🇮🇶📢 IRAQ’S DELETE THE ZEROS PROJECT: PART OF A BROADER MONETARY REFORM STRATEGY? 💵🏦
After reviewing the latest statements from Iraq’s financial officials, several important points stand out regarding the Delete the Zeros Project, monetary stability, and the future direction of Iraq’s financial system.
📰 LATEST NEWS SUMMARY
Iraq’s Prime Minister’s financial advisor, Mazhar Mohammed Salih, clarified that:
❌ There is currently NO official decision to remove zeros from the Iraqi dinar.
However, he also made something very important clear:
✅ The Delete the Zeros Project has not been canceled.
According to his statement, removing zeros is part of a:
🇮🇶 “Comprehensive Monetary Reform”
This means the project is not being viewed as an isolated currency change, but rather as one component of a larger transformation of Iraq’s monetary and financial system.
💡 WHAT DOES THIS MEAN?
For years, many discussions focused only on:
💵 Removing zeros from the currency.
💵 Changing denominations.
💵 Simplifying transactions.
But this statement places the Delete the Zeros Project inside a much bigger framework.
A comprehensive monetary reform can include:
🏦 Strengthening the banking system.
📲 Expanding electronic payments.
💰 Improving liquidity management.
📊 Controlling money circulation.
📉 Reducing excess cash outside the banking system.
💵 Modernizing the currency structure.
The removal of zeros would be one piece of this larger plan.
📌 IMPORTANT CLARIFICATION ABOUT REMOVING ZEROS
Mazhar Mohammed Salih explained that removing zeros:
❌ Does not automatically increase the real value of the dinar.
❌ Does not automatically increase citizens’ purchasing power.
Instead, it is a technical and organizational reform designed to:
✅ Simplify accounting.
✅ Make monetary transactions easier.
✅ Improve the efficiency of the financial system.
The true strength of the currency depends on:
📈 Economic performance.
🏭 Production.
🏦 Financial stability.
🌍 Confidence in the economy.
💰 IRAQ IS NOT REPORTING A FINANCIAL CRISIS
Another major point from the latest reports:
Iraq is not describing the current situation as a structural financial crisis.
Officials explain that:
🟢 Salaries and government obligations can still be met.
🟢 Foreign currency and gold reserves remain important supports.
🟢 Current pressures are related mainly to liquidity management and cash circulation.
The issue is not simply “lack of money,” but rather how efficiently money moves through the banking system.
🏦 THE ISSUE OF SMALL DENOMINATIONS
The shortage of smaller banknotes was also addressed.
According to the explanation:
💵 Small denominations deteriorate quickly because of heavy daily use.
The problem is not necessarily a shortage of currency issuance, but:
➡️ The lifespan of paper notes.
➡️ The high level of cash usage.
➡️ The need for better circulation management.
Iraq is also working toward increasing electronic payments, which can reduce pressure on physical cash.
🔍 MY ANALYSIS
The most significant point I see in this announcement is the wording:
“Delete the Zeros is part of a comprehensive monetary reform.”
This places the project into a larger economic roadmap.
It suggests that Iraq is not simply looking to change the appearance of its currency, but to modernize the entire monetary environment around it.
The message appears to be:
🇮🇶 First create stability.
🏦 Prepare the financial system.
📊 Improve monetary management.
💵 Then move forward with major currency reform.
👀 ADDITIONAL INFORMATION BEING DISCUSSED
There has also been discussion from sources described as having CBI connections suggesting that:
📌 The Delete the Zeros Project remains a long-term objective.
📌 The focus is on completing necessary economic, political, and security conditions before implementation.
📌 Some discussions have pointed toward important security milestones around September 30, 2026, and a possible reform window around January 2027.
⚠️ These dates have not been officially confirmed by the Central Bank of Iraq or the Iraqi government, but they are being followed closely by those monitoring Iraq’s reform process.
🇮🇶 FINAL THOUGHTS
After reviewing all of this information, the picture becomes clearer:
✔️ The Delete the Zeros Project still exists.
✔️ It is being described as part of a broader monetary reform strategy.
✔️ Iraq is emphasizing stability before implementation.
✔️ The focus is not only on currency, but on rebuilding and modernizing the entire financial system.
The next phase for Iraq appears to depend on achieving the right combination of:
🏦 Banking readiness.
📊 Economic stability.
🛡️ Political and security progress.
💵 Monetary discipline.
The project is not being presented as a quick event—it is being framed as a major step within Iraq’s long-term financial transformation.
