Regulations (ITSR) closely monitors commercial dealings. U.S. depository institutions can process transfers only under two main conditions:

The transfer must come from an authorized underlying transaction

The process must not involve debiting or crediting an Iranian account

These institutions face heavy penalties if they break the rules. Civil penalties can reach $250,000 or twice the transaction value.

Personal remittances

Personal, non-commercial remittances have slightly more flexible rules. U.S. depository institutions and registered brokers can handle these transactions if they meet specific criteria. In spite of that, these transfers must avoid:

Money service businesses or hawalas anywhere

Blocked persons under various sanctions programs

Iranian financial institutions blocked under specific regulations

People can carry personal remittances to Iran by hand, but this only works when they carry funds for themselves. The rules don't allow carrying funds for family members or others.

Investment considerations

Investment activities face the toughest restrictions. The rules ban many investment-related transactions, including:

Property purchases, business investments, and fund commitments in Iran need special OFAC licensing. Opening accounts in Iranian banks or depositing funds breaks the rules on new investments.

Foreign financial institutions risk losing their correspondent and payable-through accounts if they knowingly take part in big rial-related transactions. The same applies if they keep large rial-denominated accounts outside Iran. The Treasury Department looks at several factors to judge how significant a transaction is. These include its size, frequency, complexity, and management awareness.

Compliance Strategies and Best Practices

Financial institutions need reliable compliance procedures to handle transactions that might connect to Iranian currency. These procedures include complete record-keeping, careful transaction monitoring, and detailed regulatory reporting.

Record keeping requirements

Banks must keep detailed records for at least five years from their creation date. These records should contain:

Transaction documentation for any amount with Iranian rial

Foreign bank certifications and responses to questions

Supporting documentation for all reports filed

Original business records or equivalents

Banks can maintain easy-to-access records without creating duplicate documentation. They should produce required information during examinations.

Transaction monitoring

Extra due diligence applies to monitoring transactions that could link to Iranian activities. The Financial Crimes Enforcement Network (FinCEN) has seen Central Bank of Iran officials use regional financial institutions to hide illicit transactions.

Banks should follow these monitoring practices:

Ask correspondents for more details about transaction nature and involved parties

Check accounts and transactions for exchange houses that violate sanctions

Reach out to correspondents who enable suspicious third-country transactions

Regulatory reporting

Banks must file reports for different transaction types based on specific characteristics. The reporting requirements for electronic funds transfers include:

SWIFT transfers under $10,000 CAD with Iranian rial

Cash receipts of any amount with Iranian connections

Virtual currency exchanges involving Iranian rial

Banks should treat all Iran-linked transactions as high-risk and watch them for suspicious activity. The institution's financial crimes compliance team must know about any transactions involving Iran.

Commercial aviation services need extra watchfulness because designated Iranian airlines have tried to dodge sanctions before. Banks should look at additional signs and circumstances, like customer history and other red flags, to decide if a transaction seems suspicious.

Future Outlook and Regulatory Changes

The Iranian government's latest currency regulations show the most important changes in the financial world. Iranian authorities have tightened their grip on foreign currency exchanges. They now treat unauthorized transactions and online advertisements as criminal offenses.

Pending legislation

The Central Bank of Iran's new decree makes several activities illegal without proper permission:

Unauthorized currency transactions in virtual spaces

Online buying and selling of currency

Futures trading and brokerage services

Currency transfer promotions

These rules hit small currency exchange businesses hard. They now risk criminal charges and could lose their licenses. Tehran seems to focus on lifting the rial's value through domestic measures rather than seeking relief from sanctions.

Policy trends

Iran's government has approved rules for cryptocurrency trading, which marks a new direction in financial policy. The country can now process import payments using digital currencies. We saw this in action with the first official $10 million automobile import order paid in cryptocurrency.

Local banks, currency exchanges, and licensed miners have received permission from Iran's Central Bank to handle import bills through cryptocurrencies. The country has also set rules for bitcoin mining and lets miners use subsidized energy.

Market implications

The economic outlook for 2024 looks tough. Experts predict:

GDP growth will average 1.9% year-over-year

Inflation will hover around 30% after hitting 45% in 2023

Black market rates will move between 500,000 and 600,000 rial to the dollar

High money supply growth and sanctions continue to drive inflation higher. The government needs to remove fuel subsidies to manage energy use. This change will push inflation up and reduce how much people can spend.

Iran's currency has lost more than 90% of its value since sanctions returned in 2018. This drop points to bigger economic troubles, with Iran's official inflation rate reaching about 35%.

Iran's economic path raises red flags as investment drops and inflation eats away at living standards. The government tried to control the exchange market but faced setbacks. Almost half of the country's exchange offices closed last year.

The economy might grow if sanctions on Iranian oil ease up. Yet people will still struggle through 2024 with high inflation and weaker buying power. These factors suggest Iran's currency markets will stay volatile, affecting both local and international deals.

