Custom Search

10 Things the Central Bank of Iraq (CBI) Said About the Iraqi Dinar (IQD) in 2025

1. February 19: CBI's Dollar Distribution System Among World's Most Monitored

Following meetings with the US Treasury and Federal Reserve in Dubai, the CBI reported recognition of Iraq's US dollar distribution system as one of the most monitored and controlled globally, effectively limiting manipulation and illicit dollar outflows. The bank emphasized significant transformation in international transfers aligning with global banking standards.

The CBI urged reliance on official channels for updates and warned against misinformation.

2.  February 27: Cash Transactions will Gradually Decline

Ali Mohsen Al-Allaq, Governor of the Central Bank of Iraq (CBI), highlighted significant progress in digital payments, citing an increase in ATMs and e-wallets, which helped boost financial inclusion to 40% from 20% in just two years, supported by CBI initiatives.

He noted that Iraqi banks are undergoing major transformations, adopting internationally accredited financial systems to enhance cross-currency transactions and banking operations. Looking ahead, he envisioned banks shifting from traditional entities to smart digital platforms, issuing digital financial identities to facilitate seamless transactions.

3. May 8: Dinars to Dollars -- Official List of Approved Banks

The Central Bank of Iraq (CBI) has announced that pilgrims can purchase dollars through designated banks and companies in Baghdad and other provinces.

4. September 4: CBI Launches Inter-Wallet Money Transfers

The Central Bank announced the launch of inter-wallet money transfer services, enabling individuals and businesses to conduct financial transactions with greater speed and flexibility. The CBI said this development marks a qualitative step in enhancing financial inclusion, supporting digital transformation, facilitating the movement of funds, and strengthening the business sector.

5. November 19: CBI Clarifies Role of Investment Department

The Central Bank issued a statement outlining the role of its Investment Department in supporting exchange rate stability. The department's objectives focus on maintaining confidence in the dinar.

6. November 21: CBI Issues Detailed Instructions for Exchanging Dinars

The Central Bank issued comprehensive instructions setting out criteria for trading and replacing banknotes, including standards for fit and unfit currency, procedures for damaged notes, and mechanisms for counting and sorting.

7. November 24: CBI Firmly Denies Any Plans to Change Exchange Rate

The Central Bank rejected rumours of a possible exchange rate modification, calling such speculation aimed at disrupting markets and undermining economic stability. The bank confirmed there is no intention whatsoever to amend the exchange rate of the Iraqi dinar.

8. December 2: Digital Dinar Under Development; Exchange Rate Not a Fiscal Tool

Governor Ali Mohsen Al-Alaq stated that the digital dinar project is under implementation, but requires time and robust infrastructure before launch. He stressed that the exchange rate should not be used as a tool to address structural fiscal gaps, warning that a devaluation of the dinar would harm low-income groups and erode confidence in the currency.

9. December 17: Currency Supply Reduced by 5.5%

The CBI reported a 5.5 percent decline in currency issued during the third quarter of 2025, falling to 99,681 billion Iraqi dinars from 104,127 billion Iraqi dinars in the same period of 2024.

10. December 18: Inflation Drops to Historic Lows

The Central Bank of Iraq (CBI) reported that Iraq's inflation rate fell to -0.8 percent in the third quarter of 2025, down from 3.5 percent in the same period of 2024.

See also:

8 Things the IMF Said About Iraq and the Dinar in 2025

2026: The Year Iraqi Dinar Speculators Finally Strike Gold?

By John Lee.

The Central Bank of Iraq (CBI) has presented detailed updates on its banking-sector reform programme, with Governor Ali Mohsen Al-Alaq outlining structural plans aimed at rebuilding a compliant and modern financial system.

Al-Alaq said the engagement of Oliver Wyman followed restrictions on dollar transactions imposed on a number of Iraqi banks, noting that the consultancy is supporting deep reforms to ensure full adherence to international standards. He added that there are reassurances regarding the gradual return of affected banks to normal operations once required reforms are completed.

All Iraqi banks have signed the reform document, the Governor confirmed. Compliant institutions will be allowed to conduct transactions in other foreign currencies through a phased approach, under close monitoring by international counterparts.

On digital transformation, Al-Alaq stated that the digital dinar project is under implementation, but requires time and robust infrastructure before launch.

He reaffirmed the Bank's commitment to price stability by maintaining low inflation through a stable official exchange rate, warning that a devaluation of the dinar would harm low-income groups and erode confidence in the currency. He stressed that the exchange rate should not be used as a tool to address structural fiscal gaps, which instead require reforms to strengthen domestic revenues, control spending, diversify the economy, and support the government's direction.

