For those who have followed the RV saga from the beginning, one issue has quietly grown into a national crisis inside Iraq:
👉 massive stashes of physical cash stored in citizens’ homes.
While the Iraqi government has largely avoided addressing this issue publicly, the Central Bank of Iraq (CBI) has raised the alarm multiple times. Today, yet another article confirms the severity of the situation — and why it matters more than ever.
The Torn Currency Crisis: A Symptom of a Deeper Problem
An Iraqi article titled:
“THE TORN CURRENCY: BETWEEN THE FAILURE OF PAPER CIRCULATION AND THE DELAY OF DIGITAL TRANSFORMATION”
reveals that damaged paper notes are not just an inconvenience — they are evidence of a systemic cash-management failure.
Key Quote from the Article
“The torn currency reveals a deeper flaw… a cash management crisis, a delay in automation, and a weakness in replacement mechanisms, which makes the citizen the weakest link.”
The burden falls on everyday Iraqis, caught between:
Banks that refuse damaged notes
Markets that penalize them
Digital systems that are not yet fully operational
A Human Story from Baghdad
One passage captures the emotional toll vividly:
A government employee clutches a tattered 5,000-dinar note, taped together, rejected everywhere she goes.
“No one will take it from me,” she whispers in despair.
Small denominations — 250, 500, 1,000, and 5,000 dinars — have become both a financial and psychological burden.
Why Hasn’t the CBI Printed New Notes?
This is the critical question — and MNT GOAT went straight to a CBI contact in Baghdad for answers.
CBI’s Strategy Explained
The CBI does NOT want to increase paper currency
The goal is to reduce the monetary mass by two-thirds
Focus is on:
Digital banking
Electronic payments
Future polymer (plastic) lower-denomination notes
100, 250, and 1,000 dinar notes will remain, but in a controlled system
This is intentional pressure — not neglect.
Digital Project + Removing the Zeros: Originally Targeted for December 1
According to the CBI contact:
The digital rollout and zero removal were originally targeted for December 1
Delays occurred due to:
The digital platform not being technically ready
Election complications and Iranian influence within government
New Internal Target
🗓 December 29 — if these issues are resolved.
Why December 29 Keeps Appearing Everywhere
Shortly after this conversation, a flood of confirming news appeared:
Key Political Developments
US demands armed groups not be included in the new Iraqi government
Federal Court ratified election results on December 14
Constitutional deadlines for forming government officially began
Parliament session on December 29:
Must elect the Speaker
Cannot be postponed or extended
Triggers appointment of the Prime Minister
Once parliament is operational, everything accelerates.
US Pressure and Iranian Influence: A Decisive Moment
The United States has made its position clear:
No political wings of armed groups in government
No second term hijacked by Iranian militias
Strong support for Prime Minister Al-Sudani, who won majority support
This geopolitical pressure aligns directly with CBI reform timing.
The Shocker: Militias Voluntarily Move Toward Disarmament
Just when optimism seemed fragile, this article dropped:
“SAVAYA IS PLEASED WITH THE FACTIONS’ MOVEMENTS AND STIPULATES A COMPLETE AND IRREVERSIBLE DISARMAMENT.”
🔥 This was the shocker.
For the first time:
Armed groups welcomed disarmament
Statements aligned with calls from religious authorities
The choice appeared voluntary, not forced
This is exactly what Iraq needed.
Savaya’s Warning: Statements Are Not Enough
US envoy Mark Savaya made the position unmistakably clear:
Disarmament must be:
Comprehensive
Irreversible
Legally binding
No armed formations outside state authority
Full monopoly of force must belong to the Iraqi state
Armed group members must transition legally into civilian life
Iraq now stands at a crossroads:
🟢 Sovereignty and stability
🔴 Disintegration and uncontrolled weapons
All signs indicate Iraq has chosen the high road.
Featured Snippets
🔹 Why is torn currency a crisis in Iraq?
It reflects cash hoarding, weak circulation, delayed digital banking, and stresses the need for monetary reform.
🔹 Why won’t the CBI print more money?
The CBI aims to reduce monetary mass and shift to digital systems, not expand paper currency.
🔹 Why does disarmament matter for the RV?
State control of weapons is essential for sovereignty, financial reform, and international confidence.
Q&A: MNT GOAT Iraq Update Explained
Q: Is the torn currency problem intentional pressure?
A: Yes. It encourages digital adoption and prepares for monetary restructuring.
Q: Is December 29 important?
A: Extremely. Parliament formation, leadership appointments, and CBI targets converge on this date.
Q: Why is militia disarmament critical now?
A: It removes the final sovereignty obstacle before full economic and monetary normalization.
Q: Is the RV guaranteed on December 29?
A: No date is guaranteed — but pressure, alignment, and momentum are undeniable.
Final Analysis
This is no longer about isolated events.
The torn currency crisis, digital transition, election deadlines, US pressure, and voluntary militia disarmamentare interlocking gears.
📈 When all gears align, motion becomes inevitable.
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MNT GOAT
If you have been following this RV saga all along, you know that the stashes of currency in the homes of the citizens is at a crisis level. The govt doesn’t want to do much about this concern but the CBI has mentioned it many times already. So, in today’s news we get yet another article on this topic titled “THE TORN CURRENCY: BETWEEN THE FAILURE OF PAPER CIRCULATION AND THE DELAY OF DIGITAL TRANSFORMATION”. I quote from the article –
“The torn currency reveals a deeper flaw than the tearing of the paper, as it shows a cash management crisis, a delay in automation, and a weakness in replacement mechanisms, which makes the citizen the weakest link between banks that refuse, a market that punishes, and digital solutions that are not yet complete.”
