Removing Zeros From The Iraqi Dinar: A Government Move Reopens The Issue.
October 23, 2026Last updated: October 23, 2026
The Independent - The issue of removing zeros from the Iraqi currency has returned to the forefront of economic discussions, following statements by a member of the Parliamentary Finance Committee, Riyadh Al-Tamimi, in which he revealed a government trend to remove zeros from the Iraqi dinar or change the currency, in a move that reopens one of the most prominent monetary issues that has remained on the table for years without moving to the stage of comprehensive implementation.
Al-Tamimi said, in a statement carried by local media, that “there is a government trend to remove zeros from the currency or change it,” without revealing a specific timetable or details of the procedures that the concerned authorities may take to implement this trend.
These statements come at a time when the Iraqi economy is facing challenges related to the stability of the dinar exchange rate, the regulation of cash transactions, and the development of the banking system, which raises questions about the nature of the project, its objectives, and the extent of its connection to the financial and monetary reforms that the authorities are seeking to implement.
The project to remove zeros from the currency is a monetary measure aimed at redefining the nominal value of monetary units and simplifying arithmetic and accounting operations, without necessarily meaning an increase in the purchasing power of the dinar or an improvement in its actual value against foreign currencies.
For example, if it is decided to remove three zeros, the sum of one million dinars may become a new thousand dinars, with prices, salaries, deposits and financial obligations being recalculated in the same proportion, so that their real economic value does not change as a result of the conversion alone.
Removing zeros is different from changing the exchange rate; the former relates to renaming monetary units, while the latter is related to the value of the dinar against foreign currencies, which is a fundamental difference in understanding the potential effects of any future decision.
Experts in monetary affairs believe that the success of such a step requires extensive legislative, technical and banking preparations, including updating payment systems, ATMs and accounting software, in addition to organizing the process of replacing banknotes and raising citizens’ awareness of the transfer mechanisms.
The project also requires the establishment of clear controls to protect the rights of depositors, salary earners and retirees, and to prevent the exploitation of the transition period to raise prices or make inaccurate transfers of monetary values.
In the latest official statement, the Director of Media at the Central Bank of Iraq, Haider Ghazi, confirmed on October 19, 2026, that removing zeros requires legal legislation, due to its connection with debts, obligations, and fines stipulated in the applicable laws, explaining that the process, if approved, would be primarily of an accounting nature.
The governor of the Central Bank of Iraq had explained last September that changing the currency falls within the bank’s powers, while removing zeros requires legislation from the House of Representatives, which highlights the difference between the two legal paths between issuing new banknotes and redefining the nominal value of the dinar.
The Central Bank had previously denied, in an official statement dated August 26, 2026, the news regarding the printing of a new Iraqi currency with zeros removed, stressing that any future decision in this regard would be subject to legal, regulatory and technical stages, with a transitional period specified to ensure the protection of the financial rights and obligations of citizens and institutions.
These positions indicate that the debate regarding the future of the Iraqi currency remains open between the option of updating the banknotes in circulation and the option of removing zeros, while no final official decision has been issued that specifies the implementation mechanism or the date for starting the currency replacement.
Thus, MP Riyad Al-Tamimi’s statements gain new importance in bringing the issue back to the parliamentary level, but they do not in themselves mean the approval of the project or the start of its implementation, as the transition from orientations and discussions to actual implementation remains linked to the completion of legislative procedures and the official announcement of details by the competent authorities.
The most prominent question facing Iraqi citizens and markets remains: Will the authorities move towards issuing a new edition of the dinar in its current denominations, or towards restructuring the currency by removing zeros? This is a question whose final answer is still contingent on upcoming official decisions. https://mustaqila.com/حذف-أصفار-الدينار-العراقي-توجه-حكومي-ي/
Central Bank: The Prime Minister's Actions Contributed To Convincing The US Federal Reserve To Ensure The Smooth Flow Of Dollar Cash
Baghdad – WAA Mahmoud Dagher, advisor to the governor of the Central Bank of Iraq and spokesman for the bank, confirmed on Saturday that increasing shipments of cash dollars to Iraq will contribute to market stability and strengthen the value of the Iraqi dinar. He indicated that each shipment amounts to about half a billion dollars, with expectations of new shipments that may reach a value of one billion dollars.
