At a Glance

• Dinar redenomination requires a formal law, parliamentary readings, and a final vote.
• The currency reform will not alter the dinar's exchange rate against the dollar.
• The reform fixes accounting errors and handles older, worn-out smaller banknotes.

Iraqi lawmaker Rebwar Karim stated that while the government intends to remove zeros from the dinar, no formal decision has been made yet due to pending legislative procedures, adding that there are plans to address the official-to-market exchange rate gap.

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Key Statement and Focus Area

• Rebwar Karim stated that, “The decision to remove the zeros from the dinar has its own procedures.” 
• The MP confirmed that, “Up to this moment, there is no talk of changing the value of the dinar against the dollar.”

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Rebwar Karim, a member of the Iraqi Council of Representatives and Head of the National Stance Movement bloc, who attended yesterday's meeting of the Parliamentary Finance Committee and CBI officials, told Channel8 that the redenomination of the Iraqi dinar requires a formal legislative process starting with a Council of Ministers vote, followed by a Finance Committee review. 

The project requires further approval from the Parliament Presidency and must undergo several readings and a final vote before implementation.

“However, none of these processes have taken place so far,” he said, stressing that, “the government intends to make this change.” 

Karim emphasized that no decision has been made yet because the legal procedures have not been carried out. “Removing zeros requires the enactment of a law.”

The MP clarified that currency redenomination is entirely distinct from printing new banknotes, which the Central Bank can execute independently without requiring a legislative law. 

Karim highlighted that the proposed currency reform aims to address accounting errors caused by excessive zeros and the logistical challenges of handling older, smaller-denomination banknotes. 

Additionally, the initiative seeks to reclaim an estimated 8 to 10 trillion dinars currently circulating outside the formal banking system.

On the official Central Bank of Iraq (CBI) benchmark exchange rate, the lawmaker affirmed that there have been no discussions regarding the claims, adding, “Rather, the government is working to address the existing gap between the official rate and the market rates.” 

He also stated that the government “has a plan” to resolve this matter, but this topic can only be discussed after the budget and after restructuring the dinar.

FYI

The Iraqi government is preparing to redenominate the dinar to simplify financial transactions and address accounting inefficiencies caused by high cash volume, though the process requires legislative approval and is not yet finalized .

Communications Minister Mustafa Sanad brought the issue of removing zeros from the currency to the forefront of the agenda. 

However, Iraqi government spokesperson Haider al-Aboudi emphasized that no formal decision has been made within the Council of Ministers or the Central Bank so far. 

Yesterday, the Parliamentary Finance Committee hosted Central Bank Governor Nizar Nasser Hussein to discuss the matter, at a time when the volume of cash in circulation exceeds 113 trillion dinars—94% of which is hoarded by citizens, leaving only about 8 trillion dinars within the formal banking system. 

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