“No one will take it from me,” Zainab al-Khafaji, a government employee, whispered to herself, her voice thick with despair, as she strolled through the shops of Baghdad’s upscale Mansour district. She clutched a five-thousand-dinar note that looked as if it had been through a war; it was tattered, its edges torn, and held together with a makeshift piece of tape.”
As worn-out paper currency, especially the small denominations (250, 500, 1000, 5000 dinars), has become a financial and psychological burden, a crisis. So, let’s go deeper into this issue. Why hasn’t the CBI issued newer notes to replace them? Why not spend the money and order newer notes? This is a question I have asked my CBI contact in Baghdad. Here is what she told me:
She told me the CBI has plans to limit the paper currency at this time, implement the digital project and does not want to issue any more in circulation. There are newer, plastic notes, with more security features coming out as part of the lower denominations. She said to remember that the 100, 250 and 1000 notes are going to stay in circulation in the public. The goal is to bring the monetary mass down by 2/3. She them told me the digital project was targeted along with the roll out of removing the zeros for December 1st but delays occurred. These delays were mostly accountable because of two reasons: 1. the digital platform was not yet technically ready and 2. there was a matter of the elections and Iranian influences in the government that had to be resolved.
I then asked for a new target and my contact told me there is a target of December 29th if these two reasons for delay can be resolved. Soon after I ended my call to Iraq out popped news in this article “OFFICIALS: AMERICA DEMANDS THAT ARMED GROUPS NOT BE INCLUDED IN THE NEW IRAQI GOVERNMENT”. This news was nothing new but the timing….just saying….More than a month has passed since the elections for the sixth session of the Iraqi Council of Representatives, and the Shiite, Sunni and Kurdish leaders are still in the midst of negotiations to form the new government, without the features of this government yet appearing. Everyone was waiting for the results to be ratified by the Iraqi Federal Court, which ratified them last Sunday, December 14, 2025, after which the constitutional deadlines for forming the government would begin. Although these deadlines were not adhered to in some previous sessions and the formation took longer than specified by the constitution, American pressure is now emerging on Iraq to prevent the inclusion of the political wings of armed groups in the government.
What does America want? Given its ongoing role and influence in Iraq for over two decades, the United States expects the new Iraqi government to be free of armed groups
So, also out popped yet another article titled “ZIDANE: THE PARLIAMENTARY SESSION ON DECEMBER 29TH WILL DECIDE ON THE PRESIDENCY OF THE COUNCIL AND CANNOT BE EXTENDED.” – “The head of the Supreme Judicial Council, Faiq Zaidan, confirmed that the session of the new House of Representatives scheduled for December 29 must end with the appointment of the Speaker of the Council and his two deputies, noting that it is not constitutionally or legally possible to postpone or extend it.” If you recall the procedures for Iraq to form the next government, once the new speaker is appointed he then announces the new prime minister and so this all should happen very quickly once parliament is formed and operatable. Of course the U.S. will also have its hand in selecting the new prime minister as al-Sudani did get the majority of the citizens’ votes. The U.S. will not let some Iranian influence take a second term away from Al-Sudani.
So, I am reading all this news about the election and the Iranian militias feeling kind of low that the CBI target might get pushed even beyond December 29thwhen out pops this article titled “SAVAYA IS PLEASED WITH THE FACTIONS’ MOVEMENTS AND STIPULATES A COMPLETE AND IRREVERSIBLE DISARMAMENT.” In the title is also reiterates that “Statements alone are not enough.” We all know Iraq is good at making promises and then not carrying them out. Yeh….didn’t we read more than 6 months ago an article about disarming the militias in Iraq. So what happened to that? Why is the government still even faced with this challenge today, so close to the elections and the RV?
Here is the shocker article for today – Upon Mark Savaya, US President Donald Trump’s envoy to Iraq, visit this week the Iraq militia groups welcomed the move to disarm and positive statements were made by some Iraqi armed groups toward disarmament, considering it an encouraging development that responds to calls from religious authorities. WOW! This is exactly what we wanted to hear. We needed Iraq to make the choice of disarmament and not to force it.
However, Savaya stressed that statements alone are not enough, calling for a comprehensive and irreversible disarmament process implemented within a binding national framework that enshrines the state’s monopoly on the use of force.
Savaya also warned that Iraq stands at a critical crossroads between consolidating sovereignty and stability, or remaining trapped in a cycle of disintegration and uncontrolled weapons. It appears to me that Iraq has chosen the high road and will comply with the U.S. mandate for disarmament. These reported steps taken by some Iraqi armed groups toward disarmament are a welcome and encouraging development. This represents a positive response to the persistent calls and aspirations of our religious authorities and esteemed scholars and leaders.
Savaya then expressed his deepest appreciation and gratitude for their wisdom, moral leadership, and principled guidance, which continues to serve as a guiding compass for the nation. BUT…..at the same time, statements alone are not enough. Disarmament must be comprehensive, irreversible, and implemented within a clear and binding national framework. This process must also include the complete dismantling of all armed groups and ensure an orderly and legal transition of their members to civilian life.
Savaya also reminded Iraqi officials that according to the Iraqi Constitution and the rule of law, no political party, organization, or individual has the right to possess or operate armed formations outside the authority of the state. This principle applies throughout Iraq without exception. The exclusive authority to bear arms and use force must remain solely with the legitimate federal and regional institutions entrusted with organizing, commanding, and managing the armed forces to protect the Iraqi people and defend the country’s sovereignty.
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