See also:

Top 10 Dinar Articles from November

IMF Explains Iraq's Exchange Rate Arrangement

CBI Denies Dinar Revaluation Rumours as Inflation Falls

(Source: CBI)

The following were the ten most read dinar-related articles on Iraq Business News for the month of November:

1. CBI Instructions for Exchanging Dinars
2. CBI to Support Dinar Stability
3. CBI Denies Dinar Revaluation Rumours as Inflation Falls
4. The Iraqi Dinar Revaluation Deception: 10 Persistent False Claims Exposed
5. Donald Trump and the "Great Iraqi Dinar Revaluation"
6. Dinar RV: What does Sudani's Victory mean for Speculators?
7. Dinar RV: Will Iraqi Election Speed the Process?
8. Iraqi Dinar: Govt Attempts to Preserve Value
9. Stability of the Iraqi Dinar Exchange Rate: CBI Paper
10. Iraqi Dinar Prospects: Reality Check After Six Months of Trump

The previous month's listing can be viewed here.

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1 

By John Lee.

The Central Bank of Iraq (CBI) has said that its monetary policies have pushed inflation to historically low levels, adding that there is no intention to amend the exchange rate of the Iraqi dinar (IQD).

In a statement issued on Monday (24th November), the bank rejected rumours of a possible exchange rate change, describing it as speculation aimed at disrupting the market and undermining economic stability.

Statement from the Central Bank of Iraq:

This unofficial translation is provided in good faith for general information only. While every effort has been made to ensure accuracy, Iraq Business News accepts no responsibility for any errors, omissions, or misinterpretations.

Central Bank of Iraq Confirms Exchange Rate Stability and Achieves Lowest Inflation Levels in the Region

As the end of 2025 approaches, the Central Bank of Iraq has announced the achievement of tangible progress in its strategic objectives relating to maintaining stability in the general price level, as the inflation rate recorded a decline to historic levels considered the lowest in the region, supported by its monetary policies and considered measures despite current economic challenges.

The Central Bank clarified in an official statement that the Bank's Law No. (56) of 2004, particularly Article 1/4/a, clearly defines its core functions in formulating and implementing monetary policy, including exchange rate policy. In this context, the Bank confirmed that there is no intention whatsoever to amend the exchange rate of the Iraqi dinar, in line with its central objective of ensuring price stability, an objective that has been successfully achieved during the past period.

The statement emphasised that the Central Bank continues to support exchange rate stability, reinforced by optimal levels of foreign reserves of currencies and gold.

The Central Bank also confirmed its continuation in meeting all banks' requests for external enhancement in US dollars and other foreign currencies such as the Chinese yuan, Turkish lira, Indian rupee and UAE dirham, in addition to the continuation of bank card settlements and personal transfers through MoneyGram and Western Union, as well as cash currency sales for travel purposes, noting that there is no pressure whatsoever on current foreign reserves.

The statement noted that any external statements or opinions relating to changing the exchange rate of the Iraqi dinar do not express the Central Bank's position, and represent interpretations aimed at disrupting the market and inciting speculation and affecting the stability of the national economy.

(Source: CBI)

See also:

CBI to Support Dinar Stability

CBI Instructions for Exchanging Dinars

By John Lee.

The Central Bank of Iraq (CBI) has issued a statement setting out its criteria for trading and replacing banknotes.

This unofficial translation is provided in good faith for general information only. While every effort has been made to ensure accuracy, Iraq Business News accepts no responsibility for any errors, omissions, or misinterpretations.

Instructions and Standards for Trading and Exchanging Banknotes and Counting and Sorting Mechanisms

The Central Bank of Iraq, pursuant to its Law No. 56 of 2004 as amended, is responsible for determining the denominations of Iraqi currency (paper and metallic), their specifications and designs, printing paper banknotes and minting metallic coins. It is also responsible for their destruction and replacement, determining defective notes, and has the authority to refuse to exchange such currency (paper and metallic) or to confiscate it if the circumstances set forth in these instructions are met. Iraqi banknotes are homogeneous in all their denominations, have absolute legal tender status, and are accepted by the Central Bank of Iraq and its branches, banks, institutions and the public. Discrimination between denominations by imposing a specific denomination on the public or refusing to accept a specific denomination is unacceptable and is considered contrary to law. We request all banks to comply with the instructions and standards for trading and exchanging banknotes and the counting and sorting mechanisms as set out below:

1. Standards for Trading Banknotes:

A- Banknotes Fit for Circulation

A banknote issued by the Central Bank of Iraq remains fit for circulation if it has been subject to any of the following:

Firstly: If it has sustained one or more tears not exceeding 3 cm that have been repaired with transparent adhesive tape on one or both sides and this has not affected its features.

Secondly: If it has sustained a cut in one of its corners within 2 cm and this has not affected its features.

Thirdly: If it shows signs of circulation and use, and has not sustained damage or harm affecting its appearance, colour or size.

B- Banknotes Not Fit for Circulation

Firstly: Banknotes are deemed not fit for circulation if one of the descriptions listed below applies to them, and their holders shall be compensated for their full value [with the exception of damaged notes specified in paragraph (1/b/Secondly/3)] immediately upon presentation to government and private banks and their branches. Banks shall subsequently deposit them with this Bank or one of its branches, and the equivalent amount shall be credited to their accounts without imposing any penalty.

