Despite government denials, a member of the Finance Committee confirms the imminent removal of zeros from the dinar.
Jamal Kojar, a member of the Finance Committee in Parliament, confirmed today (Tuesday , August 25 , 2026) that there is a government trend towards officially removing zeros from the Iraqi dinar and issuing a new paper currency.
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According to The New Arab Network, as translated by Baghdad Today, Kujer said, “The government believes that removing zeros from the currency will bring great benefits to the country, explaining that there are requirements with ‘international’ standards that will be achieved by removing the zeros, including the transition to electronic currency trading, which will bring benefits in terms of combating corruption and developing commercial trading,” according to the network.
He added that "the Iraqi market also needs small denominations for local use, which is not currently possible with the presence of zeros," stressing that "the main goal is to prevent currency smuggling abroad, and to limit its circulation outside the Iraqi banking system, and thus reduce corruption."
He explained that “all criminal activities in the world are carried out through money that is traded outside the country’s banking system,” adding, “The government may put in place safeguards that enhance transparency in financial transactions by digitizing the currency after removing zeros from it, which helps in the process of combating financial corruption.”
The network also indicated that "the Iraqi government received recommendations from international bodies, including the United States, to remove zeros from the Iraqi currency, arguing that this would help to strengthen confidence in the Iraqi dinar and thus contribute to attracting more foreign investments," while also confirming in its report that the Central Bank of Iraq "has not yet provided a timetable for implementing the process of removing zeros," as it described it.
It should be noted that "government statements issued earlier denied the existence of efforts to remove zeros from the Iraqi currency, after the Minister of Communications, Mustafa Sand, announced that there was a government intention to remove them."
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Three Zeros, One Currency: The Risks and Rewards of Iraq’s Dinar Reform
link pukmedia
this one came out after the title I like this one better than the one below it
The issue of removing three zeros from the Iraqi dinar has intensified, prompting large numbers of people to purchase US dollars and sell their dinars. Experts warn that this trend could push the dollar exchange rate higher against the Iraqi dinar in the coming days. They also stress that the proposed currency reform could have both positive and negative consequences.
Removing Three Zeros Could Recover Eight Trillion Missing Dinars
The issue of reforming Iraq’s currency by removing three zeros from the dinar has recently become a major topic of discussion in economic, political and media circles. The issue gained further attention after Iraq’s Minister of Communications indicated that a decision had been taken to modify the currency, with the stated aim of recovering eight trillion dinars in missing state funds.
While removing zeros is technically an accounting and monetary reform measure, questions remain over the timing and underlying objectives of the proposal, particularly given Iraq’s current economic and political circumstances.
Potential Impact of Removing Three Zeros
From an economic perspective, removing three zeros could simplify everyday financial transactions, reduce the costs associated with printing and transporting banknotes, and help the Central Bank of Iraq reorganise the country’s monetary system.
However, Prof. Dr Ayub Anwar Smaqayi, a university professor and head of the Erbil Branch of the Kurdistan Economists Association, argues that the current discussion is largely a “tactic” aimed at recovering funds that have been hoarded or kept outside the banking system.
He notes that widespread corruption and the accumulation of cash outside official channels have contributed to liquidity shortages, with the government facing serious difficulties in meeting salary payments for several months. Given these circumstances, he warns that altering the currency while the economy remains unstable could create additional problems.
How Would the Process Work?
The proposed removal of three zeros would first have to be approved by the Iraqi Council of Ministers. If endorsed, the proposal would then be referred to the Iraqi parliament’s Finance Committee for a first reading before being submitted to the parliamentary presidency. It would subsequently proceed to a second reading and a final vote by MPs.
Srwa Mohammed, a member of the Iraqi parliament representing the Patriotic Union of Kurdistan (PUK) bloc, says Iraq is facing a difficult economic situation and that the government is exploring various measures to increase revenues and combat corruption.
She explains that the Ministry of Finance, in coordination with the relevant authorities, would need to submit a draft law to parliament for approval. She adds that one potential benefit of the reform would be strengthening the Iraqi currency and exposing individuals who have concealed large sums of money, as they would be required to disclose the source of their funds when exchanging the old currency for the new one.
Risks and Challenges
Experts warn that, despite its potential benefits, implementing such a reform during a period of economic and political instability could create significant risks, including:
• Dollar reserves: The Central Bank would need adequate foreign currency reserves to maintain exchange-rate stability against the US dollar following the introduction of the new currency.
• Unfavourable conditions: Iraq’s ongoing financial and political challenges could prevent the reform from achieving its intended objectives and could instead contribute to further economic instability.
Removing three zeros from the Iraqi dinar could offer several technical and economic advantages, but carrying out such a reform under Iraq’s current circumstances would require comprehensive studies, careful planning and a stable financial environment.
Without sufficient preparation and research, the reform could deepen existing economic difficulties and fail to deliver its anticipated benefits.
The debate comes as reports about the possible removal of the three zeros have prompted many people to buy US dollars and sell their dinars. Experts warn that increased demand for the dollar could push its value higher against the Iraqi dinar, placing further pressure on the national currency.
Iraq Finance Committee Recommends Postponing Dinar Redenomination Vote
link
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.
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THE 3-ZERO CHAOS IS GETTING REAL HERE'S WHAT YOU NEED TO HEAR
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