IRAQ IS BACK

"Deleting the Zeros" is a phrase that has stirred considerable excitement among those speculating on the Iraqi dinar. It frequently appears in online discussions, videos, and calls from so-called experts, suggesting that a significant transformation is on the horizon—namely, that the Iraqi government is preparing for a currency overhaul that could greatly benefit those holding physical dinars. However, this enthusiasm often stems from a fundamental misunderstanding of what the term actually signifies, a misunderstanding that is sometimes perpetuated by those promoting the currency.

The confusion primarily arises from the terms "revaluation" and "redenomination," which are often mistakenly used interchangeably. In monetary economics, revaluation refers to a deliberate increase in a country's official exchange rate, meaning the currency becomes more valuable compared to others. This is what many dinar holders are hoping for: a declaration from the Central Bank of Iraq (CBI) that the dinar is worth significantly more than its current value. For instance, if the dinar were to be declared equivalent to one US dollar instead of its current value of approximately 0.076 cents, it would dramatically increase the dollar value of dinar holdings.

On the other hand, redenomination is an administrative process that changes the face value of banknotes without altering their actual purchasing power. For example, if Iraq were to remove three zeros from its currency, a 1,000,000 dinar note would simply become a 1,000 dinar note, while a loaf of bread that cost 1,000 dinars would now cost 1 dinar. In real terms, nothing has changed, and the holder has not gained any value.

The concept of "deleting the zeros" has been a topic of discussion in Iraq for over a decade. In June 2011, a Deputy Governor of the CBI explicitly stated that this move had no connection to the price or exchange rate of the dinar. He emphasized that the idea that deleting zeros would influence the exchange rate was incorrect. By 2012, the project had been postponed to 2014, with officials noting that the current environment was not conducive to such a change. Since then, the project has faced continuous delays, with no new banknotes printed or public education campaigns launched. The CBI has linked any future redenomination to achieving economic stability first, rather than the other way around.

In November 2025, the CBI issued a formal statement rejecting rumors of any impending exchange rate changes, asserting that there was "no intention whatsoever" to amend the dinar's exchange rate. The statement condemned such speculation as harmful to market stability, making it clear that external claims about changing the exchange rate did not reflect the CBI's position. This official denial leaves little room for misinterpretation, yet discussions in various forums persist.

To grasp why "deleting the zeros" is not a positive development for foreign investors, it is useful to examine how similar processes have unfolded in other countries. Turkey's 2005 redenomination is often cited as a success story, where six zeros were removed from the lira—transforming one million old lira into one new lira. While inflation decreased and the economy improved, foreign holders of old Turkish lira notes did not see their wealth increase; their purchasing power remained intact but was not multiplied. Brazil's 1994 currency reform, which introduced the Real amid soaring inflation, also illustrates that successful redenomination addresses underlying economic issues rather than enriching holders of old notes.

Conversely, Zimbabwe's experience with redenomination in 2008, amid hyperinflation, serves as a cautionary tale. The country ultimately abandoned its currency entirely. These examples highlight that redenomination is primarily a tool for accounting clarity and psychological reset, rather than a source of newfound value.

In the dinar speculation community, some claim that redenomination will somehow benefit foreign holders of old-format notes, suggesting that Iraq might offer above-market exchange rates during the transition. However, a redenomination is strictly an exchange at the established ratio, not a windfall. Official sources have confirmed that any redenomination would apply only within Iraq, for Iraqi citizens, using domestic banking systems. Foreign holders of physical banknotes are not included in this plan and will not benefit from it.

The ongoing discussions about redenomination in Iraq are driven by practical considerations rather than a desire to enrich foreign speculators. As a senior advisory panel member of the CBI noted in 2011, there are trillions of dinars in circulation represented by numerous physical banknotes of small denominations. This situation creates challenges for Iraqis making large purchases, often leading them to use US dollars instead of carrying large amounts of cash. The CBI aims to reduce this dollar dependency, streamline accounting practices, and modernize the payment infrastructure. When the time is right, redenomination will serve as a housekeeping measure, contingent on building the necessary preconditions such as expanding digital payments and enhancing banking oversight.

In summary, Iraq has been contemplating the removal of zeros from its currency for at least fifteen years. Each time the topic arises, the CBI reiterates that this is an administrative reform, not a revaluation, and will not affect the exchange rate. The latest official statement from the CBI in November 2025 explicitly rejected any rumors of an exchange rate change and condemned speculation as detrimental to Iraq's economic stability. If and when Iraq does proceed with redenomination, it will primarily benefit Iraqi businesses and the banking sector, not those holding physical dinar bundles abroad, who are waiting for a life-changing financial windfall. The ongoing confusion between these concepts is not accidental; it fuels the dinar speculation industry.