Comparing the Iraqi Dinar and Iranian Rial

The Iraqi Dinar has gained some popularity among speculative Forex traders, with several online exchange services offering Dinar trading options. These platforms often boast low fees, moderate commission structures, and detailed guides to trading. Unlike the Iranian Rial, which is heavily restricted, the Iraqi Dinar can legally be purchased and traded in the USA. Here are some key distinctions:

Legal Accessibility:

Iraqi Dinar: Legal to buy, sell, and trade through authorized brokers and exchange platforms.

Iranian Rial: Subject to U.S. sanctions; trading or buying is generally prohibited.

Market Stability:

Iraqi Dinar: Relatively more stable, with moderate fluctuations.

Iranian Rial: Known for extreme volatility due to political and economic instability.

Trading Platforms:

Iraqi Dinar: Available on several top online Forex services with transparent fee structures.

Iranian Rial: Rarely found on Forex platforms due to sanctions and limited global demand.

Tips for Trading Foreign Currencies

If you’re interested in foreign currency trading, consider the following:

Choose a licensed broker offering Iraqi Dinar exchange services with low fees and transparent commission rates.

Research top online Forex services for Iraqi Dinar or other accessible currencies that fit your investment goals.

Be cautious of online platforms promising guaranteed profits from speculative currencies.

Stay updated on international sanctions and their impact on the currency market.

Conclusion

U.S. regulations on Iranian Rial transactions need careful analysis of several key aspects. OFAC and Treasury Department guidelines enforce a strict legal framework that substantially restricts direct purchases and financial intermediary involvement. These limits apply to commercial deals, personal money transfers, and investments.

Banks and financial institutions must stick to strict compliance rules. They need to keep detailed records and watch transactions closely. Anyone breaking these rules faces tough penalties - fines up to $250,000 or double the transaction value, plus possible criminal charges.

The Iranian Rial faces tough times ahead in 2024, according to market forecasts. Financial experts expect inflation to hover around 30% while the currency's value drops further. Dinarit.com offers reliable updates on currency rates and regulations for readers who want to learn more.

Iranian currency transactions exist in a complex world shaped by local policy shifts, crypto adoption, and international sanctions. U.S. citizens can still make personal, non-commercial money transfers with some flexibility. Yet they should be extra careful and follow all current rules before getting involved with any Iranian Rial activities.

Source: Dinarit

[chawsl]

[n4tural1]

Fun Fact! Maximising the length, Jeff Bezos' wealth could be converted into a ladder made of coins that is 591,084,000,000,000m in length! This comes from converting Jeff Bezos' 210.6 billion USD into the most worthless currency, the Iranian rial. This equals 8,866,260,000,000,000.00. By converting Iranian Rial into Iranian Denarius, that amount is multiplied by 100. This equals 886,626,000,000,000,000 Iranian silver Denarius. A silver denarius is 2mm in width, this equals .002 meters. Multiplying 886,626,000,000,000,000 by .002 gives you a pole made of coins 21mm in diameter and 1,773,252,000,000,000m in length! However, this is a pole and not a ladder. In order to make this pole into a ladder, the pole needs to be halved, making two poles. However, this is just 2 identical poles instead of a ladder, and in order to have a functioning ladder, the total length of the rungs must be equal to the height. This means that one must divide 1,773,252,000,000,000m by 3, equaling 591,084,000,000,000m! For reference, the sun is 152.08 Million km away, that's 152,080,000,000m, meaning this ladder would reach the sun and back 1943.3324566 times!

[beardedmrbean]

DUBAI, United Arab Emirates (AP) — Iran announced Monday that the country's supreme leader has pardoned more than 22,000 people arrested in the recent anti-government protests that swept the Islamic Republic. There was no immediate independent confirmation of the mass release.

The statement by Iran's judiciary head Gholamhossein Mohseni Ejehi offered for the first time a glimpse of the full scope of the government's crackdown that followed the demonstrations over the September death of 22-year-old Mahsa Amini, who had been detained by the country's morality police.

It also suggests that Iran's theocracy now feels secure enough to admit the scale of the unrest, which represented one of the most-serious challenges to the establishment since the aftermath of the 1979 Islamic Revolution. Tens of thousands also were detained in the purges that followed the revolution.

However, anger still remains in the country as it struggles through the collapse of the nation’s currency, the rial, economic woes, and uncertainty over its ties to the wider world after the collapse of Tehran’s 2015 nuclear deal with world powers.

The state-run IRNA news agency quoted Ejehi as announcing the figure Monday. Iranian state media had previously suggested Supreme Leader Ayatollah Ali Khamenei could pardon that many people swept up in the demonstrations, ahead of the Muslim holy month of Ramadan, when the pious fast from dawn to dusk. Ramadan starts later next week.

Ejehi said a total of 82,656 prisoners and those facing charges had been pardoned. Of those, some 22,628 had been arrested amid the demonstrations, he said. Those pardoned had not committed theft or violent crimes, he added. His comments suggest that the true total of those detained in the demonstrations is even greater.

In February, Iran had acknowledged “tens of thousands” had been detained in the protests. Monday's acknowledgment from Ejehi offered an even higher than what activists had previously cited. However, there's been no mass release of prisoners documented in recent days by Iranian media reports or activists.

