Al-Alaq served as CBI governor since 2014 and was the architect of the 2023 exchange rate stabilisation at 1,300 IQD/USD — a reform that successfully contained inflation and helped build Iraq's foreign reserves toward the $100 billion milestone Iraq crossed in 2026. His tenure laid a critical foundation. What Iraq now needs is a governor with the international credibility to take that foundation decisively forward.
Nizar Nasser Al-Amiri is precisely that figure. His entire CBI career was dedicated to building Iraq's Anti-Money Laundering and Counter-Terrorism Financing framework — the compliance infrastructure that determines whether Iraqi banks can maintain correspondent banking relationships with global financial institutions. Asharq Al-Awsat reported on 19 June 2026 that the Nasser appointment was part of a broader government reshuffle affecting security and economic portfolios, reflecting PM al-Zaidi's determination to honour commitments made to Washington.
Who Is Nizar Nasser — and Why His Background Is Bullish for IQD
A CBI governor whose professional identity was formed around international compliance standards is a qualitatively different signal than a standard monetary policy appointment. Nizar Nasser spent his career inside the CBI's AML/CTF office — the division responsible for ensuring Iraq's financial system meets the requirements of the Financial Action Task Force (FATF), the global watchdog that governs banking sector integrity.
An Iraqi economist quoted by Iraqi News in June 2026 issued a stark warning: failure to meet FATF terms risks placing Iraq on the financial blacklist — a designation that would sever Iraqi banks from international dollar-clearing networks. That warning is now effectively answered by the appointment itself. Iraq has placed its most senior AML specialist in the CBI's top chair.
For IQD holders tracking Iraq's revaluation preparation pathway, this matters because FATF compliance is not a bureaucratic checkbox — it is the gateway through which a currency gains genuine international credibility. A currency operating in a FATF-compliant financial system can engage global institutional investors, clear through international correspondent banks, and ultimately be repriced by markets that trust the underlying institutional framework.
Every building block matters. Appointing an AML governor is one of the most concrete building blocks Iraq could lay right now.
The US-Iraq Strategic Agreement: What Was Agreed on 16 June
Tom Barrack's 16 June 2026 visit to Baghdad produced a detailed package of bilateral commitments, confirmed by the Iraqi Embassy in Washington and Kurdistan 24:
Energy investment: A Memorandum of Understanding was signed with US firm TI Capital for a $4–5 billion rehabilitation of the historic Kirkuk-Baniyas oil pipeline over 2–3 years. US energy company Excelerate Energy is developing a floating LNG import terminal at Khor al-Zubair to address Iraq's electricity deficits.
Financial governance: The US Embassy in Baghdad confirmed on 19 June 2026 that Iraq formally agreed to address long-standing deficiencies in its financial monitoring systems — the direct AML/CTF commitment that maps onto Nizar Nasser's mandate as the new CBI governor.
Strategic partnership reaffirmation: Both sides committed to a "strong and mutually beneficial" partnership covering security, sovereignty, and economic development. PM al-Zaidi is expected to visit President Trump at the White House in mid-July 2026 (Kurdistan 24 / The Arab Weekly, June 2026).
This level of US engagement in Iraq's financial governance connects directly to the Federal Reserve cooperation framework that underpins any meaningful IQD transition. Washington is not just encouraging reform from the sidelines — it is actively co-designing the compliance infrastructure. That is an unusually constructive signal for those positioned in Iraqi Dinar.
FATF Compliance: The Structural Gateway to IQD Appreciation
The mechanics of why FATF compliance matters to IQD's long-term trajectory are worth spelling out clearly. Iraq's dollar settlement system — through which Iraqi banks process international transactions — depends on correspondent banking relationships with major US and European institutions. Those institutions are legally required to avoid counterparts in non-compliant FATF jurisdictions.
A fully FATF-compliant Iraq is an Iraq whose banks can settle international transactions freely, whose businesses attract foreign investment without friction, and whose currency operates within a system that global institutional players can engage with directly. That is the structural foundation for IQD appreciation — an institutional mechanics argument, not speculation.
The digital banking infrastructure the CBI has been building through 2026 provides the technical layer. FATF compliance provides the international permission layer. With Nizar Nasser now leading the CBI, both layers are converging under a single mandate for the first time.
Iraq's cashless payment directive — targeting early July 2026 for government institutions — will generate the transaction records and audit trails that FATF assessors require. Each digitally-processed government payment becomes evidence of systemic financial transparency. Iraq is building the infrastructure that makes compliance demonstrable, not merely declarable.