In a remarkable influx of precious metals, over half a tonne of gold has been imported into Iraq through Baghdad International Airport (BIAP) within just two days. This significant shipment, which includes both jewellery and bullion, consists of approximately 300 consignments.

The Ministry of Planning has confirmed that rigorous inspection and hallmarking procedures are being implemented continuously to streamline processing and minimize delays. To ensure the integrity of these operations, officials from the Central Organization for Standardization and Quality Control (COSQC) are actively monitoring activities at the airport.

Abdul Zahra al-Hindawi, the spokesperson for the Ministry, highlighted that Dr. Fayyad Mohammed Abd, the head of COSQC, is present on-site to oversee the inspection teams. This hands-on approach aims to guarantee compliance with established standards and regulations.

To further enhance efficiency, inspection units are functioning around the clock, which is crucial for maintaining the steady flow of incoming shipments. This proactive strategy underscores Iraq's commitment to facilitating trade and bolstering its economy through the importation of valuable commodities.

The Iraqi Ambassador to the United Kingdom, Dr. Salih Husain Ali Al-Tamimi, engaged in a productive meeting with Sir Chris Bryant, the UK Minister of State for Trade, at the Department for Business and Trade in London on April 13, 2026. This discussion centered on strategies to bolster trade relations between Iraq and the UK, as well as the implementation of the Partnership and Cooperation Agreement established on January 14, 2025.

Sir Chris Bryant opened the meeting by welcoming the Ambassador and reaffirming the UK Government's strong commitment to advancing the outcomes of the bilateral agreement. The Ambassador articulated Iraq's eagerness to enhance collaboration across various economic sectors, including infrastructure, essential services, energy security, water management, and digital transformation.

He highlighted the significance of fostering joint efforts with specialized British institutions, particularly UK Export Finance. This collaboration aims to support the Iraqi private sector by facilitating access to financing and offering credit guarantees. Such initiatives are crucial for empowering the private sector to play a pivotal role in sustainable development and to forge meaningful partnerships with British counterparts, alongside public sector entities.

The meeting concluded with a mutual agreement to maintain ongoing coordination and technical discussions to address challenges and expedite the implementation of joint projects. This reflects the deep-rooted and enduring relationship between Iraq and the United Kingdom.

Two tankers have recently made their way into the Persian Gulf, signaling a significant movement in the oil trade from Iraq. The first vessel, the Alicia, has a capacity of 2 million barrels and is scheduled to arrive in Iraq on Thursday to load a substantial cargo of crude oil.

Meanwhile, the Malta-flagged Agios Fanourios I is also en route to Iraq, where it is expected to load Basra crude. This shipment is particularly noteworthy as it is destined for the Nghi Son refinery in Vietnam, highlighting the growing international demand for Iraqi oil.

These developments underscore Iraq's pivotal role in the global oil market, as the country continues to facilitate substantial exports to various international refineries.

The Iraqi State Company for Cement, operating under the Ministry of Industry and Minerals, has announced impressive production and sales figures for February, demonstrating robust operational stability across its facilities. During this period, the company produced over 676,000 tonnes of various cement types, while sales surpassed 664,000 tonnes. This performance not only meets the growing domestic demand but also supports numerous local projects.

Several plants within the company reported significant year-on-year growth, highlighting their operational success: the Kubaisa Cement Plant saw an increase of 37%, the Al-Qaim Cement Plant experienced a 17% rise, and the Sinjar Cement Plant reported a 14% growth. These figures underscore the effectiveness of the company's strategies in enhancing production capabilities.

Director General Awad Kadhim Abdul Amir emphasized that these results are a testament to the dedicated efforts of both technical and administrative teams in maintaining operational stability and driving performance improvements. The company is committed to expanding its production capacity and enhancing efficiency, aiming to bolster the national industry and contribute to achieving self-sufficiency in cement supply.

The Nahr Bin Omar gas investment project is set to commence operations by the end of April, as announced by Iraq's Ministry of Oil. This initiative is part of a broader strategy aimed at enhancing the utilization of associated gas and minimizing flaring, thereby contributing to the country's energy efficiency and power generation capabilities.