1. If the banknote is worn or damaged despite not being torn and not having lost parts.
2. If the banknote consists of two parts (with different numbers) and its area approximates the area of the original banknote and is secured with adhesive tape.
3. If the banknote is secured with one or more transparent adhesive tapes along its length or width.
4. If the banknote has cuts in more than one corner.
5. If the banknote is defectively printed (in terms of design, size, colour, or other security features that the genuine banknote bears).
6. If it contains stamps or writing that do not affect its external appearance.
7. If the banknote has lost less than 50% of its area.

Secondly - Banknotes Damaged Due to Burning, Burial or Any Other Cause:

Banknotes damaged due to burning, burial or any other cause not mentioned in paragraph (1/b/Firstly) shall be received by this Bank and its branches exclusively according to the following mechanism:

1. Required Documents:

a) Civil status identification or unified card or departmental identification and residence card with the citizen's telephone number.

b) Confirmation from a police station or judicial authority in the case of banknotes damaged as a result of gunfire or contaminated with blood due to accidents.

c) Provision of proof of the source of funds as follows:

• For amounts exceeding 10,000,000 dinars (ten million dinars) up to 25,000,000 dinars (twenty-five million dinars), presentation of departmental identification if an employee is required, or a salary slip showing the amount of income and length of service, or proof of a source of income commensurate with the amount to be exchanged. A tradesman must provide proof of practising his profession through a professional practice licence from the relevant sectoral authorities, or a shop lease contract, or production vehicle registration, and other proof of a source of income commensurate with the amount.
• For amounts exceeding 25,000,000 dinars (twenty-five million dinars) up to 100,000,000 dinars (one hundred million dinars), presentation of property ownership documents, shares, sales contracts or any official documents proving the legitimacy of the source of such funds (company ownership deed, partnership or contracting or supply contract) commensurate with the submitted amount is required.

2. In the event of dissatisfaction with the required documents submitted due to their lack of authenticity or their disproportionality to the submitted amount, the applicant shall be referred to the Legal Department for the purpose of providing a written undertaking whereby he assumes legal and criminal responsibility for the accuracy of the information provided and that such funds came from legitimate sources and are not connected with any illegal work or suspicious operations.

3. A penalty of 10% of the value of the damaged banknotes shall be levied in favour of this Bank due to their damage resulting from misuse, burial, burning, or any other cause, with the exception of banknotes damaged due to circulation as detailed in paragraph (1/b/Firstly), which shall be exchanged without imposing a penalty.

4. In the event that it is not possible to count the damaged banknotes, they shall be estimated by a committee formed for this purpose, and the committee shall issue its decision within fifteen working days.

2- Confiscation of Damaged Banknotes:

Damaged banknotes not fit for circulation as described below shall be confiscated, and their holder or the party that submitted them shall be notified of the confiscation decision. Anyone whose banknotes have been refused and confiscated has the right to submit a request to the Governor or his delegate through the Director General of Issue and Treasury or the Director General of the Bank Branch to reconsider the decision, and the decision of the Governor or his delegate shall be final:

1. If changes have been made to the external appearance of the banknote as a result of writing, drawing, printing, stamps or containing adhesive material.
2. If the banknote has lost 50% or more of its area or consists of two parts with one side, and in the event that there is evidence convincing the Central Bank that the missing parts of the notes have been completely destroyed, partial or full compensation shall be provided for them.

3- Confiscation of Counterfeit and Perforated Notes:

a) Counterfeit notes shall be confiscated and whoever possessed them shall be provided with a receipt confirming receipt of such notes by the cashier or a designated employee at the Central Bank of Iraq and its branches and all banks and their branches, and the details (number of counterfeit notes, their denominations, the name of the depositing customer in whose deposits they appeared and his account number) shall be recorded in a register by the cashier.

b) Confiscated counterfeit notes shall be stamped with the counterfeit stamp bearing the name of the bank and branch and sent to the Central Bank by official letter containing the information in paragraph (a) above.

c) Banks must act in accordance with our letter numbered (9/4/551) dated 1/12/2024 in the event of discovering counterfeit notes.

d) A banknote if changes have been made to it to make its appearance similar to a genuine note by placing or joining different parts of counterfeit or non-conforming currency.

e) Banknotes perforated with four holes in a single banknote that leaked from cancelled banknotes prepared for destruction in our (Mosul) branch after its occupation by terrorist gangs in 2014, where the holes were sealed for the purpose of circulating them as shown in Annex No. (1), shall be confiscated. The banking system must confiscate them and deliver them to the Central Bank of Iraq.