What This Means for the IQD Exchange Rate: The Path Ahead
The CBI has maintained the official exchange rate at 1,300 IQD/USD since early 2023. That rate has been confirmed for Iraq's 2026 Federal Budget, and the CBI issued a categorical rejection of a forged document circulating in June 2026 that falsely claimed the rate was being moved to 1,600 (Iraqi News, 17 June 2026). The foundation is solid and the CBI is defending it assertively.
For IQD holders, stability at 1,300 is the platform, not the ceiling. The redenomination and structural reform pathway is a multi-phase process where each phase depends on the prior one completing successfully. FATF compliance, digital payment infrastructure, correspondent banking access, $100B+ reserves, and a governor with direct AML credentials are the precise prerequisite phases that analysts have identified as conditions for any meaningful IQD repricing.
Those phases are now converging more sharply than at any previous point. Investors who have been tracking the latest Iraq currency developments and accumulating IQD during this structural preparation period are positioned ahead of the milestones that will define the next chapter. If you have been waiting for a signal that the compliance architecture is genuinely advancing — this appointment is that signal.
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Frequently Asked Questions
Why was Ali al-Alaq removed as CBI Governor?
No official statement has been issued detailing the reasons for Ali al-Alaq's removal as of late June 2026. Shafaq News and Al-Furat News confirmed the change on 18 June 2026, two days after PM al-Zaidi concluded meetings with US envoy Tom Barrack. Al-Alaq had led the CBI since 2014 and oversaw the 2023 stabilisation of the official exchange rate at 1,300 IQD/USD — a tenure that built important foundations for IQD's current stability.
Who is Nizar Nasser, Iraq's new CBI Governor?
Nizar Nasser Al-Amiri previously headed the Central Bank of Iraq's Anti-Money Laundering and Counter-Terrorism Financing Office. His appointment as governor signals a leadership-level commitment to aligning Iraq's banking system with FATF international compliance standards — a structural prerequisite for expanded correspondent banking relationships and sustained IQD credibility in global markets.
What is FATF and why does it matter for the Iraqi Dinar?
The Financial Action Task Force (FATF) is the international body that sets anti-money laundering and counter-terrorism financing standards for global banking. Countries that fail FATF assessments risk being blacklisted, which severs their banks from international correspondent networks and dollar-clearing systems. Iraq's formal commitment to address FATF deficiencies — confirmed by the US Embassy on 19 June 2026 — removes a key institutional obstacle on the path to IQD's international credibility and long-term appreciation potential.
What did Tom Barrack's Baghdad visit produce for Iraq's economy?
Tom Barrack's 16 June 2026 visit produced a US-Iraq strategic agreement covering energy, security, and financial governance. Key outcomes included a $4–5 billion MoU for Kirkuk-Baniyas pipeline rehabilitation with TI Capital, an LNG terminal project with Excelerate Energy at Khor al-Zubair, and a formal Iraqi commitment to address financial monitoring deficiencies. PM al-Zaidi is expected to visit the White House in mid-July 2026.
What is Iraq's current official IQD exchange rate?
The CBI has maintained the official rate at 1,300 Iraqi Dinars per US Dollar since early 2023. This rate is confirmed in Iraq's 2026 Federal Budget. In June 2026, the CBI explicitly rejected a forged document falsely claiming the rate would shift to 1,600 IQD per USD, reaffirming its commitment to monetary stability.
Is Iraq at risk of FATF blacklisting?
An Iraqi economist quoted by Iraqi News in June 2026 warned that complacency in implementing AML/CTF protocols risked severe consequences including blacklisting. However, Iraq's appointment of its most senior AML expert as CBI Governor and its formal US-confirmed commitment to address financial monitoring deficiencies indicate the government is moving decisively toward full compliance. The direction of travel is clearly constructive for IQD's long-term outlook.
No official timeline or rate target has been announced by the CBI or Iraqi government. The structural reforms underway — FATF compliance, digital payment infrastructure, $100B+ foreign reserves, and expanding correspondent banking access — are building the institutional conditions analysts associate with currency appreciation potential. Investors tracking these milestones are positioned during what many characterise as the structural preparation phase for sustained IQD strength.
Where can Australians buy authentic Iraqi Dinar?
Australian and New Zealand residents can purchase authentic, verified Iraqi Dinar banknotes from Dinar Exchange Australia, an AUSTRAC-enrolled currency exchange provider operating since 2011. For information on authenticating IQD notes, visit the Iraqi Dinar security features guide.
Dinar Exchange Australia is AUSTRAC-enrolled (Enrolment No. 100311410) and has supplied authentic Iraqi Dinar notes to Australian and New Zealand customers since 2011. We are a currency exchange provider, not a financial advisor — consult a licensed financial advisor before making any investment decisions.
