#Iraq will integrate the #Sinjar Protection Units (YBS) into state security institutions, ending their separate military status, transferring responsibility for security in Sinjar disctrict to federal authorities
Read more: https://shafaq.com/en/Security/Ir
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馃嚠馃嚩馃洝️ IRAQ MOVES TO BRING SINJAR FORCES UNDER STATE CONTROL
馃敼 1. SECURITY INTEGRATION: Iraq plans to integrate the Sinjar Protection Units (YBS) into official state security institutions, ending their separate military status.
馃彌️ 2. FEDERAL AUTHORITY: Baghdad aims to assume responsibility for security in Sinjar, strengthening the government's control over armed groups.
馃實 3. REGIONAL STABILITY: The move could help reduce tensions with Turkey over YBS's reported links to the PKK, although further progress is needed.
馃 4. YAZIDI PROTECTION: Effective implementation could support security, reconstruction, and the safe return of displaced Yazidi families.
馃敨 5. BROADER DISARMAMENT: The integration reflects Iraq's wider effort to bring weapons under state authority, though implementation remains the key challenge.
馃搳 WHY IT MATTERS: Greater security coordination could support political stability, investment, trade, and infrastructure development.
⚠️ IMPORTANT: This is a security and political development—not confirmation of an Iraqi dinar revaluation or exchange-rate change.
馃幆 KEY WATCH: Monitor the actual integration of YBS fighters, Baghdad's control over Sinjar, and progress toward regional stability.
馃嚠馃嚩馃敘 IRAQ'S DELETE-ZEROS PROJECT: WHAT MUST HAPPEN BEFORE THE DINAR REDENOMINATION CAN BECOME REALITY?
馃摪 1. THE LATEST OFFICIAL CLARIFICATION
On October 19, 2026, the National Iraqi News Agency (NINA) reported that the Central Bank of Iraq (CBI) clarified that removing zeros from the dinar is not a decision the bank can implement on its own.
CBI Media Director Haider Ghazi explained that the project requires a specific legal framework because it would affect debts, financial obligations, legal penalties, and other amounts established under existing Iraqi laws.
If approved, the reform would also require a comprehensive public-awareness campaign to explain the conversion and protect citizens' financial rights.
The proposal involves redenominating the Iraqi dinar by changing its nominal scale.
For example, under a hypothetical 1,000-to-1 conversion:
馃挼 1,000,000 old dinars would become 1,000 new dinars.
馃彟 1 trillion old dinars would become 1 billion new dinars.
The numerical amounts would change, but the conversion itself would not automatically increase purchasing power or change the dinar's exchange rate against the U.S. dollar.
⚠️ This is a redenomination concept, not confirmation that Iraq has approved the conversion ratio or a launch date.
馃彌️ 3. THE LEGAL AND LEGISLATIVE STEPS IRAQ STILL NEEDS
STEP 1 — FORMAL GOVERNMENT APPROVAL
The relevant government institutions must agree on the proposal, its objectives, and its economic and operational implications.
The CBI, Council of Ministers, Ministry of Finance, Ministry of Planning, and parliamentary committees need a coordinated framework.
STEP 2 — PREPARE THE DRAFT LAW
A formal legislative proposal must define the conversion ratio, treatment of existing banknotes, implementation timetable, and protection of financial rights.
The proposal must also explain how existing contracts, debts, salaries, pensions, taxes, fees, and legal penalties will be converted.
STEP 3 — PARLIAMENTARY REVIEW
The draft must proceed through the required parliamentary procedures, including committee review, consideration by the Council of Representatives, the necessary readings, and a final vote.
The parliamentary process must establish a clear legal basis for redenomination.
STEP 4 — AMEND CONFLICTING LAWS AND REGULATIONS
Existing civil, commercial, financial, and criminal provisions containing dinar amounts may require amendments or coordinated legal adjustments.
The government must ensure that creditors, debtors, employees, pensioners, businesses, and public institutions are treated consistently.
STEP 5 — CBI IMPLEMENTATION PLAN
Once the necessary legal approvals are in place, the CBI must establish the technical and operational framework, including banknote specifications, printing and distribution arrangements, banking-system updates, and accounting conversions.