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MONETARY STABILITY MAP: AL-ZAYDI’S ADVISOR REVEALS THE TRUTH ABOUT REMOVING ZEROS AND THE REASONS FOR THE SCARCITY OF SMALL DENOMINATIONS
The financial advisor to the Prime Minister put an end to the growing debate in Iraq, asserting that talk of removing zeros from the currency or the existence of a cash crisis is merely baseless rumor. While attributing the scarcity of small denominations to their rapid deterioration due to frequent circulation, he emphasized that the problem lies not in printing new currency, but rather in the way liquidity is managed and circulated within banks.
Zero Removal Project
The Prime Minister’s financial advisor, Mazhar Muhammad Saleh, told Al-Alam Al-Jadeed on Wednesday (July 29, 2026) that “Iraq does not currently have any official indications or decisions regarding removing zeros from the Iraqi currency,” explaining that “this measure is part of a comprehensive monetary reform, and it cannot proceed except after creating a stable economic and financial environment and fulfilling the necessary technical and institutional requirements.”
He adds that “removing zeros, if implemented in the future, is a regulatory measure aimed at simplifying monetary transactions and accounting systems, and does not in itself result in an increase in the real value of the dinar or an improvement in the purchasing power of the citizen, because purchasing power remains linked to economic performance, production and financial stability.”
small denominations
Saleh explains the scarcity of small denominations of currency by their paper nature and high rate of circulation, which leads to their being damaged within a short period of time. He clarifies that this phenomenon is not related to a shortage in issuance, but rather to the characteristics of their daily use.
He points out that Iraq, unlike many countries that rely on coins for small denominations, still uses paper denominations, noting that the lifespan of these denominations does not exceed about one year according to international standards, due to the intensity of their use and their continuous transfer between hands, at a time when reliance on paper money remains high while electronic payment methods continue to grow.
The issue of small denominations of currency has resurfaced after increasing questions about the reasons for their scarcity in Iraqi markets, amid ongoing debate about cash liquidity management and mechanisms to meet daily trading needs.
Printing a new currency
Saleh believes that “it cannot be said that Iraq is suffering from a shortage of money supply in the sense that necessitates printing new currency, as the Central Bank has the ability to provide cash in accordance with the needs of the economy, and the size of the currency issuance is linked to specific technical and economic factors.”
He continues, “The most prominent challenge is managing and distributing liquidity efficiently within the banking sector, in addition to encouraging banking and electronic transactions to reduce hoarding outside the banking system and improve the efficiency of cash circulation.”
Saleh emphasizes that “issuing a new edition of currency is not just a technical decision, but rather an integrated process that requires a careful study of monetary needs, costs, and the characteristics of the new currency, as well as coordination between the Central Bank and relevant government agencies.”
The Prime Minister’s financial advisor points out that “no official announcement has yet been issued regarding the adoption of a new currency issue, which means that any steps in this direction remain subject to the monetary authority’s assessments and market needs, and are not related to the existence of a currency crisis. What is being raised in this regard is based on statements issued by non-specialized sources.”
Official assurances
Amid growing talk of liquidity pressures and delays in releasing some salaries, governmental and parliamentary assurances emerged that the current crisis is temporary and does not represent a structural flaw in the economy, coinciding with moves to address financial obligations, complete the preparation of the draft general budget, and initiate legislative reforms related to public finance management.
The parliamentary finance committee affirmed that the government possesses the necessary tools and capabilities to overcome the current stage, noting that the financial pressures came as a result of regional economic repercussions and a decline in oil exports, but they do not amount to a structural crisis, and that the government measures aim to contain the immediate challenges while continuing to implement the economic reform path, and ensuring the continuation of government obligations, foremost among them the salaries of employees and social entitlements.
Regarding the issue of salaries, the Finance Committee reassured employees about their entitlements, explaining that any delay in releasing salaries is due to an emergency and temporary shortage of financial liquidity, and that the concerned authorities are working to address it within a short period.
Jamal Kojar, a member of the parliamentary finance committee, said in a press statement followed by “Al-Alam Al-Jadeed” that the government places the issue of salaries among its priorities, expecting the disbursement procedures to be completed before the end of the week, and pointing out the readiness of the Ministry of Finance to work during Friday and Saturday to complete the necessary administrative orders and expedite the arrival of entitlements and prevent any further delays.
2026 Budget Project
In parallel, the Finance Committee revealed that the government intends to send the draft general budget law to the House of Representatives during the month of October, with the parliament to begin discussing it as soon as it arrives, with the aim of approving it before the end of the year. This step aims to provide a more flexible financial framework to deal with fluctuations in oil prices, given the continued heavy reliance of the Iraqi economy on oil revenues to finance public spending and government projects.
Between temporary liquidity pressures, preparations for budget approval, and the move towards new legislative reforms, the next stage appears to be a test of the ability of financial institutions to turn promises into practical measures, since the success of resource management will not be measured only by the speed of salary disbursement, but also by the extent to which the state is able to build a more stable financial system that is less affected by fluctuations in oil revenues.
