Iraq Economic News and Points To Ponder Late Sunday Evening 9-6-26
Removing Zeros From The Dinar: Parliamentary Finance Committee Sets Conditions For Proceeding With This Matter.
Today 12:19 The Information/Baghdad... Member of the Parliamentary Finance Committee, Amer Rahim, confirmed on Saturday that voting on a bill to remove zeros from the local currency requires extensive discussions and the enforcement of a package of laws within the Parliament. He indicated that raising this issue at the present time is premature.
Rahim told Al-Maalouma, “The step of removing zeros from the currency cannot be decided hastily; rather, it requires a series of lengthy and in-depth discussions within Parliament.” He explained that "the process is closely linked to the economic reality and requires amending and enacting several supporting financial laws and regulations to ensure market stability."
He added, "Raising the discussion about this topic at this stage is premature, given the financial challenges that require first providing a comprehensive economic and banking environment before embarking on any structural change to the currency."
He pointed out that "any measure of this kind without careful and prior study may negatively impact the purchasing power of citizens."
Rahim stressed "the need to focus currently on supporting the stability of the national currency and implementing banking reforms, while leaving the issue of removing zeros until economic conditions are more favorable and full legislative support is available within the House of Representatives." End/25z
The Central Bank Reassures Depositors: No Bank Failures... And Liquidity Exceeds 60%
Baghdad Today - Baghdad The Central Bank of Iraq reassured depositors on Saturday (September 5, 2026) about the safety of the banking sector, stressing that “imposing supervisory or guardianship committees on a licensed bank does not mean its bankruptcy, but rather comes within the framework of precautionary and legal supervisory measures aimed at protecting the rights of depositors and ensuring the stability of banking operations.”
The bank stated in a statement received by "Baghdad Today" that "all licensed banks participate in the Deposit Guarantee Company, which is responsible for compensating depositors in the event that the bank fails to meet its obligations, in accordance with applicable laws."
He added that "depositors' funds are protected under laws, regulations and instructions," stressing the need to follow up on bank procedures, particularly those related to ensuring depositors' access to their funds without delay.
He pointed out that "the Iraqi banking system has sufficient liquidity to enable it to manage its operations efficiently in the face of potential pressures," indicating that "the ratio of liquid assets to short-term liabilities exceeds 60%."
It also emphasized the application of the best international banking standards to the banking sector, ensuring its safety and compliance and providing competitive traditional and digital financial services, without compromising the rights of depositors.
https://baghdadtoday.news/305588-60.html
The Central Bank Reassures Depositors And Confirms The Protection Of Their Funds
The Central Bank of Iraq confirmed on Saturday that all depositors' funds in licensed banks are protected, while noting that the Iraqi banking system enjoys sufficient liquidity to manage its operations efficiently.
The bank stated in a statement that "the Central Bank of Iraq's application of its powers to impose supervisory or trusteeship committees on one of the banks licensed by it directly (does not mean the bank's bankruptcy) as has been circulated in some media outlets, but rather it is a legal precautionary supervisory measure to ensure the safety of the bank and the stability of its operations in general and to protect the rights of depositors in particular."
He added that "the Central Bank of Iraq applies the best international banking standards to the banking sector to ensure its safety, compliance and provision of the best financial services without compromising the rights of its depositors."
He explained that "all licensed banks are participating in the Deposit Guarantee Company, which is one of the pillars of banking stability, through its function of compensating depositors in the event that the bank fails to meet this in accordance with the applicable laws."
The bank added that “depositors’ funds are protected under applicable laws, regulations and instructions, and the Central Bank of Iraq pays great attention to monitoring the procedures of banks, especially those related to ensuring that depositors can access their funds at any time they wish without delay.”
The bank confirmed that "the Iraqi banking system has sufficient liquidity to manage its operations efficiently and under any potential pressures; the ratio of liquid assets to short-term liabilities is more than (60%)." https://burathanews.com/arabic/24xUeJ_t
Baghdad Airport Warns Of Currency Exchange Delays After CBI Closures
Shafaq News- Baghdad Baghdad International Airport on Saturday warned travelers of possible delays in currency exchange services after the Central Bank of Iraq (CBI) closed several exchange companies operating at the airport.
The airport urged passengers who need to exchange currency before traveling to arrive well ahead of their scheduled flights, saying the closures could create congestion and longer waiting times.
It did not specify how many exchange companies were closed or the reasons behind the CBI’s decision
Baghdad Airport Announces The Closure Of Exchange Companies By Order Of The Central Bank
2026-09-05 Shafaq News - Baghdad On Saturday, the Baghdad International Airport administration announced that the Central Bank of Iraq had closed a number of exchange companies operating at the airport, urging travelers to arrive early due to the expected surge in currency exchange activity.
The administration stated in a statement received by Shafaq News Agency, “To our esteemed travelers, whose travel requires the completion of currency exchange procedures, we urge you to arrive at the airport early and well before the flight time, due to the closure of a number of exchange companies operating at the airport by the Central Bank of Iraq, which may lead to congestion and delays in the currency exchange process.”
The Baghdad Airport administration urged the concerned travelers to arrive well before the flight time, in order to avoid any delays that might affect travel procedures. https://www.shafaq.com/ar/اقتصـاد/مطار-بغداد-يعلن-عن-غلق-شركات-صرافة-ب-مر-البنك-المركزي
Date Output To Hit 150K Tonnes In Iraq’s Diyala
2026-09-06 / Shafaq News- Diyala Diyala's date production is expected to reach about 150,000 tonnes during the 2026 season, up roughly 20,000 tonnes from last year, the province's Agriculture Directorate said on Sunday.