The project's initial design capacity allows for the processing of up to 70 million standard cubic feet per day (mmscfd) of raw gas. This will significantly bolster the supply of dry gas, liquefied petroleum gas (LPG), and condensates. Anticipated daily outputs include:

• 80 mmscfd of dry gas for power generation
• 500-600 tonnes of LPG for domestic consumption
• More than 1,800 barrels of condensates

The development of this project is a collaborative effort involving the South Gas Company (SGC), the State Company for Oil Projects (SCOP), and the Basra Gas Company (BGC). This partnership exemplifies a coordinated approach to expanding Iraq's gas infrastructure.

According to the Ministry, the project is expected to significantly reduce gas flaring, enhance the domestic supply of LPG, and support electricity generation. Additionally, it aims to create economic value from gas that would otherwise be flared. During a recent site visit, Deputy Minister for Gas Affairs Izzat Saber Ismail, alongside SGC Director General Ali Salman and Oil Projects Company Director General Ali Wared, confirmed the project's progress.

The Ibn Omar accelerated gas project is a critical component of Iraq's strategy to boost gas investment, decrease reliance on imports, and fortify the nation's power sector.

The U.S. Department of State's Rewards for Justice program has announced a significant reward of up to $10 million for information leading to the capture of Ahmad al-Hamidawi, the leader of the militant group Kata'ib Hizballah (KH). Designated as a Specially Designated Global Terrorist (SDGT) in 2020, al-Hamidawi has been a pivotal figure in orchestrating attacks against U.S. interests in Iraq.

Under al-Hamidawi's leadership, KH has been responsible for numerous assaults on U.S. diplomatic facilities, particularly noted for directing attacks in March 2026. The group has a long history of targeting U.S. personnel and installations using improvised explosive devices (IEDs), rockets, and drones, alongside engaging in kidnappings and violence against innocent Iraqi civilians.

Al-Hamidawi's background includes military and intelligence training from Iran's Islamic Revolutionary Guard Corps (IRGC), where he currently serves as Secretary General and is a member of KH's shura council. Since taking on this leadership role in 2007, he has been instrumental in planning operations against both U.S. and Iraqi security forces, inciting violence through mass protests, and specifically targeting the U.S. embassy in Iraq.

The U.S. government has taken significant steps against al-Hamidawi and KH. Following his designation as an SDGT on February 26, 2020, all of al-Hamidawi's assets within the United States have been frozen, and U.S. persons are prohibited from engaging in any transactions with him. Similarly, KH was designated as a Foreign Terrorist Organization (FTO) on June 24, 2009, which prohibits U.S. individuals from providing any support or resources to the group.

KH has received extensive military training and support from Iran's IRGC-Qods Force and the Iran-backed Lebanese Hizballah, both of which are also recognized as FTOs by the U.S. This collaboration underscores KH's alignment with Iranian interests, aiming to expel U.S. and Coalition forces from Iraq and establish a government in Iraq that aligns with Tehran's agenda.

One of the most notable incidents attributed to KH was a rocket attack on December 27, 2019, against an Iraqi military base near Kirkuk, which resulted in the death of U.S. civilian contractor Nawred Hamid and injuries to several U.S. service members and Iraqi Security Forces. Following this, KH led protests at the U.S. embassy in Baghdad, where demonstrators attempted to breach the embassy's defenses.

The ongoing threat posed by KH and its leadership remains a significant concern for U.S. national security interests in the region, highlighting the complex interplay of local and international dynamics in Iraq's security landscape.

Iraq's Ministry of Trade has announced a gradual recovery in maritime traffic following the reopening of the Strait of Hormuz. While this development marks a positive shift, overall activity remains below pre-crisis levels due to ongoing geopolitical uncertainties.

Early indicators suggest an uptick in trade flows, particularly in the energy sector and goods shipments, as previously delayed cargo begins to transit. This movement has provided some relief to supply chains and contributed to a short-term stabilization in energy markets.

Key benefits of this recovery include:

• The resumption of delayed energy and goods shipments.
• A partial easing of global supply chain disruptions.
• A reduced risk of acute shortages in critical importing regions.
• Initial stabilization in energy prices.

However, several challenges continue to hinder a complete recovery:

• Shipping and insurance companies are adopting a cautious stance due to ongoing security concerns.
• Logistical imbalances persist as global shipping networks remain rerouted.
• Insurance and freight costs have risen significantly.
• The fragile ceasefire and lack of long-term stability add to the uncertainty.

The Ministry's statement emphasized that while the reopening of the Strait of Hormuz is a positive development, it does not signify a comprehensive resolution to the crisis. The benefits observed are expected to be gradual and temporary unless supported by sustained security stability.

Markets are currently in a state of flux, caught between the aftermath of disruption and the potential for recovery. Stakeholders are awaiting clearer signals that could restore confidence and enable global trade flows to return to normal levels.