BAGHDAD: The Iraqi government is considering introducing a new currency that would remove three zeros from the dinar, potentially simplifying everyday transactions while supporting efforts to uncover funds allegedly accumulated through corruption.
Iraqi Communications Minister Mustafa Sanad told local media that a political decision existed regarding removing zeros from the national currency.
Meanwhile, an anonymous source in the Iraqi prime minister’s office told The Media Line that authorities could make a decision in the coming period, with implementation procedures potentially beginning during 2027.
However, Iraq’s central bank stressed that officials had not yet formally decided to print a new currency.
Central Bank Says No Final Decision Taken
The central bank said any future restructuring of currency denominations or removal of zeros would first require several legal and regulatory steps.
Currently, the official exchange rate stands at around 1,320 Iraqi dinars to the US dollar, while the dollar reportedly trades at approximately 1,530 dinars on the parallel market.
Moreover, Iraqis commonly receive salaries worth hundreds of thousands or millions of dinars, while property transactions can involve hundreds of millions or billions.
Existing banknotes include denominations of 250, 1,000, 5,000, 10,000, 25,000 and 50,000 dinars.
Currency Reform Could Support Anti-Corruption Drive
Observers and politicians say the proposed reform could also complement Iraq’s wider campaign against corruption.
Authorities have reportedly discovered trillions of dinars hidden in properties and farms during investigations involving political figures.
Consequently, replacing existing banknotes could require holders of large cash reserves to exchange them through regulated financial channels.
Supporters believe this process could expose previously concealed funds or allow authorities to investigate suspicious holdings.
Nevertheless, the central bank’s statement makes clear that the proposal remains under consideration.
If approved, Iraq would therefore need to establish legal procedures, exchange arrangements and regulatory safeguards before replacing existing notes and implementing a redenominated dinar.