The CBI has previously rejected reports claiming that redenominated banknotes had already been printed for circulation.
STEP 6 — PUBLIC ANNOUNCEMENT AND TRANSITION PERIOD
Authorities must officially announce the conversion rules and provide a clear transition timetable.
Banks, businesses, government agencies, and citizens would need instructions for exchanging old notes, handling deposits and contracts, and using old and new currency during any authorized transition.
馃搶 These steps describe the process Iraq would need to complete. They do not mean that each stage has already been approved or completed.
⏳ 4. WHAT IS THE BIGGEST OBSTACLE RIGHT NOW?
The central issue is not simply printing new banknotes. It is establishing the legal authority and coordinated implementation framework required to change the monetary unit.
Earlier reporting by The National in August indicated that the proposal had not yet reached Parliament as a formal bill. The Finance Committee also recommended postponing legislative action until the economic, legal, and financial implications could be examined.
馃挶 5. HOW DOES THIS RELATE TO A POSSIBLE DINAR REVALUATION?
The two issues must be kept separate.
A redenomination changes the numerical scale of the currency. A revaluation or exchange-rate appreciation changes the dinar's value relative to another currency.
For example, converting 1,000 old dinars into 1 new dinar would not, by itself, make the new dinar more valuable in real purchasing-power terms.
The reform could simplify accounting and cash transactions, but its broader economic benefits would depend on banking confidence, fiscal stability, inflation control, and effective monetary policy.
馃幆 6. WHAT SHOULD DINAR WATCHERS MONITOR NEXT?
✅ An official government announcement confirming the proposal's status.
✅ Publication of a formal draft law.
✅ Confirmation that the draft has been submitted to Parliament.
✅ Parliamentary committee review and a documented legislative timetable.
✅ Final legislative approval and the required legal adjustments.
✅ A formal CBI implementation plan specifying the conversion ratio, banknote exchange procedures, and transition period.
⚠️ BOTTOM LINE: Iraq's delete-zeros project remains a proposal requiring legal and legislative action. The October 19 CBI clarification reinforces that the bank cannot implement the project independently.
The next major milestone would be a formally approved legal framework and a documented parliamentary process—not rumors about printing new banknotes or predictions of an imminent exchange-rate change.
馃嚠馃嚩 Follow official CBI announcements and verified Iraqi news sources for confirmation of each milestone.
This post summarizes reported developments and explains the required process. It does not constitute confirmation that redenomination has been approved or that a dinar revaluation is imminent.
馃嚠馃嚩 IRAQ'S MONETARY REFORM UPDATE: EXCHANGE RATE, BANKING, DIGITAL PAYMENTS & THE DINAR'S FUTURE
馃搮 STATUS REPORT — OCTOBER 25, 2026
Iraq is pursuing a broad transformation of its monetary and banking system. The main objectives include stabilizing the dinar, improving access to foreign currency, modernizing the banking sector, expanding electronic payments, strengthening financial compliance, and integrating Iraq more deeply into the international financial system.
⚠️ IMPORTANT DISTINCTION: Monetary reform does not automatically mean a revaluation of the Iraqi dinar. Banking modernization, exchange-rate adjustments, digital currency development, and the removal of three zeros are separate issues that must be evaluated individually.
馃挶 1. OFFICIAL EXCHANGE-RATE POLICY
STATUS: Official exchange-rate adjustment implemented
On October 7, 2026, Iraq adjusted its official exchange-rate structure, moving the public dollar selling rate from 1,320 to 1,520 IQD per USD.
The reported official rates are:
馃挼 1,500 IQD: Government purchase rate for U.S. dollars.
馃彟 1,510 IQD: Dollar selling rate to banks.
馃挶 1,520 IQD: Dollar selling rate to the public.
The adjustment affects how dollars are converted into dinars and has implications for government finances, import costs, and domestic purchasing power.
馃攷 WHAT THIS MEANS: The change is an exchange-rate adjustment, not an appreciation of the dinar. It increases the number of dinars required to purchase one U.S. dollar compared with the previous official rate.
