Small-denomination banknote shortage disrupts daily trade in Kirkuk

KIRKUK, Iraq — Merchants and currency exchange owners in Kirkuk are struggling to find 250-, 500- and 1,000-dinar banknotes, and the notes that do circulate are often torn, worn or soiled, according to shopkeepers in the city's Doctors' Street, Republic Avenue and Kale Bazaar. With little change available, retailers say they have had to round up prices or add extra items when giving change to customers. Some traders report keeping small-denomination notes out of circulation once they receive them, further reducing supply and complicating everyday transactions. The shortage has become a persistent obstacle to daily commerce in the province. Central Bank of Iraq data show that the number of 1,000-dinar notes in circulation rose from 718 million in 2022 to 775 million in 2026, while 250-dinar notes increased from 795 million to 818 million over the same period. The 500-dinar note declined from 147 million to 145.4 million, leaving the bank with roughly 1.738 billion notes across the three denominations. Officials note the figure does not fully reflect the volume of fit notes actually in use. Analysts warn that unless worn notes are regularly withdrawn and replaced, the shortfall of small denominations will continue to distort pricing and disproportionately affect low-income households.