For decades, Iraqis have been accustomed to dealing with hundreds of thousands, or even millions, of Iraqi dinars, after the Iraqi currency had completely different forms, denominations, and values.
Until the 1980s, small denominations of dinars, fils and coins were part of daily transactions. Paper denominations were of limited value compared to the numbers that later became familiar.
But after the 1991 war and the imposition of the economic blockade on Iraq, the actual value of the dinar declined sharply, and the previous regime resorted to issuing large quantities of currency, until small denominations gradually disappeared and banknotes of denominations of one thousand dinars, ten thousand dinars and more appeared.
With the increase in the volume of cash transactions, some merchants began to deal with large amounts of money by weight instead of counting them paper by paper, due to the large amounts and the decline in the value of the dinar against the dollar.
The march of the Iraqi dinar shows the extent of this decline. In the 1970s, the dinar was equivalent to more than three dollars in some years, while the official exchange rate today is about one thousand three hundred dinars to one dollar.
An old project returns to the forefront
The idea of deleting three zeros from the Iraqi currency is not new. It was formally proposed and studied years ago, and was strongly talked about again in 2007, but it did not enter into force. In August 2026, the file returned to the forefront after statements by Communications Minister Mustafa Sanad, who spoke about the issuance of a decision related to changing the currency and deleting zeros from it.
But information is still conflicting. In June 2026, the government denied the existence of an official trend or decision to delete the zeros or change the national currency. So far, the Central Bank of Iraq has not issued a detailed announcement specifying the date for implementing the process of deleting the zeros or its mechanisms. Therefore, implementation cannot be considered scheduled or imminent unless a clear official announcement is issued by the competent authorities, especially the Central Bank of Iraq and the Council of Ministers.
Here a basic point emerges: deleting the zeros does not mean increasing the real value of the dinar or increasing the purchasing power of the citizen. It is, in essence, a renaming of the monetary unit, turning larger numbers into smaller numbers.
Financial and economic expert Dr. Wael Munther says: “Deleting the zeros is a measure that restores the nominal value of the currency and simplifies monetary transactions and accounting. But it does not reduce inflation or increase the purchasing power of the dinar.”
He added, "Its benefit is limited to reducing the volume of cash in circulation and facilitating cash management. It can contribute to accessing funds located outside the banking system and hidden in homes."
International experiences in deleting zeros from the currency
There are many experiences of countries renaming their currencies and deleting zeros from them. Some of these experiments were relatively successful, while others failed to achieve their goals when they were not accompanied by economic and monetary stability.
Türkiye
Türkiye is one of the most cited examples in the Iraqi debate. On January 1, 2005, Türkiye removed six zeros from the lira, making one million old lira equal to a new Turkish lira. During 2005, the two currencies were traded together, before the old notes began to be gradually withdrawn as of January 1, 2006.
But deleting zeros was not the only procedure. It came after years of policies aimed at reducing inflation and achieving greater monetary and financial stability. Therefore, deleting zeros was part of a broader monetary reform, and not a single treatment for the inflation problem.
Romania and Ghana
In Romania, ten thousand old lei were converted into one new lei in July 2005. The process helped simplify prices, accounting records and monetary transactions, but it did not change the real value of savings or salaries, as they were converted in the same ratio.
As for Ghana, it launched the process of renaming its currency in July 2007, so that ten thousand old “cedi” became equal to one new “cedi.” The process included banknotes, coins, and bank accounts, and one of its goals was to facilitate transactions and reduce problems resulting from the use of large cash numbers.
Experiments did not succeed in stopping inflation
Zimbabwe
Zimbabwe provides a clear example that eliminating zeros alone cannot stop inflation. The country has renamed its currency several times over the years. In 2006, three zeros were deleted, then ten zeros were deleted in 2008, and an additional twelve zeros in 2009.
But hyperinflation continued, and the numbers quickly rose again. Eventually, Zimbabwe practically abandoned its local currency for a period and adopted foreign currencies for a large portion of its transactions.
Venezuela
As for Venezuela, it renamed its currency several times in light of high inflation. In 2008, three zeros were deleted, in 2018, five zeros were deleted, and then six more zeros were deleted in 2021.
But the renaming operations did not address the causes of the economic crisis, and inflation continued to strongly affect the value of the currency. In 2021, every million former bolivars became equivalent to one new bolivar.
What does deleting zeros mean for Iraqis?
If you delete three zeros from the Iraqi dinar, one hundred thousand old dinars will become one hundred new dinars, and one thousand old dinars will become one new dinar. But this does not mean that the citizen will become richer or that the purchasing power of the dinar will increase.
If prices, salaries, savings, and contracts were converted in the same ratio, the actual economic value would remain the same. An employee who receives, for example, one million old dinars will receive, after renaming, a thousand new dinars, while the price of a commodity that cost one hundred thousand dinars will turn into one hundred new dinars. Therefore, the main issue is not the number of zeros that will be deleted, but rather the economic conditions that will accompany the process, according to what financial experts believe.
Lessons learned for Iraq
International experiences show two different results. Currency renaming is most successful when it comes after achieving some degree of price stability, controlling inflation, consolidating public finances, and enhancing confidence in the banking system and the currency, as happened in Türkiye.
But if the problems of inflation, fiscal deficits, monetary financing, and weak confidence in the currency continue, then deleting the zeros may turn into a mere arithmetic change, without addressing the basic economic problems, as the experiences of Zimbabwe and Venezuela have shown.
Financial and economic expert Dr. Wael Munther believes in an interview with DW Arabia that “the process is a regulation of currency management and not a comprehensive development plan in itself because the positive impact of its implementation requires stability in the exchange rate, control of inflation, diversification of the economy, and restructuring of the banking sector in a way that contributes to withdrawing funds circulating outside banks.”
As for Iraq, the success of any process to delete the zeros will not depend on the design of the new banknotes or the size of the denominations only, but rather on the ability of the government and the central bank to maintain price stability, manage the monetary mass, enhance confidence in banks, and ensure a clear and safe transition from the old currency to the new one.
Dr. Wael adds: "The success of the experience of some countries was associated with structural reforms and financial discipline, while countries failed due to their continued printing of money and the absence of political and financial stability."
He points out that "Iraq needs to verify its comprehensive readiness in this field by ensuring complete political stability and structuring the economy, which makes the implementation of the issue at the current stage closer to a formal change that carries new financial costs if it is not accompanied by real economic reforms."
Therefore, the real dispute is not about the number of zeros that can be deleted, but rather about whether the Iraqi economy is able to prevent the return of these zeros again.