The key question now is whether Iraq can maintain exchange-rate stability while improving access to foreign currency and reducing pressure on the parallel market.
馃彟 2. BANKING-SECTOR REFORM
STATUS: Gradual implementation
The Central Bank of Iraq (CBI) continues efforts to strengthen banking governance, compliance, international correspondent relationships, and financial supervision.
Key objectives include:
Improving banks' compliance with international financial standards.
Strengthening anti-money-laundering and counter-terrorist-financing controls.
Expanding legitimate access to international banking services.
Improving transparency in foreign-currency transactions.
Supporting the gradual rehabilitation of banks subject to restrictions.
Reports in 2026 indicated that some Iraqi banks had made progress toward restoring correspondent banking relationships and meeting the requirements for international transactions.
馃攷 WHAT REMAINS: Progress must extend across the banking sector. Individual banks meeting compliance requirements does not mean every Iraqi bank has regained unrestricted access to international financial services.
WHY IT MATTERS: Stronger correspondent banking relationships can facilitate legitimate trade, international transfers, imports, and business payments while improving oversight of dollar flows.
馃寧 3. INTERNATIONAL TRANSFERS AND ACCESS TO U.S. DOLLARS
Since January 2025, Iraq has increasingly relied on commercial banks and their correspondent relationships to process legitimate international transfers, replacing earlier practices centered on the CBI's direct dollar-transfer mechanism.
The transition aims to make international payments more transparent and bring Iraqi banking operations into closer alignment with international compliance requirements.
In October 2026, Iraqi officials also discussed increasing the availability of physical U.S. dollars to help stabilize the domestic market. A reported proposal involved shipments of up to $1 billion in cash.
⚠️ That figure represents a reported prospective amount; it should not be interpreted as confirmation that the entire amount has already arrived or entered circulation.
馃攷 WHAT THIS MEANS: Iraq is working to improve the distribution of dollars through regulated channels. However, restricted access, compliance requirements, and demand for cash continue to influence the parallel market.
The next milestone is sustained improvement in the availability of dollars for legitimate commercial transactions and ordinary customers.
馃搲 4. CLOSING THE GAP BETWEEN THE OFFICIAL AND PARALLEL EXCHANGE RATES
STATUS: Ongoing; the gap remains significant
Reported market quotations on October 24, 2026, placed the parallel-market rate around 1,690 IQD per USD, compared with the official public selling rate of 1,520 IQD.
Using those indicative quotations, the premium in the parallel market was approximately 11.2%.
The calculation is:
(1,690 − 1,520) ÷ 1,520 × 100 ≈ 11.2%
Actual quotations can vary by city, time, and transaction type.
The government is attempting to narrow the gap through improved dollar availability, regulated banking channels, and measures intended to discourage informal currency transactions.
馃攷 THREE INDICATORS TO WATCH:
馃挼 Dollar availability: Are customers and businesses gaining better access to dollars through official channels?
馃彟 Banking compliance: Are more legitimate commercial transactions being processed through regulated banks?
馃搳 Sustained convergence: Is the parallel-market premium declining over several weeks or months?
WHY IT MATTERS: A persistent reduction in the gap would be evidence that the official system is meeting more of the market's legitimate demand for foreign currency.
However, one favorable quotation or a government announcement does not establish that the gap has been permanently resolved.
馃挸 5. ELECTRONIC PAYMENTS AND REDUCING CASH DEPENDENCE
STATUS: Expansion in progress
The CBI is promoting electronic payments, payment cards, and digital transaction infrastructure to reduce Iraq's reliance on physical cash.
Measures include expanding electronic payment options and encouraging travelers to use cards for eligible overseas expenses.
These initiatives aim to:
Improve transaction transparency.
Reduce opportunities for unrecorded cash transactions.
Strengthen financial oversight.
Encourage more citizens to use formal banking services.
Make payments more convenient for consumers and businesses.
Despite these efforts, cash remains deeply embedded in Iraq's economy.
Reports citing CBI data placed currency in circulation outside banks at approximately 106.8 trillion IQD in May 2026.
