Over 92% of Iraq’s issued dinar remains outside banks at 100.18 trillion

Part of the Iraqi capital, Baghdad. Baghdad (IraqiNews.com) – The volume of physical banknotes circulating outside Iraq’s commercial banking system remained above the 100-trillion-dinar mark through late August 2026, accounting for 92.8% of the country’s total currency in circulation despite a minor month-on-month contraction, according to Central Bank of Iraq (CBI) monetary indicators. Data published by CBI revealed that cash holdings outside banks edged down by 609 billion dinars, slipping from 100.792 trillion dinars in late July to 100.183 trillion dinars at the end of August 2026. Out of an aggregate 107.998 trillion dinars in total issued currency, commercial bank vault reserves totaled just 7.815 trillion dinars, leaving nearly 93% of liquid supply in the hands of the public and informal commercial channels. On an annualized trajectory, cash hoarded outside formal deposit institutions expanded significantly, increasing by 7.623 trillion dinars compared to the 92.560 trillion dinars registered at the close of 2025. The persistent concentration of liquidity outside banking vaults underscores deep-rooted structural reliance on paper cash, highlighting the ongoing institutional headwinds facing financial inclusion, electronic payments, and domestic deposit mobilization in Iraq.