4- Counting and Sorting Mechanisms:

a) Banks must prepare counting and sorting centres with an area commensurate with the volume of their deposits, and must seek to acquire modern machinery and update it continuously to ensure the counting and sorting of banknotes received from their customers, whilst employing qualified workers to do so, provided that we are supplied with the numbers and types of machines used at the head office and its branches.

b) Banks shall send their cash deposits to the vaults of this Bank and its branches after counting and sorting them and separating the damaged ones in bags bundled of good quality and sealed using sewing machines designated for sewing bags, and an additional strip shall be placed during sewing to increase the strength of the bag, with adhesive tape of a colour matching the colour of the denomination bundled inside the bag, and an identification card placed on the bag describing its contents of banknotes, the name of the bank, the type of denomination, and the name of the person who bundled the bag, with the deposit date included either on (the bag or the identification card). It is preferable to fill each bag with the name of one cashier containing (40) bundles, each bundle (1,000 notes) securely tied on both sides by machines designated for this purpose, each bundle containing (10 packets), each packet containing (100 notes) with two identification cards in the first (100) notes and the last (100) notes stamped with a stamp bearing the name of the bank, the three-part name of one cashier, the type of denomination and the date. In the event that there is more than one cashier's name in one bag or identification papers not belonging to the depositing bank, discrepancies shall be recorded against the bank.

c) The name of a cashier cannot be determined for discrepancies discovered in the bank's deposits if the counting and sorting operations in this Bank were carried out through comprehensive machines, and the discrepancies shall be recorded against the bank.

d) One bag (40 bundles) shall be filled in two patterns as follows:

Firstly: Denominations (250, 500, 1,000, 50,000) dinars shall be vertically (7) bundles for five rows, making their number (35) bundles. As for the remaining five bundles, two of them shall be horizontally from the sides and the remaining three in the middle vertically, making the number (40) bundles.

Secondly: Denominations (5,000, 10,000, 25,000) dinars shall have a base of (4) bundles horizontally in two rows and a height of (10) bundles to make the total bundles in the bag (40) bundles.

e) For organisational purposes, banks must commit to notifying the Central Bank of the date and amount of deposits in both currencies (local and foreign).

f) Banks must open windows for exchanging damaged and defective banknotes for the public, and announce this through identification boards and advertisements, organise a special register for damaged currency, and deliver it to this Bank and its branches, promote circulation with banknotes of small denominations, and supply all bank branches with them.

g) Banks shall deposit damaged banknotes received from their customers or from the general public for any quantity, even if it is a single banknote, provided they are well sorted and actually damaged, and sent with letters explaining their condition and amounts according to a delivery timetable to be determined by the Issue and Treasury Department. In the event that there are banknotes fit for circulation in your damaged deposits and in large quantities, this is considered a banking violation for which the bank shall be held accountable.

h) Authorised persons to review this Bank/Issue and Treasury Department shall be nominated through the electronic platform designated for this purpose, as well as the names of workers used by the bank to transport cash deposits into this Bank, their addresses and identity documents, provided they carry identification badges specific to the bank. Otherwise, the bank shall bear legal responsibility.

i) Correspondence with this Bank shall be signed by the Director General for government banks and the authorised director for private banks and the regional director for foreign branches or their deputies in their absence.

5- Mechanism for Counting and Sorting Banknotes at the Central Bank of Iraq:

a) Penalties imposed on discrepancies discovered in your deposits of Iraqi banknotes shall be calculated as follows:

Firstly: Any surplus discovered in the bank's deposits shall be credited to its current account.

Secondly: Any shortage discovered in the bank's deposits shall be debited to its current account and a penalty shall be imposed in the manner determined by the Bank on the value of the banknotes (shortage), and the penalty rate has currently been set at (100%) of the value of the banknotes with compensation for the shortage from its account.

b) In the event of discovering counterfeit notes within the bank's deposits (whether conforming to or different from the declared denomination), they shall be confiscated and recorded as a shortage in both cases (surplus or shortage of 100 notes), and the penalty rate shall be recorded in the manner determined by the Bank. The penalty rate has currently been set at (500%) of the value of the discovered counterfeit notes with compensation for the shortage from the bank's account.

c) When Iraqi banknotes appear that differ from the declared banknotes, their number shall be recorded as a shortage in both cases (surplus or shortage of 100 notes) with imposition of a shortage penalty of (100%), and the (different denomination) notes discovered in the bank's deposits shall be credited to its current account.

Fifthly: When non-Iraqi currency denominations appear, they shall be delivered to the bank's authorised representative and recorded as a shortage in both cases (surplus or shortage of 100 notes) with imposition of a shortage penalty of (100%) of the declared denomination.

Sixthly: Banknotes perforated with four holes referred to in paragraph (3/e) discovered within the bank's deposits shall be confiscated and recorded as a shortage in both cases (surplus or shortage of 100 notes), with imposition of a shortage penalty as in paragraph (5/a-Secondly).

b) The bank has the right to object to the counting and sorting results within one week from the date of being notified of the results, and the bank's authorised representative is permitted to view the video recording taken by surveillance cameras of the process of opening the bank's bags.

c) Official correspondence and communication shall be with the Banks Follow-up and Reconciliation Section, and results of counting and sorting operations and copies of cashiers' identification papers shall be sent via email ([email protected]). Identification papers shall be destroyed after seven days from notifying the bank of discrepancies, and the bank shall not have the right to claim them.