馃攷 WHAT REMAINS: Iraq must build public confidence in banks, expand payment acceptance, improve access to banking services, and demonstrate that electronic payments are reliable and practical.
A shift away from cash could improve financial transparency, but it does not automatically increase the dinar's external value.
馃洝️ 6. ANTI-MONEY-LAUNDERING AND INTERNATIONAL COMPLIANCE
STATUS: Active reform program
Iraq continues working to strengthen its anti-money-laundering and counter-terrorist-financing framework.
The Financial Action Task Force (FATF) adopted an action plan with Iraq in 2026 to address remaining deficiencies in its financial safeguards.
The reform effort includes:
Improving the detection and investigation of illicit financial flows.
Strengthening the reporting of suspicious transactions.
Improving the implementation of targeted financial sanctions.
Enhancing supervision of higher-risk financial and nonfinancial sectors.
Strengthening enforcement against informal or illegal money-transfer operations.
馃攷 WHY IT MATTERS: Stronger compliance can improve international confidence in Iraqi banks and help financial institutions maintain correspondent relationships.
However, adoption of an action plan does not mean all requirements have been completed. Progress must be demonstrated and assessed through the relevant international processes.
KEY MILESTONE: Watch for official FATF statements documenting substantial completion of the action plan and any resulting change in Iraq's monitoring status.
馃獧 7. THE DIGITAL DINAR PROJECT
STATUS: Development stage; public launch not confirmed
Iraq has been exploring a digital version of its national currency as part of its broader payment-system modernization efforts.
A digital dinar would involve a digital form of currency or payment infrastructure, depending on the final design adopted by the CBI.
Potential objectives include:
Modernizing domestic payments.
Improving transaction efficiency.
Expanding access to digital financial services.
Supporting more transparent payment flows.
Reducing reliance on physical cash.
⚠️ A digital dinar must not be confused with a revaluation of the physical dinar, a redenomination, or the removal of three zeros.
WHAT REMAINS: A formal implementation framework, technical infrastructure, regulatory arrangements, and an official launch announcement would be needed before a general public rollout could be considered confirmed.
No definitive public-launch date is established here.
馃挼 8. LIQUIDITY MANAGEMENT, INFLATION AND MONETARY STABILITY
STATUS: Active monetary management; structural challenges remain
The CBI uses monetary instruments, including liquidity-management operations and financial instruments, to influence banking-sector liquidity and monetary conditions.
Its broader objectives include maintaining price stability, supporting confidence in the dinar, and managing the effects of liquidity and foreign-currency demand.
However, monetary policy operates alongside significant fiscal pressures.
Iraq's dependence on oil revenue makes government finances vulnerable to changes in oil prices and export volumes. Domestic borrowing and public spending can also affect liquidity conditions.
馃攷 WHAT TO WATCH:
Inflation and consumer-price trends.
Government borrowing and fiscal deficits.
Banking-sector liquidity.
Foreign-exchange reserves and dollar availability.
Stability of the official and parallel exchange rates.
WHY IT MATTERS: Sustainable monetary stability depends on more than a single exchange-rate decision. Fiscal discipline, effective banking supervision, adequate foreign-exchange access, and confidence in the financial system all matter.
馃敘 9. REMOVAL OF THREE ZEROS FROM THE IRAQI DINAR
STATUS: No formal implementation decision confirmed
The proposed removal of three zeros is a separate monetary project often discussed in connection with Iraq's long-term currency reform.
Under a conventional redenomination, the currency unit and nominal prices would be converted using a specified ratio.
For example, under a hypothetical 1,000-to-1 redenomination:
1,000 old dinars would become 1 new dinar.
A price of 10,000 old dinars would become 10 new dinars.
The purchasing power of an individual's holdings would not automatically increase.
The purpose would be to simplify denominations and accounting, not to create wealth merely by changing the numbers printed on banknotes.
⚠️ IMPORTANT: No formal decision authorizing implementation, accompanied by a confirmed nationwide schedule, is established here. Discussion of a possible launch in 2027 or another future period should be treated as speculation unless confirmed by an official CBI announcement and the necessary government decisions.
