[Post 1 of 2] Iraq’s move toward a fully digital dinar represents a pivotal step in modernizing its financial landscape and aligning with international financial trends. However, the success of this transformation will depend on how well the country adapts to the new digital era. The introduction of Iraq’s digital dinar could significantly impact foreigners who currently hold IQD, particularly those holding physical cash outside of Iraq. Here’s what to expect: 1. Transition from physical to digital: Since the Central Bank of Iraq plans to gradually phase out paper currency, foreigners holding IQD bank notes may eventually need to convert them into the new digital format… traditional paper notes could become obsolete over time. However, during the transition period physical dinars will likely remain valid until a formal deadline is set.
[Post 2 of 2] Foreign holders of physical dinars may find it more difficult to exchange their IQD bank notes…The central bank may require foreign investors to open an account within Iraq’s banking system…to convert their banknotes into digital form… 3. …If Iraq enforces a fixed exchange rate it could reduce speculation on the currency’s future appreciation affecting those who hold dinars in hopes of an increase in value. 4. The big question is whether non-residents will be able to own and trade digital dinars freely…Iraq may limit digital dinar ownership to Iraqi residents... 5. If Iraq phases out paper dinars completely, foreigners holding physical IQD may need to exchange them within a set time frame before they become worthless… Foreigners holding IQD bank notes should monitor Iraq’s central bank policies closely to see how they will be allowed to convert or exchange their physical dinar.
Sandy Ingram