d) Receipt and delivery of deposits or withdrawals of banknotes in both currencies (local and foreign) shall be during official working hours, currently set from (8:30 - 2:00), and no vehicles or persons affiliated with banks shall be permitted to enter outside these times. These deposits and withdrawals must be transported by armoured vehicles from or to this Bank. In the event that your deposits are delayed beyond the times mentioned above for reasons convincing to the management of this Bank and its branches, such deposits may be received as a trust for a period not exceeding one working day by means of a trust deposit form, provided that the received amounts are bundled and sealed with the bank's seal in a manner ensuring they cannot be opened except in the presence of its authorised representative on the morning of the following working day for the purpose of withdrawing the trust and conducting the initial examination.

e) The responsibility of the Central Bank of Iraq and any bank or cashier or any person is at the point at which the banknotes leave their possession, and it is assumed that the person receiving the banknotes should not leave the receipt point before confirming the amount. The recipient of banknotes from this Bank may request to carry out counting operations himself and with whomever he wishes from the personnel of his department, under the supervision of Central Bank staff, including the provision and preparation of all counting requirements including counting and bundling machines. After completing the counting process, the bank becomes responsible for the banknotes it pays even if they bear identification cards of the parties from which they were received.

f) In the event that the bank discovers an error in its deposits (surplus or shortage) before conducting the counting and sorting operation for those deposits, it must notify the Issue and Treasury Department at the end of the deposit day or at the beginning of the following day by sending an official letter specifying the error amount and type of denomination precisely. After the counting and sorting operations for those deposits, confirmation shall be made of the conformity of the difference amount with what is mentioned in the bank's letter in the presence of the authorised representative, and compensation for the shortage from the bank without imposing a penalty or delivery of the surplus, if any, by official report.

g) In the event that a bank retains identification cards belonging to the Central Bank or another bank and includes them in its deposits and releases them for circulation in that manner, this is considered a violation for which the bank shall be held accountable.

6- Foreign Currency Banknotes

a) Cash Deposits: This Bank receives deposits of foreign currency banknotes subject to counting and sorting fees for all denominations and all issues according to the mechanism set out below:

Firstly: Compliance with the official deposit times mentioned in paragraph (5/d).

Secondly: Sending an official letter to this Bank authorising the bank's employees to deposit foreign currency banknotes by means of a deposit slip showing the details of the amount and stamped with the bank's seal, the name of the authorised representative and his signature.

Thirdly: Sending an electronic memory device containing the numbers of the deposited banknotes with a paper list of numbers for each (100) notes, and in the event of non-conformity of numbers, the numbers recorded by the Bank shall be adopted.

Fourthly: Banks shall send their foreign cash deposits (dollars and euros) after counting and sorting them and packing them according to currency denominations to the vaults of the Central Bank of Iraq and packing them in good quality bags (thick nylon). One bag shall contain (10) bundles (ten bundles) as a maximum, each bundle containing (1,000) notes (one thousand notes) tied securely, distributed into (10) batches (ten batches), each batch containing (100) notes (one hundred notes) bundled in nylon bags and sealed by heat sealing or sewing them with the designated machine after adding a strip to increase the strength of the bag, and placing an identification card on the bag describing its contents of banknotes, the name of the bank, the type of denomination and the deposit date, with inclusion of the name of the person who bundled the bag.

Fifthly: Foreign currency banknotes deposited shall be counted and sorted on the same day, and in the event of discrepancies, the bank's authorised representative shall compensate directly. In the event that counting and sorting them on the same day is not possible, they shall be deposited in the foreign currency vault pending counting and sorting, and the work date shall be determined later.

Sixthly: Counterfeit foreign notes (dollars and euros) shall be confiscated with compensation for the shortage by the bank's authorised representative.

Seventhly: In the event of a shortage within deposits of foreign currency banknotes (dollars and euros), it shall be compensated by the bank's authorised representative.

Eighthly: When a surplus appears in foreign currency banknotes, it shall be delivered to the bank's authorised representative by means of a receipt of receipt.

Ninthly: When foreign currency banknotes appear that differ from the declared banknotes, they shall be replaced with the same denomination and any shortage compensated through the authorised representative.

Tenthly: One bag shall be filled by placing two bundles horizontally in two rows, making the number of bundles (8) bundles. As for the last two bundles, they shall be vertically for the third row, making the number (10) bundles.

Eleventhly: When damaged foreign cash deposits appear within the bank's deposits and are rejected by the counting and sorting machines, the bank shall have the option of compensating for the number of notes or this Bank exchanging them through the Federal Bank, provided the bank bears the exchange cost.

Twelfthly: The bank shall be provided with a confirmation receipt in the event that the accounting entry cannot be made, and they may be received as a trust as in paragraph (5/d).

b) Cash Payments:

Firstly: Cash payments through the foreign currency sale and purchase window:

1. Providing the bank with a written undertaking upon receipt of the participation amount in the foreign currency sale and purchase window obliging it to distribute the share of the companies participating with it according to the electronic distribution of this Bank and sending the undertaking within (48) hours.

