MNT GOAT: NOW IN CRISIS MODE: Are the Smaller Denominations Finally Coming?
NOW IN CRISIS MODE: What Is the CBI Waiting For?
A critical question must now be asked:
What exactly is the Central Bank of Iraq (CBI) waiting for?
This is no longer speculation. The evidence has been building steadily for months, and the situation has now escalated into a public cash crisis.
Let’s connect the dots.
Citizens Don’t Trust Banks… But That’s Not the Whole Story
In the November 4th Newsletter, an article titled “FINANCIAL EXPERT: PEOPLE DO NOT TRUST BANKS AND ARE STORING THEIR MONEY AT HOME” highlighted a growing problem: massive amounts of cash being stashed inside citizens’ homes.
At the time, mistrust in banks was cited as the primary reason.
But today, we know that explanation is only part of the truth.
The December 1st Currency Mechanism That Never Launched
November 20th Newsletter, which referenced the article: “IRAQ IS SET TO IMPLEMENT A NEW CURRENCY MECHANISM ON DECEMBER 1, 2025.”
That mechanism was not implemented.
Why?
National elections
Security instability
Ongoing issues with Iranian-backed militias
Financial systems not fully aligned
Once this mechanism is activated, there is no turning back.
According to a direct CBI contact, this implementation has now been moved to January 1, 2026 — a logical delay given the magnitude of the change.
The Cash Problem: Officially Acknowledged by the CBI
In the December 2nd Newsletter, another critical article appeared: “THE CENTRAL BANK WANTS TO SOLVE THE CASH PROBLEM.”
Key admissions by the CBI:
Certain denominations are not accepted by banks
Notes under 10,000 IQD are frequently rejected
250, 500, and 1,000 dinar notes are least traded
Damaged and worn bills are accumulating among citizens
Approximately 15 trillion dinars are withheld in homes
Banks and dealers were instructed to:
Accept all denominations
Accept torn or damaged bills
Stop discounting damaged notes
Yet… the problem persists.
Today’s Reality: This Is Now a Public Crisis
A recent article confirms escalation: “THE WORN-OUT CURRENCY IS A PROBLEM THAT IS WORSENING WITHOUT SOLUTIONS.”
Citizens are openly complaining.
“No one will take it from me,” said Zainab al-Khafaji, holding a torn 5,000 dinar note. “I don’t know who gave it to me… everyone refused it.”
This is no longer isolated.
This is systemic failure.
Why This Matters: 80% of Cash Is Out of Circulation
Estimates suggest that nearly 80% of Iraq’s physical currency is sitting:
In homes
In drawers
In bags
Completely outside the banking system
This has consequences:
Banks lack liquidity for loans
Cash flow stalls
Inflation appears artificially low
Commerce slows at street level
In short: 👉 Money exists, but it’s frozen.
Why Citizens Are Hoarding Cash (The Real Reason)
It’s not just mistrust.
It’s because:
Notes are damaged
Merchants refuse them
Banks historically rejected them
Citizens have nowhere to exchange them
So they do the only thing left: stash it at home.
The Only Viable Solution: What Must Happen Next
The evidence points to urgent, unavoidable action.
The CBI has only a few viable options — and they must happen very soon:
1️⃣ Implement the Project to Delete the Zeros
Introduce modernized, durable notes
Restore confidence in physical currency
2️⃣ Retrieve the Hoarded Cash
Pull damaged three-zero notes back into banks
Absorb trillions sitting idle in homes
3️⃣ Roll Out Smaller Denominations
Enable daily transactions
Support post-revaluation pricing
Fix the change problem at street level
4️⃣ Launch the Digital Dinar
Introduced alongside, not instead of, cash
Gradual transition
Cash remains for years
The Inflation Balancing Act
According to CBI contacts, this process requires extreme precision.
When large three-zero notes are withdrawn:
Monetary mass must be reduced
Target balance: ~1/3 of current supply
Inflation must remain low
This is not improvisation. This plan is fully designed and awaiting execution.
More Proof from the Streets
Another citizen complaint from the same article:
“I suffer from this problem every day,” said Omar Sami, a vegetable seller. “Customers get angry when I refuse worn currency… ‘What am I supposed to do with it?’”
This is what currency dysfunction looks like.
Featured Snippet: Why Are Smaller Denominations Critical?
Why does Iraq need smaller denominations now? Because worn-out large notes are being rejected, cash is hoarded at home, daily commerce is disrupted, and only a currency reform with modern lower denominations can restore circulation and confidence.
Why the CBI Cannot Delay Much Longer
The CBI has stated it will not issue replacement notes under the current system.
That makes one thing clear:
👉 The currency swap-out is no longer optional. 👉 The urgency is real. 👉 This situation cannot persist into 2026 without consequences.
This feels less like preparation… and more like imminence.
Q&A Section
Is this cash problem real or exaggerated?
It is real, widespread, and now publicly acknowledged.
Are smaller denominations required before an RV?
Yes. Daily commerce cannot function post-RV without them.
Is this tied to the digital dinar?
Yes. Both are designed to roll out together.
Does this mean the RV is close?
It means the mechanics required for an RV are being forced into action.