More than 19,700 people have been arrested during the protests, according to Human Rights Activists in Iran, a group that’s been tracking the crackdown. At least 530 people have been killed as authorities violently suppressed demonstrations, the group said. Iran has not offered a death toll for months.

“From day one there was no transparent accounting of who was arrested and imprisoned — before or after the mass protests these past months — which is why there’s no way to verify how many are being released now,” said Jasmin Ramsey, the deputy director of the U.S.-based Center for Human Rights in Iran.

“We also know that more than five months after the death of ... Mahsa Amini in state custody, not a single Iranian official has been held accountable for the mass killings of street protesters, nor the arbitrary imprisonments of tens of thousands.”

The judiciary's announcement also came ahead of next week's celebration of Nowruz, the Persian New Year. On Tuesday, some in Iran also mark nearly 4,000-year-old Persian tradition known as the Festival of Fire that's linked to the Zoroastrian religion. Hard-liners discourage such celebrations, viewing them as pagan holdovers.

There had been calls for anti-government protests around both events. While mass demonstrations have cooled in recent weeks, nightly chants against Iran's theocracy can still be heard in some neighborhoods of Iran's capital, Tehran.

The announcement followed a major development last week, when Iran and Saudi Arabia said on Friday that with China's mediation, they agreed to reestablish diplomatic ties and reopen embassies after a seven-year freeze in relations. That agreement could help aid an end to the yearslong war in Yemen, which sees a Saudi-led coalition battle the Iranian-backed Houthi rebels who hold its capital, Sanaa. It has also helped boost the rial in recent days against the dollar.

Meanwhile, Belarusian President Alexander Lukashenko visited Tehran and met Monday with his Iranian counterpart, Ebrahim Raisi. Iran has been supplying the bomb-carrying drones that Russia now uses in its war on Ukraine. Lukashenko, the authoritarian leader of Belarus, remains close to Russia, which used Belarusian territory to launch Moscow's invasion of Ukraine.

Lukashenko said his country and Iran would sign an unspecified set of deals valued at $100 million.

Iran “opposes external pressure, attempts to impose someone else’s will," Lukashenko said, addressing his hosts. "And how, in spite of everything, you develop modern technologies and nuclear energy. And, as we decided today with the president of Iran, we can be very useful to each other if we truly unite our efforts.”

[tacofriend]

I was going to say something about giving you 200,000,000 of the most devalued currency in the world which is the Iranian Rial, ($1USD=RIs42,300). But RIs200,000,000 is $4,628.13 USD, which is still more money than I have right now, and like yeah. If you gave me close to five grand right now, it would be life-changing.

someone please give me 200,000,000 in cash and like 2 ibuprofen you will not regret it

[almaz52almaz52almaz]

ето ваще круто всем советую ето ваще имба всем советую пользуйтесь ето круто и имба и круто и найк и ахуено

[head-post]

Iran’s central bank blocks cryptocurrency payments

The Central Bank of Iran (CBI) suddenly blocked payment gateways for cryptocurrency exchanges, marking the third such restriction in recent months.

The restriction came weeks after the central bank’s decision to freeze the bank accounts of a cryptocurrency exchange and the subsequent suspension of payment processing services in November. This was due to concerns about speculation in the Tether (USDT) market and money laundering risks.

The CBI statement came as the Iranian government reunited foreign exchange rates as the rial hit a record low against the US dollar on Saturday. However, industry leaders condemned the move as “unprofessional” and harmful to the country’s digital economy.

Operators of the cryptocurrency platform warned President Masoud Pezeshkian in an open letter that the restrictions threatened more than 5,000 skilled jobs and dozens of knowledge-intensive companies in the sector.

These restrictive and destructive decisions in technology policymaking not only eliminate Iran’s limited opportunity for economic growth through new technologies but also drive away the country’s most important asset – its capable human capital.

Meanwhile, the CBI’s intervention targets Iranian currency payment channels used by digital currency exchanges. Officials have previously warned payment service providers about unauthorised instant settlement systems that operate outside the banking structure and help avoid official channels and sanctions.

Industry supporters argue that cryptocurrency trading has provided Iranians with investment opportunities amid high inflation and limited traditional options. They also argue that blocking cryptocurrency payments stands in stark contrast to the authorities’ promises.

Read more HERE

[famouscenes3]

Iran Says 2025 'Important Year' for Nuclear Issue

Iran, bracing for a possible re-imposition of incoming U.S. president Donald Trump's "maximum pressure" policy, said on Saturday that 2025 would be an important year for its nuclear issue.

Trump in 2018 reneged on a deal struck by his predecessor Barack Obama in 2015 in which Iran agreed to curb uranium enrichment, which can yield material for nuclear weapons, in return for the relaxation of U.S. and U.N. economic sanctions.

"2025 will be an important year regarding Iran's nuclear issue," Foreign Minister Abbas Araqchi told reporters in Beijing, adding in remarks aired by Iran's state TV that he had discussed the issue in talks with his Chinese counterpart.

He did not mention Trump by name, however, or spell out how the year might be significant.

