Iraq considers currency overhaul to expose looted funds

Jerusalem Post/Middle East"The decision will be made in the coming period, and it is hoped that the procedures will begin during 2027," a source in the Iraqi Prime Ministry.Follow us on GoogleIraqi dinar and US dollar banknotes are laid out on a table as members of the Shia Muslim community arrive at a centre in Iraq's southern city of Basra accepting charity donations to aid people affected by the ongoing war in Iran and Lebanon(photo credit: Hussein FALEH / AFP via Getty Images)AUGUST 31, 2026 13:17The Iraqi government is considering introducing a new currency that would remove three zeros from the dinar to simplify transactions and bring funds looted through corruption under government control, Iraqi Communications Minister Mustafa Sanad told local media. "There is a political decision regarding removing zeros from the national currency,” Sanad announced. For more stories from The Media Line go to themedialine.orgA source in the Iraqi Prime Minister's office, who preferred to remain anonymous, told The Media Line, "The decision will be made in the coming period, and it is hoped that the procedures will begin during 2027." Iraq’s central bank released an official statement that said: "There is no decision yet to print a new Iraqi currency, and any future move to restructure currency denominations or remove zeros will be preceded by several legal and regulatory stages."The US dollar is currently trading at 1,320 Iraqi dinars according to the official exchange rate, while it is trading at 1,530 Iraqi dinars per dollar on the parallel black market. The Iraqi currency is considered overvalued, with Iraqis receiving salaries in the hundreds of thousands or millions of dinars, while housing units are purchased for hundreds of millions or even billions of Iraqi dinars. An Aqeeq (agate) ring is pictured next to Iraqi dinar and US dollar banknotes are laid out on a table as members of the Shia Muslim community arrive at a centre in Iraq's southern city of Basra accepting charity donations to aid people affected by the ongoing war in Iran and Lebanon. (credit: Hussein FALEH / AFP via Getty Images)Iraq’s currency consists of several denominations, the smallest being 250 dinars, and increasing to 1,000, 5,000, 10,000, 25,000, and 50,000 dinars.Change a part of campaign against corruptionAccording to observers and politicians, the move, if approved, would be part of the government’s broader campaign against corruption, which has already targeted several politicians. These campaigns led to the discovery of trillions of dinars hidden on the farms or in the homes of some politicians. The currency in their possession will become worthless without being exchanged for the new currency, which will lead to the discovery of even more of these funds or the confiscation from those holding them.Follow us on Google