10 Things the Central Bank of Iraq Said About the Iraqi Dinar in 2025
In 2025, the Central Bank of Iraq spoke many times about the Iraqi dinar. Here are the most important things they clearly said—in plain language.
1. Iraq’s dollar system is tightly controlled
On February 19, the Central Bank said Iraq’s dollar distribution system is now one of the most closely monitored in the world. This came after meetings with the U.S. Treasury and the Federal Reserve. The goal is simple: stop manipulation and illegal dollar leaks. The bank also warned people not to believe rumors and to rely only on official information.
2. Cash use will slowly fade away
On February 27, the CBI governor said Iraq is moving toward digital payments. More ATMs and e-wallets are being used, and financial inclusion jumped from 20% to 40% in just two years. Banks are changing fast and moving toward smart digital systems instead of old-style banking.
3. Approved banks for exchanging dinars to dollars
On May 8, the Central Bank announced a clear list of banks and companies where pilgrims can officially buy dollars. This was done to keep exchanges organized and transparent.
4. Wallet-to-wallet transfers are live
On September 4, the CBI launched direct transfers between digital wallets. This made sending money faster and easier for people and businesses and pushed Iraq further toward a digital economy.
5. The Investment Department supports dinar stability
On November 19, the CBI explained that its Investment Department plays a key role in keeping the dinar stable and maintaining confidence in the currency.
6. Clear rules for exchanging banknotes
On November 21, the Central Bank released detailed rules for replacing and trading paper money. These rules explain how damaged notes are handled and how cash is sorted and counted.
7. No change to the exchange rate
On November 24, the CBI strongly denied rumors about changing the dinar’s exchange rate. The bank said these rumors are meant to confuse people and disrupt the market.
8. Digital dinar is coming—but not yet
On December 2, the governor confirmed that a digital dinar is being developed. However, it needs time and strong infrastructure. He also made it clear that the exchange rate will not be used to fix budget problems.
9. Less cash in circulation
On December 17, the Central Bank reported that the amount of currency in circulation dropped by 5.5% compared to last year. This points to increased digital payments and better cash management.
10. Inflation hit historic lows
On December 18, the CBI announced that inflation fell to minus 0.8% in the third quarter of 2025. That’s a major drop from 3.5% the year before and shows stronger price stability.