Secondly - Cash Payments from the Bank's Balance with this Bank:

1. The bank shall commit to submitting tables in Excel format with the numbers of foreign currency banknotes received distributed to the final beneficiary in instalments or a single instalment, and in the event that it does not distribute all or part of the amount, we shall be informed by official letter showing the amount remaining within its vaults.
2. The bank may not submit more than one request to withdraw the amount in one day.

c) Criteria relied upon in rejecting foreign currency banknotes (dollars and euros) during counting and sorting operations if one of the descriptions listed in detail below applies to them:

Firstly: If it has sustained a cut in one of its corners or was torn or has lost any part of the note area.

Secondly: If it has sustained a tear and has been repaired with transparent adhesive tape from any side.

Thirdly: If it contains a large stamp or several small stamps that affect its features.

Fourthly: If it shows signs of circulation and use (worn) that affect its appearance or features.

Fifthly: If foreign materials have adhered to it and affected its features such as inks, dyes, glues, ground, cooked or paste materials, fats or oils.

Sixthly: If it has been stored in incorrect storage conditions leading to it yellowing or emitting a musty smell.

7- Mechanism for Transporting Cash Deposits

All banks must use armoured vehicles belonging to them or to entities specialised in transporting funds for the purpose of transporting cash deposits from and to this Bank and between banks, and provide us with the types and numbers of armoured vehicles or the entity responsible for transport.

8- Compliance with the Instructions Set Out Above

1. In the event that banks do not comply with the applicable instructions and banking violations are repeated and there is no response to our letters when requested, the Issue and Treasury Department shall recommend referring the violating bank to the Committee for Determining Penalties Imposed on Banks and Non-Banking Financial Institutions in accordance with the Central Bank of Iraq Law.

9 - The aforementioned instructions shall come into force from the date of issuing the letter and shall replace all our previous letters and circulars in this regard.

 

See also:

CBI to Support Dinar Stability

CBI Denies Dinar Revaluation Rumours as Inflation Falls

The Dinar Page

(Source: Central Bank of Iraq)

By John Lee.

The Central Bank of Iraq (CBI) has issued a statement clarifying the objectives and functions of its Investment Department:

[See also: CBI Instructions for Exchanging Dinars and CBI Denies Dinar Revaluation Rumours as Inflation Falls]

Objectives

1. To mitigate risks associated with the investment of foreign reserves whilst achieving acceptable returns thereon.
2. To support exchange rate stability through the provision of foreign currencies to meet the requisite requirements for financing balance of payments needs and to facilitate multiple channels for funding banks and financial institutions operating in Iraq.
3. To manage and reduce risks arising from the currency of receipt of Iraqi crude oil revenues, as the principal sovereign resource and primary source of foreign currency requirements in Iraq.
4. To maintain continuity of critical operations within the Department during crises and emergencies, with ongoing updates to contingency arrangements.

Functions

1. To manage, invest and execute transactions on foreign reserves through investment in liquid foreign assets and the implementation of investment operations thereon to achieve acceptable returns in accordance with the Central Bank of Iraq Law No. (56) of 2004, as amended.
2. To prepare reports on balances held with central banks, financial institutions and commercial banks on a daily, monthly, quarterly and annual basis.
3. To maximise the sole sovereign return through the management, notification and monitoring of Iraqi crude oil export credits.
4. To enhance banks' balances with our correspondent institutions abroad and to execute transfers on behalf of the Ministry of Finance.
5. To execute investment operations and conclude transactions on foreign reserves.
6. To prepare the annual plan and strategic plans pertaining to foreign reserves.
7. To execute all financial transactions through the SWIFT department in accordance with the standards and specialised language of the unified global system of the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
8. To undertake periodic and ongoing updates to the SWIFT system and to correspond with banks operating in Iraq regarding matters relating to the monitoring of procedures to be implemented by them.

(Source: Central Bank of Iraq)

See also:

CBI Denies Dinar Revaluation Rumours as Inflation Falls

Dinar RV: What does Sudani's Victory mean for Speculators?

By Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Dinar RV: What Does Sudani's Victory Mean for Speculators?

Following Tuesday's parliamentary election, Iraqi Prime Minister Mohammed Shia Al-Sudani's Reconstruction and Development coalition emerged as the largest bloc in the new assembly.

Predictably, dinar speculation communities are buzzing with excitement, convinced this political development brings them closer to the mythical revaluation, or "RV", that will make them wealthy overnight.

The reality? Sudani's electoral success changes nothing about the fundamental impossibility of the dinar RV fantasy.

The Latest Chapter in a Familiar Story

Every Iraqi election produces the same cycle in dinar speculation forums: initial euphoria, elaborate theories connecting the election to imminent revaluation, breathless predictions from self-proclaimed "gurus," and eventually, silence as nothing happens. Then the cycle begins anew with the next political milestone.

Al-Sudani's coalition victory is already being woven into RV narratives. Speculators claim his economic policies, his relationships with international institutions, or his commitment to "reconstruction and development" are secret codes signaling revaluation plans. Some are likely citing fabricated "sources" claiming Sudani has privately committed to an RV once his government is formed.