Iranian leaders' main concern may be that Trump could empower Israeli Prime Minister Benjamin Netanyahu to attack Iran's nuclear sites, while further tightening U.S. sanctions on its crucial oil industry.

The Iranian rial on Saturday hit a new all-time low against the U.S. dollar amid uncertainty about Trump's arrival in the White House on Jan. 20.

The rial plunged to 820,500 to the dollar on the unofficial market, compared to 808,500 rials on Friday, according to Bonbast.com, which reports exchange rates. The bazar360.com website also said the dollar was being sold for about 820,500 rials.

Also facing an inflation rate officially put at about 35%, Iranians seeking to shelter their savings have been buying dollars, other hard currencies, gold or cryptocurrencies, and the rial has dropped about 18% in all since Trump was elected in November.

https://www.newsmax.com/newsfront/iran-nuclear-issue/2024/12/28/id/1193157/

[globalnews1]

A briefcase filled with Iranian rial banknotes sits on display at a currency exchange market on Ferdowsi street in Tehran, Iran, on Saturday, Jan. 6, 2018.Ali Mohammadi | Bloomberg | Getty ImagesIran is confronting its worst set of crises in years, facing a spiraling economy along with a series of unprecedented geopolitical and military blows to its power in the Middle East.Over the weekend, Iran's currency, the rial, hit a record low of 756,000 to the dollar, according to Reuters. Since September, the embattled currency has suffered the ripple effects of devastating hits to Iran's proxies, including Lebanon's Hezbollah and Palestinian militant group Hamas, as well as the November election of Donald Trump to the U.S. presidency.With the fall of Syrian President Bashar al-Assad amid a shock offensive by rebel groups, Tehran lost its most important ally in the Middle East. Assad, who is accused of war crimes against his own people, fled to Russia and left a highly fractured country behind him."The fall of Assad has existential implications for the Islamic Republic," Behnam ben Taleblu, a senior fellow at the Foundation for Defense of Democracies in Washington, told CNBC. "Lest we forget, the regime ahs spent well over a decade in treasure, blood, and reputation to save a regime which ultimately folded in less than two weeks."The currency's fall exposes the extent of the hardship faced by ordinary Iranians, who struggle to afford everyday goods and suffer high inflation and unemployment after years of heavy Western sanctions compounded by domestic corruption and economic mismanagement.Trump has pledged to take a hard line on Iran and will be re-entering the White House roughly six years after unilaterally pulling the U.S. out of the Iranian nuclear deal and re-imposing sweeping sanctions on the country.Iranian President Masoud Pezeshkian has expressed his government's willingness to negotiate and revive the deal, officially known as the Joint Comprehensive Plan of Action, which lifted some sanctions on Iran in exchange for curbs to its nuclear program. But the attempted outreach comes at a time when the International Atomic Energy Agency says Tehran is enriching uranium at record levels, reaching 60% purity — a short technical step from the weapons-grade purity level of 90%.

[starseedfxofficial]

Forex Gems: Trading Insights Amid Middle East Tensions The Forex Whisperer: Advanced Insights from Middle East Tensions When geopolitical tensions rise, savvy Forex traders know it’s time to grab their metaphorical magnifying glass and start dissecting the hidden layers of market movements. The latest developments in the Middle East present a golden opportunity for those who dare to look beyond the obvious. So, let’s dive into the core insights without skipping the spice of humor and expert commentary. (Hint: No, trading isn’t just about staring at charts until your eyes cross.) The Syrian Fallout: What It Means for Forex News of Israel’s military advances into Syria and the collapse of Bashar al-Assad’s regime is more than just headline material. It’s a seismic shift that’s shaking up currency markets. With Israel’s actions against suspected chemical weapons sites and the region’s power dynamics in flux, Forex traders need to keep their ears to the ground for ripple effects in oil-dependent currencies and emerging markets. Take the Israeli shekel (ILS), for example. While it’s usually a quiet player in global Forex, military escalations have historically seen a temporary strengthening—think “safe haven” within a region of chaos. On the flip side, currencies like the Syrian pound (SYP) face even deeper devaluation as stability crumbles. Oil and the Dollar Tango: A Love-Hate Relationship Here’s where it gets juicy. With US airstrikes targeting ISIS and the strategic Golan Heights back in play, oil markets could be primed for volatility. Historically, such unrest boosts crude prices, which tends to light a fire under commodity-backed currencies like the Canadian dollar (CAD) and Norwegian krone (NOK). But wait, there’s more. The US dollar often steps into the limelight during geopolitical chaos. As global investors flee to “safe” assets, the dollar strengthens, creating opportunities (and pitfalls) in USD-paired trades. Pro tip: Look for divergences between oil price movements and USD/CAD trends for hidden trading opportunities. Iranian Watch: Nuclear Risks and Forex Tricks The collapse of Assad’s regime puts Iran in a precarious spot. With whispers of potential nuclear escalation, market participants are eyeing the Iranian rial (IRR) and its ripple effects on the broader region. While direct trading in the rial might be off the table, the broader implications for currencies tied to Iranian influence—like the Iraqi dinar (IQD)—can’t be ignored. Advanced traders should also monitor gold prices. When nuclear tensions rise, so does the allure of the shiny metal, offering a haven amidst uncertainty. Pairing this knowledge with USD weakness (often correlated with gold spikes) could lead to unique trading setups. The Biden Effect: US Policy and Forex Positioning US President Biden’s pledge to support Syria’s neighbors during this transitional period has implications for Turkish lira (TRY) traders. With ongoing skirmishes between US-backed Kurdish forces and Turkish-backed groups in Syria, expect the TRY to remain volatile. Pair this with Turkey’s broader economic woes, and you’ve got a perfect storm for speculative trading. For traders keen on contrarian strategies, Biden’s comments on not deploying ground troops and instead focusing on “a new Syria” could mean heightened US Treasury issuance to fund regional aid. This could nudge bond yields higher, affecting USD pairs. How to Trade the Fallout: Elite Tactics and Pro Tips - Pair Selection is Key: Focus on USD/ILS, USD/TRY, and USD/CAD for trades directly influenced by Middle Eastern developments. Monitor cross-pair movements like CAD/JPY for indirect oil-driven plays. - News Timing: Use an economic calendar to sync trades with major policy announcements or military updates. Market overreactions often provide entry points for contrarian strategies. - Gold and Safe Havens: Hedge against volatility with gold (XAU/USD) or the Swiss franc (CHF). Nuclear risks and regional instability often make these assets shine. - Risk Management First: With heightened volatility, set tight stop-loss orders. This isn’t a time to play the hero—survival is the goal. - Diversify Geopolitical Bets: Don’t go all-in on one currency or asset. Spread your exposure across multiple regions to hedge against unforeseen events. Final Thoughts: Don’t Just React—Anticipate Forex trading during geopolitical unrest is like surfing during a storm. Sure, the waves are big, but with the right strategy, you can ride them like a pro. Stay informed, stay flexible, and most importantly, stay calm. Remember, chaos for some is opportunity for others—so channel your inner Forex whisperer and seize the hidden gems the market offers. —————– Image Credits: Cover image at the top is AI-generated   Read the full article