The removal of three zeros is not the same as increasing the dinar's real purchasing power against the U.S. dollar.
馃搳 10. OVERALL STATUS OF IRAQ'S MONETARY REFORMS
Reform area
Status
Official exchange-rate adjustment
Implemented in October 2026
Banking-sector modernization
Gradual implementation
International bank transfers
Operational; further normalization ongoing
Dollar availability
Measures underway
Parallel-market gap
Still significant
Electronic payments
Expanding
Anti-money-laundering reforms
Action plan active
Digital dinar
Development stage
Liquidity and inflation management
Active; structural challenges remain
Removal of three zeros
No formal implementation decision confirmed
馃幆 11. THE FIVE MOST IMPORTANT MILESTONES TO MONITOR
1. 馃挶 Sustained exchange-rate convergence
The parallel-market premium declines and remains lower over time, rather than merely reacting temporarily to policy announcements.
2. 馃彟 Broader international banking access
More Iraqi banks meet compliance standards and establish reliable correspondent relationships for legitimate international transactions.
3. 馃挸 A measurable reduction in cash dependence
Electronic payments expand, deposits increase, and more transactions move through regulated financial institutions.
4. 馃洝️ Verified international compliance progress
Official FATF assessments document the completion of relevant action-plan requirements and any change in Iraq's monitoring status.
5. 馃摙 Formal CBI decisions on future currency changes
Any decision concerning redenomination, the digital dinar, or a new exchange-rate framework is supported by official documentation rather than predictions or commentary.
馃搶 FINAL ASSESSMENT
Iraq's monetary reform program involves several parallel processes: an implemented exchange-rate adjustment, ongoing banking-sector modernization, a transition toward regulated international transfers, expanded electronic payments, stronger financial compliance, and continued work on monetary stability.
The main challenges are the persistent parallel-market premium, dependence on cash, uneven banking-sector access to international services, and fiscal pressures linked to oil revenues.
For dinar watchers, the most meaningful evidence of progress will be sustained exchange-rate convergence, stronger international banking access, improved financial transparency, and official decisions on any future currency changes.
⚠️ None of these developments, individually or collectively, confirms an imminent revaluation, a specific future exchange rate, or an approved date for the removal of three zeros.
馃敨 1. DISARMAMENT: Prime Minister Ali al-Zaidi has set a June 30, 2027 target for bringing weapons under state control. Partial disarmament has been reported, but full implementation remains pending.
馃洟️ 2. HCL LAW: Iraq’s federal Hydrocarbon Law remains a key unresolved issue. Revenue sharing, oil exports, and control over oil fields remain central to Baghdad–Kurdistan negotiations.
馃挶 3. DINAR EXCHANGE RATE: The official rate is reported at 1,520 IQD per USD, while the parallel market is around 1,684 IQD—a gap of approximately 10.8%. The gap remains significant, and sustained convergence has yet to be confirmed.
馃寪 4. WTO ACCESSION: Iraq continues pursuing World Trade Organization membership. Government statements about meeting requirements do not mean full membership has been approved.
馃 5. BAGHDAD–KURDISTAN RELATIONS: Negotiations continue over the 2027 budget, oil revenues, federal funding, and public-sector salaries. A comprehensive final agreement has not been confirmed.
馃搶 THE BIG PICTURE: Iraq is pursuing security, economic, and institutional reforms, but major milestones remain unfinished. Watch for official HCL approval, measurable progress in disarmament, a sustained reduction in the exchange-rate gap, WTO confirmation, and a binding Baghdad–Kurdistan agreement.
⚠️ These developments do not confirm an imminent dinar revaluation or a specific exchange-rate change.
馃嚠馃嚩馃挶 IRAQI DINAR: REINSTATEMENT, A LOWER INITIAL RATE & A LIMITED EXCHANGE WINDOW?
馃敭 1. An anticipated reinstatement: The preacher says he believes God showed him that the dinar’s reinstatement and a wealth transfer are about to happen. However, he admits, “I don't know when.”
馃挼 2. A lower-than-expected initial rate: He says he saw a rate much lower than many people expect, particularly those who remember the dinar’s former value of around $3 and some cents.
