Iraq Central Bank Restructures Oversight as Currency Overhaul Discussions Intensify

Iraq’s Central Bank (CBI) approved a comprehensive restructuring of its organizational framework, elevating the Directorate of Non‑Bank Financial Institutions Supervision to a full general directorate and moving several units—including policy, regulatory, digital solutions and financial services—under its control. The Operations and Settlements Department will shift from the Information Technology and Payments Directorate to the Accounting Directorate, while the Information Technology Directorate is being renamed and its Financial Inclusion and Information Security departments abolished. Branch coordination functions are also being centralized under the deputy governor, with the changes set to take effect by July 30.

Separately, economic commentators and advisors have noted that the Iraqi government is considering a major currency overhaul to strengthen state reserves and stabilize the dinar. Proposals include introducing new banknote denominations or removing a zero from the currency to encourage the return of hoarded cash. In parallel, there are reports that Iraq is preparing to launch a central‑bank digital dinar alongside a physical note redenomination, signaling a broader push to modernize its monetary system and attract foreign investment.

These developments come amid discussions of substantial foreign revenue inflows—estimated at $200 billion—through memoranda of understanding with countries such as Iran and Turkey, and broader regional economic revaluation initiatives.