Iraq Economic News and Points To Ponder Late Monday Evening 8-24-26
Iraq Finance Committee Recommends Postponing Dinar Redenomination Vote
Daban Mohammed At a Glance
The Iraqi Finance Committee officially advises delaying the vote on removing zeros from the dinar.
Replacing banknotes without deleting zeros remains under the independent authority of the Central Bank.
Redenomination requires brand-new laws to amend civil, commercial, and penal codes across Iraq.
According to an official legal memorandum obtained by Channel8 from lawmaker Dilan Ghafoor, the Parliamentary Finance Committee has formally recommended postponing the vote on the dinar redenomination draft law.
Key Statement and Focus Area
The memorandum notes that "the process of only changing the Iraqi currency, without removing the zeros, falls strictly within the scope, duties, and responsibilities of the Central Bank of Iraq."
The proposed delay in the redenomination draft law aims to identify the most significant challenges and obstacles in implementing any changes that may occur to the currency.
The memorandum, written by Committee Chairman Uday Awad Kadhim, was dispatched to the Office of the Council of Ministers following an emergency Sunday meeting between Finance Committee members and Central Bank officials, during which they discussed strengthening monetary policy, financing the budget deficit, and implementing reforms to resolve the ongoing financial crisis.
Kadhim clarified that the Central Bank of Iraq will proceed with replacing banknotes without removing zeros during the coming period, a mandate granted under Article 36 of the amended Law No. 56 of 2004.
The memorandum stresses that changing the currency with the removal of zeros from the value of the Iraqi currency requires the enactment of a law drafted by the Prime Minister's office and sent to the Council of Representatives for legislation.
The document highlights that executing a currency redenomination necessitates comprehensive legal amendments to civil, commercial, and penal codes, along with revisions to active investment contract valuations.
Furthermore, the legislative process requires updating anti-money laundering and institutional integrity laws while clearly defining implementation timelines.
These statutory adjustments are mandatory to safely preserve the rights and financial obligations of both public and private sector creditors.
"Accordingly and based on the above, the Finance Committee recommends postponing the vote on the draft law (changing the currency and removing zeros) until extensive discussions are held among the following entities (Finance Committee, Council of Ministers, Central Bank of Iraq, Ministry of Finance, Ministry of Planning), to identify the most significant challenges and obstacles in implementing any changes that may occur to the currency," the document concluded.
FYI
The long-shelved currency redenomination debate abruptly returned to the forefront of Iraqi politics due to unexpected public announcements and a deepening domestic budget squeeze.
Yesterday, the Iraqi Parliamentary Finance Committee hosted Central Bank officials on Sunday to evaluate monetary frameworks, optimize deficit-financing strategies, and address pressing issues like public sector payroll delays and inflation metrics.
lawmaker Rebwar Karim told Channel8 today “the decision to remove the zeros from the dinar has its own procedures.”
He said although the government plans to delete zeros from the dinar, the initiative remains pending without an official decision due to incomplete legislative steps.
However, Government spokesperson Haider al-Aboudi clarified that an official decision to delete zeros from the dinar has not been finalized, adding that the Finance Committee estimated a three-to-seven-year transition for the redenomination process, which will keep the currency's actual value unchanged. https://channel8.com/english/news/64393
Iraq To Slash Three Zeros From Currency, Introduce New Notes
Aug. 24, 2026 • It also aims to curb the use of cash outside the system, which may be used for criminal activities and corruption, he explained.
ERBIL, Kurdistan Region of Iraq – Iraq is set to remove three zeros from its currency in a bid to rebrand the dinar and support digitizing transactions to combat cash outside the system used for crime and corruption, a lawmaker said Monday.
Jamal Kocher, a Kurdish member of the Iraqi parliament's finance committee, told The New Region that Prime Minister Ali al-Zaidi “has requested removing zeros from the bills. If this happens, it means that 1,000 dinars will become one dinar, 25,000 dinars will be 25 dinars.”
Earlier in August, Communications Minister Mustafa Sanad confirmed that the decision to remove the zeros and change the currency had been made.
The Central Bank of Iraq, however, has yet to formally announce a timetable for the process.