Final Question for Readers
Having read the current RV Status, the cash crisis, and the CBI’s limited options…
NOW IN CRISIS MODE: ARE THE SMALLER DENOMINATIONS COMING?
What is the CBI waiting for?
Do you remember the article in my 11/4 Newsletter? It was titled “FINANCIAL EXPERT: PEOPLE DO NOT TRUST BANKS AND ARE STORING THEIR MONEY AT HOME.” We must tie in these articles to other articles from the recent past on this subject matter of stashed of currency in the homes. But is the ‘mistrust’ in the banking system the real cause of these stashes now at this time, or just part of issue? Let’s explore this today.
Then let’s tie this article to the article in my 11/20 Newsletter titled “IRAQ IS SET TO IMPLEMENT A NEW CURRENCY MECHANISM ON DECEMBER 1, 2025” . Do you remember it? Let’s take another look at now that we know much more since. But it did not get implemented on Dec 1st and so why? Could it be the elections and the issue with the Iranian militias? Remember once they implement this new currency mechanism there is no turning back. Everything must be in place for the financial entities to support it. My CBI contact has told me yesterday this date is now moved out until January 1, 2026. We should all understand why.
Here is the article again:
Also in my 12/2 Newsletter remember this article titled “THE CENTRAL BANK WANTS TO SOLVE THE CASH PROBLEM”? Central Bank of Iraq told us some types of currency, even less than 10,000 dinars, are not accepted from some banks, so the currency has accumulated among citizens. To solve this problem in the Central bank issued guidelines to private banks and currency dealers. The Central Bank of Iraq (CBI) has issued new guidelines and these institutions must deal with all types of Iraqi dinars, even worn out or damaged ones. Also the 250, 500 and 1000 Iraqi dinars are the least traded in the market, banks and currency dealers’ markets, and in some places are not accepted, so the small amount of money has accumulated among citizens. Today we also learn another reason why these notes are accumulating in their homes. It is because they are damaged and no one wants take the damaged notes.
The Central Bank of Iraq (CBI) had earlier said it had a shortage of cash, one of the reasons being the deterioration of the balance between the currencies, so they issued new guidelines and must deal with all types of Iraqi dinars. We were told about 15 trillion dinars are withheld by citizens. Economist Haider Sheikh said the central bank wants to solve the cash problem and eliminate the excuse of currency in transactions, so government offices and private banks have instructed to receive all kinds of money, because the money paid for salaries will not be in the market.
Previously, currency dealers and even some private banks accepted bills against the dollar at less than their value, but according to the new guidelines, bills will be accepted at the same value even if they are torn or old.
Okay, let’s keep going on this topic and tie in some more recent articles from the news this period of news.
In the following most recent article in today’s news, it becomes apparent that something is going to happen shortly to fix this issue or there is going to be more serious implications. Yes, it is now a crisis for the public. It is titled “THE WORN-OUT CURRENCY IS A PROBLEM THAT IS WORSENING WITHOUT SOLUTIONS.” We have read many articles about the stashes of cash in citizens homes and how this cash is needed in the banks for loans. This cash is nearly 80% of the currency mass in circulation. This could also be why Iraq is holding steady on inflation being so low, this cash is basically withdrawn from circulation. In this article we hear of complaints about the situation and I quote from it –
“No one will take it from me,” Zainab al-Khafaji (an employee) kept repeating as she wandered among the shops near Sayed al-Halib in the Mansour district, before we asked her: “What is it that no one will take from you?” She replied: “Five thousand dinars torn up and glued back together.” She added: “I don’t know who gave it to me when I was shopping, and I tried to buy something with it again, but everyone refused it.”
Do you see that this is a crisis situation now? Why else would there be so many articles on this subject matter in the few months if not a crisis? Did you read just a few of the complaints?
Okay, so if no one will take these worn-out notes then what do the citizens do with them? They stash them at home and soon they pile up, as they have done. It is obvious that newer modernized polymer notes are in order and will not wear out so much. But is this the direction the CBI is really going in the first place? Is the goal not to go digital? But remember too that the CBI told us that cash is not going completely away for many years after this move to digital. Oh…. but there are solutions! The citizens must feel comfortable in any change and this must be handled carefully. I see a few things that are going to happen in the VERY near future and have to happen VERY SOON:
Suck in these damaged notes stashes from the homes back into the banks.
Implement the digital dinar, said to occur at the same time as the newer lower denomination roll outs.
In doing these monetary operations my CBI contact told me there must be a balance necessary to keep inflation low. In other words, I was told that when they suck in the larger three zero notes, especially the damaged ones, they must balance them out so as to keep the monetary mass as 1/3 of what it is today. This is going to be tricky and will take much planning. This is however all planned out and just waiting for execution of the plan.
Here is yet another complaint from the article and I quote –
“Omar Sami (a vegetable seller) says: “I suffer from this problem every day, whether when taking money from customers or returning the change to them.He added that many shoppers get angry when he refuses to take or return worn currency, and the most common phrase is: “What am I going to do with it?” or “It’s not working, exchange it.”
These worn-out notes are becoming a crisis because the CBI has told us they are not going to issue newer notes and we all know why. This makes the urgency of the currency swap out imperative that it happen VERY SOON. I can even imminent.
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Having read my RV Status for this period when do you think the RV will happen?
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Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