[dinaritexch]

Will The Domino Effect of Currency Depreciation Reach Iraq in 2025? Iraqi Dinar Highlights.

The dramatic currency crisis sweeping through the Middle East has raised concerns about the domino effect of currency depreciation reaching Iraq in 2025. The Turkish lira dropped 38% against the US dollar in 2024. The Syrian pound and Iranian rial haven't fared better, losing 50% and 20% of their value.

Iraq's strong economic connections with these countries make it vulnerable to regional currency problems. Their combined annual trade is a big deal as it means that $20 billion, which could expose Iraq to regional currency instability. The Iraqi Dinar shows early warning signs as it trades 15% below its official Central Bank rate in unsupervised markets.

This article explores the potential ripple effects of regional currency depreciation on Iraq's economy. We'll learn about the factors that might shape the Iraqi Dinar's future in 2025 and beyond.

Understanding the Regional Currency Crisis

The regional currency landscape has undergone significant transformation across Iraq's neighboring countries. Specifically, the Iranian rial has weakened by 20%, the Turkish lira has declined by 38%, and the Syrian pound has experienced a 50% drop against the US dollar.

The current state of neighboring currencies

The severity of currency depreciation becomes evident through these key indicators:

Iranian Rial: Trading at 777,000 per dollar

Turkish Lira: Exceeding 35 per dollar

Syrian Pound: Lost over 90% since crisis onset

Key factors driving regional depreciation

External pressures and domestic challenges have consequently created a perfect storm for regional currencies. The decline of the Iranian rial stems primarily from US and European sanctions. Furthermore, the Turkish lira's depreciation results from growing fiscal deficits and budget imbalances.

Notably, excessive demand for US dollars has emerged as a critical factor across the region. The preference for physical dollars over electronic transfers has intensified, particularly in countries with devalued currencies.

Historical patterns and precedents

The historical trajectory reveals a concerning pattern. Since 2018, the Iranian Rial has lost nearly 90% of its value against the US dollar. Additionally, the Turkish Lira has experienced a similar fate, surrendering over 90% of its value in the past five years.

The banking sector's challenges have played a pivotal role in this crisis. For instance, Iraq's banking system remains underdeveloped, with only four bank branches and five ATMs per 100,000 citizens, compared to the regional average of fourteen branches and thirty-seven ATMs.

The socioeconomic impact has been particularly severe. According to UN data, 90% of Syria's population now lives below the poverty line. The situation has been exacerbated by ongoing conflicts and political instability, creating a challenging environment for currency stabilization efforts across the region.

Global Economic Factors Affecting Iraqi Dinar

Iraq's economic landscape stands uniquely vulnerable to global economic shifts, primarily due to its overwhelming dependence on oil revenues. The nation's financial structure reveals a striking reality: oil accounts for more than 99% of exports, 85% of the government's budget, and 42% of GDP.

International trade dynamics

Iraq faces major challenges with its import-dependent economy. The country earned over $1 trillion from oil exports across two decades, yet its total GDP reached only $253 billion by 2023. These numbers show how much the nation relies on imports to meet its needs.

