Iraqi economist says currency redenomination could expose hidden cash, faces technical hurdles

BAGHDAD, Iraq — An Iraqi economist said a proposal to redenominate the Iraqi dinar and remove three zeros from the national banknotes would help surface cash holdings accumulated through corruption and stashed in informal storage at home, in vaults and abroad. Ziyad Al-Hashemi, speaking in remarks reported by local media, said the exchange would pull unrecorded capital back into the formal financial system by forcing holders of large, unregistered sums to convert or explain their origins. Al-Hashemi cautioned that the plan carries significant uncertainty and that its proposed timeline has not been confirmed as realistic. He pointed to technical and operational challenges, including the printing of new banknotes, distribution logistics and the transition period needed to phase out the old currency. The economist said Iraq's central bank is continuing preparations for the redenomination and coordinating with the relevant authorities before a final decision is made. He did not specify a target date for issuing the new currency. No further details on the timetable or operational plan were immediately available.