Iraq added zeros to the dinar when it was heavily sanctioned toward the end of the rule of former dictator Saddam Hussein, Kochar noted, explaining that adding zeros to a currency is an indication that it is degrading.
Asked about Iraq’s rationale for the overhaul, the lawmaker said that some neighbouring countries have taken legitimate Iraqi bills and sent back copied versions, and that smaller amounts, like cents, are needed in the market.
It also aims to curb the use of cash outside the system, which may be used for criminal activities and corruption, he explained.
“Any crime that is committed in the world, whether it is murder, organized crime, money laundering, or trading opium and hashish and those things, is all committed through money that does not go through the banking system,” said Kochar.
“Guarantees may be put in place for those using digital transactions so the currency stays under the government’s control while transparency emerges,” he stressed.
According to the lawmaker, the change will not affect people’s daily lives or purchasing power. Prices will remain fixed while the zeros are removed and smaller amounts are introduced. People may exchange the older version for the new one.
Previously, only France and Germany printed Iraqi dinars, but now the government has also approached the United Kingdom and Australia in a bid to speed up the process.
https://thenewregion.com/posts/6317 The New Region @thenewregion
Iraq is set to remove three zeros from its currency in a bid to rebrand the dinar and support digitizing transactions to combat cash outside the system used for crime and corruption, a lawmaker said Monday
Iraq Revives Plans To Remove Zeros From Dinar
Shanya Salar
At a Glance
The Finance Committee discusses currency reform
The Central Bank has prepared new designs
Reform would not change purchasing power
The process could take up to seven years
Iraq has renewed discussions over a long-planned currency reform that would remove zeros from the dinar, with the Central Bank and Parliament examining the requirements for implementing the proposal.
Key Statements and Focus Area
No change in value: The Finance Committee considers the removal of zeros an accounting and monetary reform rather than a change in the actual value of the currency. Under the proposal, removing zeros would simplify the figures used in commercial transactions, government budgets, and banking operations without changing the purchasing power of the dinar. The measure is also intended to reduce calculation and accounting errors associated with the large denominations currently used in Iraq.
Banking system: One of the main objectives is to bring an estimated 8 to 10 trillion dinars currently outside the formal banking system back into circulation through banks. The information provided indicates that a large proportion of Iraq’s cash is held outside banks, creating challenges for liquidity management and efforts to track monetary flows. The proposed currency change is therefore also being viewed as part of a wider effort to strengthen the banking system and improve control over cash circulation.
The parliamentary Finance Committee has held discussions with the Central Bank of Iraq over the proposal to remove zeros from the Iraqi dinar and introduce redesigned banknotes. The proposal remains under discussion and has not received final political approval.
According to information obtained by Channel8, the Central Bank has completed preparations for the proposed currency, including the designs and specifications of the new banknotes. The Central Bank said preparations for the currency reform have been underway since 2012.
Final samples of the proposed banknotes have reportedly been prepared, covering all denominations. The plan would involve printing approximately 7.5 billion individual banknotes, with estimated costs of around 250 billion dinars. Germany, France, Australia, and the United Kingdom have reportedly been selected to handle production of the new currency.
The currency reform cannot proceed without a legal framework. The government would need to submit a special draft law to Parliament before the Central Bank could formally implement the currency change. If approved, the replacement process would be carried out gradually rather than through an immediate withdrawal of existing banknotes.
The full process is expected to take between three and seven years. Despite the Central Bank’s preparations, there has been no final decision to implement the currency reform. The project remains dependent on political approval and the passage of the required legislation.
FYI
Iraq has previously considered removing zeros from the dinar as part of efforts to modernize its monetary and banking system. Similar currency redenomination projects in other countries have generally involved exchanging old notes for new denominations while maintaining equivalent real values, meaning that removing zeros by itself does not create additional purchasing power.
The Central Bank’s earlier plans were linked to broader reforms aimed at reducing the amount of cash circulating outside banks and encouraging greater use of formal financial institutions. The success of such a reform would depend not only on replacing banknotes but also on public confidence, banking infrastructure, and monetary stability.