Dagher told Al-Iraqiya News, as reported by the Iraqi News Agency (INA): “Iraq finances its imports mainly through bank transfers and credits that are transferred directly to exporters, away from the cash market, while the percentage of cash transactions does not exceed 10%, and is allocated to meet the needs of travelers, scholarship recipients, students, and some other purposes.”
He added that “the Prime Minister’s reference to increasing cash dollar shipments came from experience and knowledge of the nature of the Iraqi market, which is characterized by its high sensitivity to the supply of cash dollars,” indicating that “increasing the quantities of cash dollars in the market pushes towards strengthening the value of the Iraqi currency and bringing it closer to its real value at a level of 152,000 dinars per 100 dollars.”
He explained that "this sensitivity is related to the nature of trade dealings with some countries, as well as the importance of providing cash dollars to reassure market participants and holders of foreign currency," expressing his hope that "the arrival of the new shipments will contribute to achieving stability in the market."
He pointed out that "increasing the supply of cash dollars through the various means adopted by the Central Bank enhances the state of reassurance in the market, as prices are not determined solely on the basis of actual supply, but are mainly affected by future expectations."
He added that "the expectation of companies and individuals to continue the flow of cash dollars in larger quantities leads to a decrease in informal demand for dollars outside of banks licensed by the Central Bank, which is reflected positively on the stability of the exchange rate."
Regarding the size of the cash shipments, Dagher explained that "the value of a single shipment arriving by air to Iraq is close to half a billion dollars, and two shipments have arrived, while previous cash dollar transfers faced difficulties due to the security instability and military operations that the region witnessed."
He pointed out that "the actions of the Prime Minister and the Central Bank of Iraq contributed to convincing the US Federal Reserve of the importance of ensuring the smooth flow of cash dollar shipments to Iraq, which contributes to reassuring the local market."
He confirmed that "there is a shipment close to being expected to arrive in Iraq, in addition to the possibility of other shipments with a total value that may reach one billion dollars, equivalent to the cargo of two planes, to meet market demand," noting that "the continuation of this process is also linked to calming the security and military situation in the region."
Regarding agreements for the supply of cash dollars, Dagher explained that “the Central Bank of Iraq agrees at the beginning of each year with the US Federal Reserve on the size of its annual needs for cash dollars, which may amount, for example, to 10 to 12 billion dollars, to arrive via one or two shipments at intervals, with the provision of the necessary security conditions for their transport.”
He added that "the Central Bank is simultaneously seeking to expand the use of bank cards in financial transactions, as Iraqis have begun to rely on them more for shopping, paying fees and meeting their various needs in dollars. However, the level of awareness regarding the use of cards is still below the required level, which leads some citizens to prefer cash transactions."
Dagher noted in his speech that “increasing cash dollar shipments at the current stage is an appropriate step to enhance market stability, and that the continued flow of these shipments will contribute to reassuring traders and positively influencing their expectations, which constitute a key factor in determining the exchange rate.” https://ina.iq/ar/economie/277199-.html
Iraq Expects More Dollar Shipments As Central Bank Seeks Market Stability
Iraq expects additional shipments of physical US dollars as the Central Bank seeks to stabilize the foreign-exchange market and strengthen confidence in the Iraqi dinar, central bank adviser and spokesperson Mahmoud Dagher said Saturday.
Dagher said each shipment is worth approximately $500 million, with further deliveries potentially totaling $1 billion, subject to logistical and regional security conditions. Channel8 English https://www.facebook.com/Channel8English
Statement By Mahmoud Dagher, Advisor And Spokesperson To The CBI Governor:
10/25/26, Iraq News Agency Channel Thanks to the Prime Minister's efforts, we have secured an assurance from the US Federal Reserve for the smooth supply of US dollar cash.
The increase in the supply of US dollar cash will strengthen market stability and curb demand in the black market.
Currently, the amount of US dollar cash transported per shipment has reached approximately $500 million. In the future, an additional $1 billion in US dollars is expected to arrive in cash. The expansion of the US dollar cash supply will contribute to the appreciation of the Iraqi dinar. https://x.com/mikangumi2011/status/2114177484111647117