Key trade indicators show this dependency:

Oil revenues make up 90% of state revenue

Changes in foreign exchange markets directly affect import-dependent sectors

Real non-oil GDP dropped by 9% in late 2022

Oil price implications

The relationship between oil prices and fiscal stability remains critical. Oil prices have followed a downward trajectory since mid-2022, dropping from over $120 per barrel to below $75. Moreover, the IMF projects that Iraq requires a break-even oil price of $96 per barrel for fiscal stability.

Global monetary policies

The Federal Reserve's policies have emerged as a crucial factor affecting the Iraqi dinar's stability. Subsequently, the Fed has implemented restrictions on dollar transfers to reduce currency flows to neighboring countries. These measures have created notable challenges:

Delayed or rejected Iraqi banking requests

Increased pressure on currency liquidity

Restrictions on physical dollar transfers

The monetary authority faces additional hurdles in maintaining stability through its foreign currency auction system. Overall, the central bank's efforts to modernize its liquidity management and anti-money laundering frameworks continue, though progress remains gradual against persistent structural challenges.

The Domino Effect Analysis

Iraq's economic relationships with its neighbors weave a complex web of financial dependencies. Regional currency depreciation could trigger a domino effect that goes beyond exchange rates and affects multiple sectors of Iraq's economy.

Cross-border economic dependencies

Regional economic ties in Iraq have grown massive, as yearly trade with neighboring countries exceeds USD 20 billion. The trade patterns show clear imbalances:

Trade with Iran: USD 10 billion annually (excluding fuel)

Imports from Turkey: USD 11.1 billion

Trade with UAE and China: 68.8% of total imports

Trade relationship impacts

Regional currency instability sends ripples through trade channels. Iraq's position as a major oil exporter makes it uniquely vulnerable to regional economic changes. Oil revenues make up 99% of exports and 85% of the government budget.

The banking sector's structural limitations make these challenges even harder. Commercial banks hold just 8.3 trillion dinars out of 100 trillion in circulation. This means the financial system struggles to handle external shocks.

Currency market interconnections

The currency market dynamics reveal complex interconnections. Generally, the presence of unsupervised currency markets has resulted in the Iraqi Dinar trading approximately 15% below its official value.

The presence of unsupervised currency markets has led to the Iraqi Dinar trading approximately 15% below its official value. New banking controls have further exacerbated dollar availability, with daily dollar sales plunging from a pre-2023 baseline of USD 250 million to just USD 55 million, marking a 78% decline.

The Federal Reserve's closer scrutiny has changed how transactions happen. New compliance measures rejected 80% of transactions at first, though this number has dropped to about 15% now.

Banks face big hurdles in their push to modernize. State-owned banks dominate the sector, while basic banking infrastructure and ATMs remain scarce. This reduces apparent liquidity. These structural challenges make regional currency depreciation's effect on Iraq's financial stability even more concerning.

Digital Transformation in Currency Markets

The Iraqi financial sector has seen a major change from old-school banking methods through digital revolution. The country's banking scene is going through massive tech upgrades, and seventeen licensed digital payment companies now operate in the market.

Role of electronic trading

Iraq's trading systems started changing in 2006 when the Central Bank rolled out automated clearing and settlement systems. The system rollout brought these notable results:

Real-Time Gross Settlement System implementation

Iraq Retail Payment Infrastructure launch

National Retail Switch integration

Mobile payment system deployment

E-payment transactions hit 18 trillion Iraqi dinars (USD 13.70 billion), which shows the electronic platform's true impact. These numbers point to more people using digital financial services.

Cryptocurrency influence

Notwithstanding the absence of a comprehensive regulatory framework, cryptocurrency interest continues to grow among tech-savvy Iraqis. Key growth factors include increasing individual adoption, which opens up new investment opportunities, and the emergence of DeFi platforms that facilitate cross-border transactions. 

Additionally, some view cryptocurrencies as a hedge against inflation, contributing to greater financial resilience in a region affected by political instability. The Central Bank stays cautious and focuses on developing traditional electronic payment systems instead. Cryptocurrency adoption faces major hurdles in the Iraqi market until proper regulatory frameworks exist.

Banking system modernization

Digital transformation in the banking sector stands as a key priority for Iraq's financial future. The Central Bank of Iraq focuses on these areas with each new initiative:

Integrated Financial Management Information Systems

Digital Payment Regulation No.2 of 2024 implementation

Electronic payment tools infrastructure development

These modernization efforts show promise. About 6 million Iraqi employees and retirees now use digital services. Prepaid cards have become the most popular electronic card type, with almost 10 million cards in circulation.

This change goes beyond just making things digital. The Central Bank actively promotes financial technology to boost inclusion and streamline operations. In 2018, financial institutions were approved to provide digital services, including account opening, money transfers, and bill payments through mobile banking.

Future Scenarios for Iraqi Dinar

Iraq's economic outlook for 2025 shows both challenges and opportunities. The International Monetary Fund anticipates notable growth, with the economy expected to expand by 5.3% in 2025.