Mohammed al-Mandlawi, a spokesman for the Directorate, told Shafaq News that the current season has seen further expansion in the cultivation of rare and commercially important date varieties, particularly Barhi and Medjool. New palm orchards have also been established, with more than 60,000 palm offshoots planted so far.
"Diyala's palm sector has expanded significantly in recent years," he added, noting that the number of palm trees in the province has reached more than 2 million.
On Friday, the Ministry of Agriculture announced that Iraq has achieved self-sufficiency in wheat and dates, detailing that the number of date palms in the country has risen from about 12 million after 2003 to 22 million in 2026.
Read more: Iraq’s date harvest thrives in extreme heat, but water crisis bites
https://www.shafaq.com/en/society/Date-output-to-hit-150K-tonnes-in-Iraq-s-Diyala
No More International Sanctions On Iraqi Banking Sector.
Iraqi Media Network@iraqmedianet Translated from Arabic
Central Bank Governor Nizar Nasser Hussein:
◾ No sanctions from international entities on the banking sector after today, and we continue the reform process in coordination with Oliver Wyman company
◾We invest in the United States as the safe haven and the only country that granted Iraq immunity, and investment risks in other countries are significant
◾ The issued currency base amounts to 107 trillion dinars, and what circulates in the markets approaches 40 trillion dinars
◾ Currency change is under the Central Bank's authority, and deleting zeros requires legislation in the House of Representatives
◾ The current government is managed with a private sector mindset, and the media's role is important in improving Iraq's international image
◾We have new lending initiatives to support important and vital projects
https://x.com/iraqmedianet/status/2096576576024359410
CBI Governor: Currency Changes Within CBI Scope
The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects
Baghdad (IraqiNews.com) — The Governor of the Central Bank of Iraq (CBI), Nizar Nasser Hussein, affirmed on Sunday, September 6, 2026, that redesigning or issuing new currency denominations falls strictly under the legal jurisdiction of the central bank, whereas re-denominating the currency by deleting zeros requires formal legislation passed by the Council of Representatives.
Speaking during an economic dialogue with financial specialists and reported by the Iraqi News Agency (INA), Hussein outlined ongoing banking sector restructuring programs overseen in technical partnership with international consultancy Oliver Wyman, while providing comprehensive updates on monetary circulation, sovereign foreign investments, and international banking compliance.
Key Monetary and Institutional Positions
Currency Re-denomination vs. Currency Design: Hussein clarified the legal division of monetary authority: updating currency notes, aesthetics, and security specifications remains an autonomous CBI prerogative, but deleting zeros from the Iraqi Dinar necessitates primary statutory approval by parliament.
Monetary Mass Breakdown: The total sovereign issued monetary mass stands at 107 trillion IQD, while active liquidity circulating within domestic market transactions approaches 40 trillion IQD, reflecting persistent physical cash-hoarding outside formal bank balance sheets.
Banking Sector Reforms & Sanctions Status: Ongoing structural audits and institutional reforms are advancing in direct coordination with Oliver Wyman.Hussein stated that international restrictions on Iraqi financial institutions are being systematically addressed, affirming that international confidence in the CBI remains robust.
Non-Dollar Foreign Exchange Clearances: Seven Iraqi commercial banks previously cleared to conduct trade transactions in currencies other than the U.S. Dollar (such as the UAE Dirham, Euro, and Chinese Yuan) are slated to commence operational activities in the near term.
Depositor Guarantees (Al-Taif Islamic Bank): Addressing concerns surrounding Al-Taif Bank, Hussein reassured markets that the majority of depositor funds remain fully secured, confirming that the Central Bank will intervene directly to cover liabilities should any capital shortfall emerge.
Sovereign Reserves in the United States: Iraq continues to anchor its primary foreign sovereign reserves and investments within the United States, citing U.S. sovereign immunity protections and high asset safety compared to risk profiles present in alternative foreign jurisdictions.
Private-Sector Governance Model: Emphasized that the current administration operates under private-sector-aligned economic management, alongside plans to launch specialized credit initiatives directed toward strategic infrastructure and productive enterprises.
Central Bank Policy and Liquidity Overview
Financial Parameter / Policy Area Status / Metric Regulatory & Economic Context
Total Currency Issued (M0) 107 Trillion IQD Total domestic monetary liability base
Currency Redesign & Specs 8 Full CBI Legal Authority Handled internally via CBI executive board
Deleting Zeros (Re-denomination) Requires Parliamentary Statute Needs legislative enactment by Council of Representatives
Restructuring Advisor Oliver Wyman Comprehensive audit & compliance integration
Alternative-Currency Lenders 7 Authorized Private Banks Imminent launch of non-USD cross-border clearing
Depositor Protections Guaranteed Coverage (Al-Taif) CBI backstop commitment against liquidity gaps
Reserve Custody Venue United States (Federal Reserve) Leverages sovereign immunity and low asset risk
Governor Hussein’s statements draw a clear regulatory boundary between cosmetic or security upgrades to the national currency and structural re-denomination. By emphasizing that eliminating zeros requires legislative consent, the CBI signals that any future re-denomination strategy must align with broader fiscal reforms approved by lawmakers.
Furthermore, committing state backstops for depositor funds at private institutions like Al-Taif, combined with international compliance audits via Oliver Wyman, serves to stabilize depositor confidence at a time when domestic banking liquidity faces close scrutiny.