Iraq Economic News and Points To Ponder Thursday Afternoon 10-1-26
The New Iraqi Dinar: Changing The Currency's Design Without Removing Zeros
Last updated: October 1, 2026 Independent/- An informed source on the monetary file revealed that the Central Bank of Iraq is moving towards changing the design of the national currency and issuing a new edition that includes updates in the form and security elements, without affecting the nominal value of the dinar or resorting to the project of removing zeros.
The source told Al-Mustaqilla on Thursday that the approach being studied within the bank is based on maintaining the current system of currency denominations and values, in exchange for redesigning banknotes and introducing security features and modern technologies aimed at raising the level of protection against counterfeiting and developing verification and tracking mechanisms related to the issuance of currency.
According to the source, the Central Bank has concepts and designs for the new currency, while the final procedures related to the required approvals and authorizations are still being completed, before moving to the implementation phases and officially announcing the details of the project.
The source indicated that the proposed approach does not include removing zeros from the Iraqi dinar, and that the Central Bank, according to available information, is not proceeding with a project to revalue the currency by reducing its nominal values, but rather focuses on updating the form of the circulating banknotes and their technical and security characteristics.
Changing the currency design, if approved, does not mean an automatic change in the dinar's exchange rate or the purchasing power of citizens, as the central bank can issue new print runs with the same nominal values, while keeping the old banknotes in circulation during a transitional phase before gradually withdrawing them according to a schedule determined by the monetary authorities.
This comes at a time when Iraq is witnessing renewed debate about the future of the dinar and the possibility of removing zeros. The Central Bank of Iraq officially denied on August 26, 2026, reports of printing a new currency with zeros removed, emphasizing that any such project, should it be decided upon in the future, would require multiple legal, regulatory, and technical stages before its implementation and announcement.
The Central Bank has also previously made changes to some denominations of the dinar without changing their nominal value. In previous years, it issued editions that included modifications to the design and some of the details and markings used on banknotes. This technically demonstrates that updating the currency's appearance does not necessarily mean changing the monetary system or the value of the dinar.
Banking experts believe that updating the currency design, if limited to replacing current banknotes with others bearing the same values, is radically different from the project to remove zeros. The former is a technical and monetary process that can aim to enhance security elements, combat counterfeiting, and improve the quality of banknotes, while removing zeros represents a broader project that affects accounting units and requires major legal, accounting, and banking arrangements.
Economic experts point out that introducing more advanced security technologies in banknotes can reduce the risk of counterfeiting and give banks and financial institutions a better ability to automatically verify cash, especially with the expanding use of counting and sorting machines and modern cash management systems.
On the other hand, experts warn that announcing any change in the currency’s design requires careful media management, because confusing a change in design with the removal of zeros and a change in the exchange rate could lead to market speculation or a rush by citizens to convert their savings into dollars or gold without economic justification.
They believe that the success of any future replacement process requires a sufficient transition period during which the old and new editions circulate together, along with a clear announcement of the replacement mechanism and the dates for withdrawing the old denominations, and a guarantee that no fees or losses will be imposed on cash holders.
The Central Bank itself affirms that any fundamental change related to restructuring currency denominations or removing zeros must go through legal, regulatory and technical stages, while granting citizens, banks and institutions a transition period that ensures the safety of the replacement process and preserves all financial rights and obligations.
The bank also affirms in its declared policy that currency management and issuance are carried out within the objectives of maintaining financial and monetary stability, warning against dealing with undocumented news related to printing money or currency management as final decisions before they are officially issued.
Information obtained by the Independent Press Agency indicates that the step, if the required approvals are completed, will be closer to issuing a new generation of Iraqi dinars in terms of form and security features, rather than launching a currency with a different value or implementing a project to remove zeros.
The final timing for introducing the new design and the mechanism for replacing the current banknotes remains linked to an official announcement from the Central Bank of Iraq, which has not yet published a decision that includes a specific date for introducing a new currency or approved images of its design.
Thus, according to the source, the proposed scenario is based on a clear equation: the dinar remains at its current values, the zeros remain as they are, while the design changes and new security technologies are added to the next version
https://mustaqila.com/الدينار-العراقي-الجديد-تغيير-شكل-العم/
Al-Moussawi Told Al-Maalomah: There Is No Final Agreement On Raising The Dollar Exchange Rate
Information/Baghdad.. MP Mukhtar Al-Moussawi confirmed on Thursday that there is no final agreement to raise the dollar exchange rate, while he pointed out that the country's economic situation requires a strategy that maintains the stability of food prices and keeps them away from speculation, as well as creating a strategic reserve that takes into account the tensions in the region.
Al-Moussawi explained to Al-Maalouma that “until this moment, there is no clear government decision pushing for an increase in the exchange rate, especially since the dollar exchange rate in the parallel market witnessed a rise a few days ago exceeding 160,000 dinars per 100 dollars, while the official exchange rate is 132,000 dinars per 100 dollars. Consequently, this difference is being exploited for speculation and profit by some.”
He pointed out "the necessity of having a government strategy to reconsider the dollar exchange rate in a way that maintains market stability and prevents speculation and the exploitation of the difference by some to make profits," noting that "regional tensions compel us to demand the necessity of having a strategic reserve of food supplies to ensure stability and reassurance, and to prevent some unscrupulous individuals from exploiting any tensions that occur to raise prices under many pretexts and excuses."
Al-Moussawi stressed that “reconsidering the dollar exchange rate is extremely important during the coming period, especially with the current crisis, while maintaining the stability of food prices.” End 25