馃搲 3. Millions in expectations: He mentions people expecting $10 million, $20 million, or $30 million, but who might receive, for example, $1 million instead. These are hypothetical examples he gives—not official exchange rates.
⏳ 4. A limited exchange window: According to his vision, there could be a short period to exchange dinars and receive a financial blessing. He warns against waiting for a higher rate, although he acknowledges that some people might exchange part of their holdings and keep the rest in hopes of a future increase.
馃搱 5. Will there be a second, higher rate? He does not confirm that a second rate will occur or that the value will rise afterward. His main warning is not to risk missing the opportunity by waiting for more.
⚡ 6. Sudden changes: He speaks of unexpected financial turnarounds that could happen within a 24-hour period. He connects this idea to the expectations of those believing in the dinar but gives no specific reinstatement date.
馃嚭馃嚫 7. Trump is mentioned: During prayer, he asks God to put pressure on Donald Trump to make the dinar-related event happen and expresses hope that it will occur sooner rather than later.
馃Ь 8. Taxes and diversification: He warns against tax evasion and recommends diversification. He also says that if events do not unfold as people expect, they should not claim he failed to warn them.
⚠️ IMPORTANT: This summarizes the preacher’s prophetic statements and beliefs. It does not confirm a reinstatement date, a specific initial rate, or a second, higher rate. This is not official information from the Central Bank of Iraq.
馃嚠馃嚩馃挶 EL DINAR IRAQU脥: ¿REINSTALACI脫N, TASA INICIAL BAJA Y UNA VENTANA LIMITADA PARA CAMBIAR?
馃敭 1. Una reinstalaci贸n pr贸xima: El predicador afirma que cree haber recibido un mensaje de Dios indicando que la reinstalaci贸n del dinar y una transferencia de riqueza est谩n por ocurrir. Sin embargo, reconoce: no s茅 cu谩ndo.
馃挼 2. Una tasa inicial menor de lo esperado: Dice que vio una tasa mucho m谩s baja de lo que muchos esperan, especialmente quienes recuerdan el antiguo valor del dinar, cercano a $3 y algunos centavos.
馃搲 3. Expectativas de millones: Menciona que algunas personas esperan recibir $10, $20 o $30 millones, pero que podr铆an terminar recibiendo, por ejemplo, $1 mill贸n. Son ejemplos hipot茅ticos que 茅l utiliza, no tasas oficiales.
⏳ 4. Una ventana limitada para cambiar: Seg煤n su visi贸n, habr铆a un per铆odo corto para cambiar los dinares y recibir una bendici贸n financiera. Advierte que no se debe esperar una tasa m谩s alta, aunque reconoce que algunas personas podr铆an cambiar una parte y guardar el resto con la esperanza de que suba.
馃搱 5. ¿Una segunda tasa m谩s alta? No confirma que vaya a existir una segunda tasa ni que el valor vaya a subir despu茅s. Su advertencia principal es no arriesgarse a perder la oportunidad esperando m谩s.
⚡ 6. Cambios repentinos: Habla de cambios financieros que podr铆an ocurrir de forma inesperada, incluso en un per铆odo de 24 horas. Relaciona esta idea con las expectativas de quienes creen en el dinar, pero no ofrece una fecha concreta para su reinstalaci贸n.
馃嚭馃嚫 7. Menciona a Trump: Durante una oraci贸n, pide a Dios que presione a Donald Trump para que haga posible lo relacionado con el dinar y expresa que espera que suceda m谩s pronto que tarde.
馃Ь 8. Pagar impuestos y diversificar: Advierte contra la evasi贸n de impuestos y recomienda diversificar. Tambi茅n dice que, si el resultado no ocurre como la gente espera, no deber铆an afirmar que 茅l no les hab铆a advertido.
⚠️ IMPORTANTE: Todo lo anterior resume las declaraciones y creencias prof茅ticas del predicador. No confirma una fecha de reinstalaci贸n, una tasa inicial espec铆fica ni una segunda tasa m谩s alta. No constituye informaci贸n oficial del Banco Central de Irak.