Economic projection models

Iraq's fiscal health shows mixed signals ahead. The budget deficit will likely reach 7.6% of GDP, which affects the dinar's stability. Key economic indicators for 2025 include projected GDP growth of 5.3% and an inflation rate of 3.5%, reflecting moderate economic expansion alongside manageable price increases.

The oil sector is a vital part of the economy. Iraq wants to reach a production capacity of four million barrels per day by early 2025. These developments underscore the critical role of oil revenues in shaping Iraq's fiscal health amidst ongoing challenges.

Risk assessment frameworks

The Central Bank of Iraq has set up a detailed technical framework to manage risks. The main risk factors are:

Currency market volatility affecting exchange rates

Banking sector vulnerabilities with limited penetration

External payment pressures from trade imbalances

Fiscal sustainability challenges

The banking sector's structural weaknesses create the most important risks, as only 19% of adults have bank accounts. The sector's loans-to-GDP ratio is just 20%, that indicates room for growth.

Potential stabilization measures

Iraqi authorities have clear steps to keep the dinar stable. The Central Bank's strategy works to maintain the currency's value through several channels:

Foreign Reserve Management

Preserving adequate foreign currency reserves

Maintaining strategic dollar reserves for market stability

Banking Sector Reform

Implementing structural reforms to optimize efficiency

Increasing transparency in financial operations

Currency Market Controls

Operating the currency sale window without excessive reserve use

Strengthening regulatory measures to prevent currency smuggling

The government wants to vary revenue sources beyond oil. This plan includes boosting the real sector and reviving industry and agriculture to reduce imports. These measures help reduce pressure on foreign reserves and support currency stability.

The Central Bank shows steadfast dedication to keeping the dinar's value stable through interest rate adjustments and currency window operations. These interventions have helped reduce nominal exchange rate fluctuations despite recent challenges from global health crises and oil price changes.

FAQs

Why are neighboring countries' currencies depreciating, and how does this affect the Iraqi Dinar?

Neighboring countries like Iran, Turkey, and Syria are experiencing currency depreciation due to factors like sanctions, fiscal deficits, political instability, and war. This affects the Iraqi Dinar as Iraq shares significant trade relations with these nations, exceeding $20 billion annually, and operates in unsupervised currency markets where the Dinar often trades below its official rate.

What is the role of the Central Bank of Iraq (CBI) in stabilizing the Dinar?

The Central Bank of Iraq plays a critical role by regulating cash dollar issuance, managing remittances, and implementing banking reforms. In 2024, the CBI reduced cash issuance but increased remittances significantly. Despite these measures, the Dinar's market rate fluctuates due to demand dynamics rather than changes in the central bank's cash supply.

What are the potential scenarios for the Iraqi Dinar in 2025?

The Iraqi Dinar's stability depends on several factors: US fiscal policies toward Iraq, the central bank's monetary strategies, and the demand for dollars in local markets. If geopolitical tensions ease and banking reforms succeed, the Dinar may stabilize. Conversely, increased dollar demand or insufficient reforms could lead to further depreciation.

How do fluctuations in the US Dollar impact the Iraqi Dinar and global currencies?

The US Dollar's performance affects global trade and currencies, including the Iraqi Dinar. In 2024, the Dollar appreciated against Middle Eastern currencies like the Turkish Lira and Iranian Rial while depreciating against others like the Euro and Thai Baht. This volatility underscores the interconnectedness of Iraq's economy with global financial markets.

What measures can Iraq take to prevent the Dinar from depreciating further in 2025?

To mitigate depreciation, Iraq can adopt policies such as aligning its currency model with stable Gulf economies, enhancing banking transparency, curbing unsupervised currency markets, and increasing reliance on SWIFT-based transactions. Strengthening domestic production and diversifying trade partnerships can also reduce dependence on neighboring countries' volatile currencies.

What steps is the Central Bank of Iraq taking to stabilize the Dinar?

The Central Bank has implemented changes such as reducing cash issuance, increasing reliance on SWIFT-based transfers, and improving digital payment systems. It also monitors remittances and currency flows more rigorously to manage market demand and supply dynamics.

Will changes in US policies impact the value of the Iraqi Dinar in 2025?

Yes, US fiscal and monetary policies, including decisions on tariffs, inflation, and international relations, play a significant role in influencing the value of the Iraqi Dinar. The central bank's policies alone cannot fully stabilize the currency without considering external influences.

Conclusion

Iraq's economic future faces its biggest problem with regional currency instability. The Iraqi dinar remains strong against neighboring currency drops, but several factors need attention. Trade relationships worth more than $20 billion with regional partners and heavy reliance on oil revenue make Iraq's currency vulnerable to market shifts.

The banking sector's digital transformation shows promise. Iraq's market now has seventeen licensed digital payment companies, and e-payment transactions have hit 18 trillion Iraqi dinars. These changes have built a reliable financial system that can better handle external pressures.