None of this is true.

Why Political Stability Doesn't Equal Currency Miracles

It's worth acknowledging what Sudani's apparent re-election actually might mean for Iraq. Political continuity could potentially provide:

• More consistent economic policymaking
• Continued infrastructure development efforts
• Maintained relationships with international partners
• Progress on anti-corruption initiatives

These are genuinely positive developments for Iraq as a country. Gradual economic improvement could, over many years, lead to modest appreciation of the dinar through normal market mechanisms. But this has nothing to do with the "RV" that speculators imagine.

The RV fantasy involves an overnight revaluation where the dinar suddenly becomes worth hundreds or thousands of times its current value. This would require Iraq to declare that each dinar is now worth $1, $3, or even higher-rates that appear in speculation forums despite being economically absurd.

The Economic Reality Check

Consider what such a revaluation would actually do to Iraq:

• Exports would collapse. Iraqi oil is priced in dollars on global markets. If Iraq artificially inflated the dinar's value, it would receive fewer dinars for each barrel sold, devastating government revenues that fund everything from salaries to services.
• Imports would flood the market. Foreign goods would become artificially cheap, destroying domestic industries and employment while draining foreign currency reserves.
• Economic chaos would ensue. The sudden shift would obliterate business planning, investment, and trade relationships.

No responsible government would deliberately cause this type of economic catastrophe. The Central Bank of Iraq has repeatedly stated it has no such plans, but speculators dismiss these clear statements as "disinformation" meant to hide the imminent RV.

Sudani's Actual Economic Record

Prime Minister Sudani has focused on practical economic initiatives: infrastructure projects, electricity sector improvements, and efforts to diversify Iraq's oil-dependent economy. These are sensible policies for long-term development.

What he has not done, will not do, and cannot do is suddenly declare the dinar worth exponentially more. Central bank independence, and economic fundamentals, mean currency policy isn't determined by prime ministerial decree, and even if it were, the economic devastation would be immediate and severe.

The Promotion Machine Spins Up

In the wake of the election results, dinar dealers and promoters are already capitalizing on renewed interest:

• YouTube channels are releasing videos hailing Sudani's win as a game-changer
• Conference call "intel providers" are sharing elaborate stories about secret meetings and imminent announcements
• Dealer websites are likely seeing increased traffic as hope surges again
• Forum "gurus" are setting new predicted dates, typically just far enough away to maintain suspense

These promoters profit from selling dinars at massive markups, and from ad revenue, donations, and paid subscriptions to their "insider information." They have financial incentives to keep the dream alive, regardless of reality.

The Pattern Never Changes

Look back at previous Iraqi political milestones that supposedly would trigger the RV:

• Formation of previous governments: No RV
• Iraq's exit from Chapter VII UN sanctions in 2013: No RV
• Infrastructure projects and economic initiatives: No RV
• International agreements and partnerships: No RV

Al-Sudani's electoral victory will join this long list of non-triggers. In a few months, when nothing has happened, speculators will pivot to the next milestone: budget approval, a diplomatic visit, an economic conference, or some other event that will supposedly finally bring the RV.

What This Really Means for Dinar Holders

If you're holding Iraqi dinars hoping for an RV, Sudani's re-election means:

• In the short term: Absolutely nothing. The exchange rate will continue to be determined by Iraq's economic fundamentals, oil prices, and central bank policy-not by who wins elections.
• In the long term: Possibly modest, gradual appreciation if Iraq's economy genuinely improves under stable leadership. This would occur over years or decades, not overnight, and would represent normal currency behavior, not the fantasy RV.
• For your investment: You're still holding an illiquid, exotic currency from a developing economy. Political continuity might be mildly positive for Iraq's long-term prospects, but you've already lost money to dealer markups and opportunity costs.

Moving Beyond the Fantasy

Iraqi politics matter for Iraqis who live with the consequences of governance, economic policy, and development decisions. Elections have real importance for real people.

But for foreign speculators, trying to read secret RV signals into election results is a fool's errand. Al-Sudani's coalition victory is a political event, not a financial catalyst for an impossible currency revaluation.

The dinar RV has always been a speculative fantasy that ignores economic reality. No prime minister, no matter how popular or how committed to reconstruction, can or will create the magical wealth transfer that speculators imagine.

The sooner investors recognize this, the sooner they can make financial decisions based on facts rather than false promises perpetuated by those who profit from keeping the dream alive.

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1 

See also:

Stability of the Iraqi Dinar Exchange Rate: CBI Paper

Dinar RV: Will Iraqi Election Speed the Process?

