Iraq Economic News and Points To Ponder Late Friday Evening 10-17-25
Bondlady Site Admin & Member Comments
Does The Central Bank Intend To Remove Zeros From The Dinar?
Economy | 11:08 - 10/14/2025 Mawazine News - Baghdad - The Central Bank of Iraq announced, on Tuesday, its gold reserves and its intention to remove zeros from the Iraqi currency. The Deputy Governor of the Central Bank, Ammar Khalaf, said in a press statement, followed by Mawazine News, that: "The Central Bank of Iraq has increased its gold holdings from 90 tons to 170 tons at the present time."
Khalaf added that "this amount of gold now constitutes 20% of the total assets of the Central Bank, and Iraq currently ranks fourth in the Arab world in gold holdings and 29th globally."
The Deputy Governor of the Central Bank confirmed that "there is no intention to float the exchange rate of the Iraqi dinar, so as not to affect the stability of the economy at the present time."
Khalaf revealed that "there is an intention to remove zeros from the Iraqi dinar in order to ease the burden of hoarding banknotes on the financial sector." https://www.mawazin.net/Details.aspx?jimare=268477
Central Bank: Gold Reserves Reach 170 Tons, With Intention To Remove Zeros From Dinar
Buratha News Agency1132025-10-15 The Central Bank of Iraq announced, on Tuesday, October 14, 2025, its gold reserves and its intention to remove zeros from the Iraqi currency.
Deputy Governor of the Central Bank, Ammar Khalaf, said in a press statement, "The Central Bank of Iraq has increased its gold holdings from 90 tons to 170 tons at the present time."
Khalaf added, "This amount of gold now constitutes 20% of the Central Bank's total assets, and Iraq currently ranks fourth in the Arab world in gold holdings and 29th globally."
The Deputy Governor of the Central Bank confirmed that "there is no intention to float the Iraqi dinar exchange rate, so as not to affect the stability of the economy at the present time."
Khalaf revealed that "there is an intention to remove zeros from the Iraqi dinar to ease the burden of banknote hoarding on the financial sector." https://burathanews.com/arabic/economic/466485
Bondlady Site Member calaciura: I'm not sure if AI is accurate when we talk about deleting the zeros. My concern is will our notes in the United States will have those zeros dropped as well, which would mean it would lop the currency in the value. What are your thoughts
Bondlady Site Administrator tlm724: Hey calaciura, we are in very interesting times for sure !! It's difficult to know exactly what is going to happen but I will try to shed some light on the subject. Most recently the Prime Minister's financial advisor, Mazhar Mohammed Salih said on 10/10/2025 that
"Controlling inflation is the primary goal for maintaining price stability and the purchasing power of the Iraqi dinar."
and " Monetary policy also succeeded in maintaining the positive effects of the official exchange rate of 1,320 dinars per dollar and limiting the effects of the parallel exchange market on the stability of the pricing system."
lastly ""Iraq is witnessing a significant price boom, which is an indicator of the success of economic policy implementation. This is a remarkable development, unprecedented in the past ten years, as this stability is reflected in the country's cash income."
Bondlady Site Administrator tlm724: Saleh is also in Washington today meeting with officials from the US Treasury Department and the Federal Reserve
Bondlady Site Administrator tlm724: The above information is important because the CBI is trying and succeeding in controlling inflation and stabilizing the economy/exchange rate. These are critical to setting the stage for the possible removal of the 3 zero's. They would never attempt the removal without a stable environment. The fact that they are considering this is encouraging, something, WE as investors have never seen. On a side note :
" When a government drops three zeros from a currency, it is called redenomination. This is a symbolic change that makes large numbers easier to use and calculate, but it does not directly affect the currency's purchasing power or value. The change is intended to simplify transactions and can be a psychological tool to signal the end of high inflation, but its long-term success depends on accompanying economic policies"
"In monetary economics, redenomination is the process of changing the face value of banknotes and coins in circulation. It may be done because inflation has made the currency unit so small that only large denominations of the currency are in circulation."
Bondlady Site Administrator tlm724: I wish I had a clear and definite idea of what comes next but I do not. It is times like these were I wish our Bondlady was here to guide us ! I think our best course of action is to stay the course and watch for forth coming changes. If the removal happens it will take time to print bank notes etc... and there will be transition period just as there was in 2003.There are many Dinar notes outside of Iraq that I think there would be a time frame for exchanging it but as far as the value that remains the question. What it means for us is yet to be seen but I promise we will be here for you and each other each step of the way !! Thank you
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