The Central Bank's steadfast dedication to currency stability through strategic actions is significant. Smart foreign reserve management, banking reforms, and market controls serve as vital safeguards. The projected economic growth of 5.3% in 2025 points to positive momentum, even with ongoing challenges from oil price swings and regional currency shifts.

Iraq needs to broaden its revenue sources beyond oil and build a stronger digital banking system. The mix of smart financial policies, tech advances, and strategic economic planning will shape the Iraqi dinar's stability through 2025 and beyond.

Source:- Dinarit

[santro]

World's most and least valuable currencies

World's most valuable currency is Kuwaiti Dinar. World's least valuable currency is Iranian Rial.

1 Kuwaiti Dinar = 3.27 US Dollar = 274.24 Indian Rupees = 137503.27 Iranian Rial

[depictae]

10 Interesting Facts About Iran

Discover 10 interesting facts about Iran, known for its ancient civilization, Persian carpets, rich cultural heritage, and stunning architectural marvels.

Basic Information About Iran Country Full Name: Islamic Republic of Iran Continent: Asia Official Language: Persian (Farsi) Currency: Iranian Rial (IRR) Capital: Tehran Main Dish: Chelow Kebab Famous For: Ancient history, Persian carpets, poetry, architecture, and oil reserves. Size: 1.648 million square kilometers Population: Approximately 83 million Name Meaning: The name “Iran” means…

[economicsabout]

How much money is there in the world?

For such a rigidly enforced resource, this is an incredibly difficult question to answer. There are so many facets that must be considered when evaluating “money”. For the purpose of consistent figures, throughout this brief exploration, everything will be equated to the US Dollar. The US Dollar is the most popular currency in the world. It is an official currency in 5 US territories and an additional 7 sovereign countries. Many countries around the world accept the US Dollar alongside their own currency and it can be easily exchanged everywhere else.

In the United States, there is a number called “M0” that represents all of the minted money (coins and bills) in domestic circulation. This number is projected at around $1.5 trillion. However, New York city alone has over $3 trillion in private wealth. What this means is that the vast majority of money in the United States, and likely the rest of the world, is immaterial, digital.

Worldwide, M0 is projected at around $5 trillion. This is the sum of all the minted money of all currencies in circulation. However, the figure that we may be more interested in can be referred to as “broad money” or M3. This figure accounts for all funds in checking, savings, and money-market accounts; it’s essentially all digital money owned by anyone, anywhere. This figure runs much, much higher with an estimated $80 trillion in worldwide funds.

There are three more numbers of minor interest that should at least be acknowledged. The combined Gross Domestic Product of all countries is projected at $142 trillion. Currently, the world owes about $220 trillion in debt and the world’s total property value is somewhere around $220 trillion as well. While these astronomical figures could really throw a wrench in our answer, for all intents and purposes, let’s just use the nice round figure of $80 trillion, as it most closely fits the definition of how much “money” is in the world. Now, what would that number look like if we considered more than just the US Dollar?

There are 180 currencies in the world that are recognized by the United Nations. Of these 180, the most valuable currency is the Kuwaiti Dinar. Used primarily in Kuwait, an oil-rich country in Southwest Asia, one Kuwaiti Dinar (KD) has the equivalent value of $3.24. Therefore, in Kuwaiti Dinar, the total value of all currency in the world is just 24.7 trillion KD. Amazingly, all four of the world’s most valuable currencies come from the Arabian Peninsula. They are, the Kuwaiti Dinar, the Bahrain Dinar, the Oman Rial, and the Jordan Dinar respectively.

On the flip-side, right next door, Iran has the world’s least valuable currency. One US Dollar has the equivalent value of 41,994 Iranian Rial (IRR). Therefore, in Iranian Rial, the total value of all currency in the world is an unfathomable 3.36 Quintillion IRR. That number looks like this: 3,360,000,000,000,000,000. The smallest bank note printed in Iran is worth 100 IRR which has the equivalent value of about ¼ of a cent. There is also a 100,000 IRR note ($2.38).

The Vietnamese Dong (VND) prints the bank note in current circulation with the highest denomination, 500,000 VND. However, the Vietnamese Dong is the second least valuable currency in the world. One US Dollar is worth 23,194 VND. Therefore, even a bank note worth 500,000 VND has the equivalent value of just $21.56.

The currency with the highest banknote denomination in history was the Zimbabwean Dollar (ZWD), which went out of circulation in 2009 as its value plummeted. In an attempt to cope with a plummeting currency, the Zimbabwean government printed a banknote with a denomination of 100 trillion ZWD. At the time, this was only worth about $0.40. Therefore if we equate the estimated $80 trillion that exists in the world today to the extinct Zimbabwean Dollar, the total value of all currency on Earth is about 20 octillion ZWD. That number looks like this: 20,000,000,000,000,000,000,000,000,000. If you printed that much money in 500 ZWD notes, the volume of the notes would be approximate to the volume of the Earth itself.

So the short answer to the question “How much money is in the World?” is $80 trillion. But perhaps the most important thing to take away is the notion that all money is imaginary and holds imaginary value. So depending on how economically liberated one is feeling, the world’s currency can have as much or as little value as one prescribes it.

[iqdbuy]

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