Dinars to Dollars: Official List of Approved Banks

Top 10 Dinar Articles from October

Iraqis "Hoarding Trillions of Dinars"

The following were the ten most read dinar-related articles on Iraq Business News for the month of October:

1. Stability of the Iraqi Dinar Exchange Rate: CBI Paper
2. The Iraqi Dinar Revaluation Deception: 10 Persistent False Claims Exposed
3. Donald Trump and the "Great Iraqi Dinar Revaluation"
4. Dinar RV: Will Iraqi Election Speed the Process?
5. Iraqi Dinar Prospects: Reality Check After Six Months of Trump
6. Iraq Participates in Annual IMF / World Bank Meetings in DC
7. IMF Upgrades Iraq Forecasts
8. Dinars to Dollars: Official List of Approved Banks
9. What the Future Holds for Dinar Investors
10. Iraqi Central Bank Reduces Supply of Dinars

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1 

By Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Dinar RV: Will Iraqi Election Speed the Process?

For years, speculators in Iraqi dinar have clung to the dream of an imminent "revaluation" or "RV" that would dramatically increase the currency's value overnight, transforming modest investments into massive windfalls. With each Iraqi election cycle, a familiar refrain emerges in dinar speculation communities: Could this political event finally trigger the long-awaited RV?

The RV Fantasy

The concept of a dinar revaluation rests on a fundamental misunderstanding of how currencies and economies work. Proponents believe Iraq will suddenly revalue its currency at rates that would make it one of the world's most valuable -- sometimes claiming it will reach or exceed the value of the US dollar. These expectations are not grounded in economic reality.

Iraq's economy, while resource-rich, faces significant challenges, including:

• Ongoing political instability
• Infrastructure damage from decades of conflict
• Heavy dependence on oil revenues
• High unemployment and inflation
• Corruption and governance issues

A massive currency revaluation would be economically catastrophic for Iraq, making its exports uncompetitive, thus crippling its economy.

Why Elections Don't Trigger Currency Miracles

Dinar speculation communities often point to elections as potential catalysts for revaluation, but this connection is purely imaginary. Elections in Iraq, like elsewhere, are political processes that may lead to policy changes over time, but they don't directly cause currency revaluations.

Central banks adjust currency values based on economic fundamentals, not political calendars. The Central Bank of Iraq (CBI) has repeatedly stated it has no plans for a dramatic revaluation. When currencies do appreciate, it happens gradually through market forces or careful central bank management -- never through the sudden, massive jumps that dinar speculators envision.

The Real Winners

The true beneficiaries of dinar RV speculation are not the hopeful investors, but the dealers and promoters who sell dinars at enormous markups and profit from spreading false hope. These dealers often charge commissions of 20% or more above the actual exchange rate, making money regardless of whether any revaluation occurs.

Many promoters operate through websites, YouTube channels, and conference calls where they perpetually claim the RV is "imminent," citing fabricated insider information, misinterpreted news stories, or completely fictional sources. When predictions fail, they simply move the goalposts and set new dates.

A Pattern of False Promises

The dinar RV community has a long history of failed predictions tied to specific events:

• "It will happen after the new government forms"
• "It will happen when Iraq exits Chapter VII sanctions" (which occurred in 2013 with no RV)
• "It will happen when the budget is published"
• "It will happen after the election"

Each milestone comes and goes without the promised revaluation, yet believers remain convinced the next event will be different.

The Bottom Line

Iraqi elections, like any other political event in Iraq, will not trigger a dinar revaluation. The RV is a speculative fantasy that ignores basic economic principles and preys on people's hopes for quick wealth.

If you're holding Iraqi dinars hoping for an RV:

• Understand that you've likely already lost money through dealer markups
• Recognize that the dinar may appreciate modestly over many years, like any currency, but will not suddenly skyrocket in value
• Be skeptical of anyone claiming insider knowledge or setting specific dates for revaluation
• Consider whether your money might be better invested in legitimate, diversified assets

The Iraqi dinar is an exotic, illiquid currency from a developing nation with significant economic and political challenges. Elections may bring political change, but they won't transform bad investments into good ones through magical currency revaluations that violate economic reality.

The sooner investors recognize the RV for what it is-an unrealistic expectation perpetuated by dealers profiting from hope-the sooner they can make informed financial decisions based on reality rather than fantasy.

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1 

See also:

Iraqi Central Bank Reduces Supply of Dinars

Trump & Crypto: Will Bitcoin's Success Translate to the Iraqi Dinar?

Top 10 Dinar Articles from September

"Tired of Dinars", Iraq flocks to Dogecoin

The following were the ten most read dinar-related articles on Iraq Business News for the month of September:

1. The Iraqi Dinar Revaluation Deception: 10 Persistent False Claims Exposed
2. What the Future Holds for Dinar Investors
3. Iraqi Dinar Prospects: Reality Check After Six Months of Trump
4. Donald Trump and the "Great Iraqi Dinar Revaluation"
5. Iraq "Capable of Defending Exchange Rate" - Central Bank
6. CBI launches Inter-Wallet Money Transfers
7. Iraqi Central Bank Reduces Supply of Dinars
8. The Iraqi Dinar Revaluation Scam: False Hope, Financial Deception
9. Iraqi Dinar Q&A: Dinar Revaluation (RV) and Israeli Airstrikes on Iran
10. Dinars to Dollars: Official List of Approved Banks

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1