Iraq’s Central Bank Enhances Currency Security Measures
On January 19, the Central Bank of Iraq announced the introduction of improved security features on the banknotes in circulation. This initiative aims to educate the public, as well as businesses and financial institutions that handle these notes daily. The bank has released a technical bulletin detailing new prominent security signs designed to assist visually impaired individuals in distinguishing between different denominations by touch.
Combatting Counterfeiting and Money Laundering
Mazhar Mohamed Saleh, the Economic Adviser to the Iraqi Cabinet, emphasized that by introducing a new currency, the government is taking proactive measures to protect its national currency and enhance its security. Saleh noted that since the first issuance of currency in 1934, Iraq has relied on leading international printing firms for currency production, with local printing only occurring during periods of sanctions.
Currently, Iraq continues to partner with top international companies noted for their reliability and adherence to stringent safety standards, a critical factor for ensuring economic security on both national and global levels. Saleh elaborated that after 2003, Iraq updated its currency printings via reputable British and German firms. The reprinting of currency is a routine action aimed at replacing damaged notes and integrating new security features that combat forgery and money laundering.
Protecting Economic Rights
These measures reflect the government’s commitment to safeguarding citizens’ economic rights and maintaining stability in the Iraqi economy. The central bank operates as the sole authorized entity for issuing currency and maintains strict security oversight over the printing and distribution processes to prevent the circulation of counterfeit money.
Saleh also highlighted that the cost of reprinting individual banknotes is minimal, making it a viable option for bolstering the security of the nation’s currency. This practice aligns with global central bank strategies focused on stabilizing national currencies and securing national economies.
Support for the New Currency Initiative
Financial researcher Mustafa Hantoush viewed the printing of new currency to replace damaged notes and supplement the existing market as a sound strategic move for Iraq. He indicated that Iraq boasts a strong balance of foreign currencies and gold, which supports any newly printed dinar.
Hantoush asserted that implementing advanced security features in the new currency is beneficial and that the costs associated with issuing new notes are comparable to those of the existing currency. He elaborated that this undertaking does not signify a radical shift in currency design but rather an enhancement of security specifications.
Regulatory Praise and Outlook
Iraqi Parliament member Haitham Al-Zarkani praised the central bank’s initiative, noting the positive direction it represents for the Iraqi currency. He stressed the importance of implementing robust security measures in response to the issues of forgery that have hindered international confidence in the Iraqi dinar. Moreover, the introduction of features catering to individuals with visual impairments reflects an important step forward in addressing humanitarian needs while also ensuring economic stability.
The central bank had previously issued a series of new banknotes in 2018 and has consistently updated its currency to enhance security. Recent efforts underscore a wider strategy aimed at strengthening the overall economic framework and enhancing public trust in the Iraqi currency.
Economist Safwan Qusai remarked on the central bank’s commitment to improving the safety and integrity of paper currency while pushing for financial inclusion and a transition towards electronic transactions. He emphasized that transitioning to more secure currency does not introduce risk, as the monetary base remains under strict central bank control.
Qusai noted that implementing specialized inks for the visually impaired shows a genuine commitment to inclusivity within the community. This well-planned currency initiative aims not only to modernize Iraq’s financial ecosystem but also to safeguard the interests of all market participants and enhance the overall economic landscape.
In conclusion, the moves undertaken by Iraq’s central bank to enhance the security features of currency signify a strategic approach to maintaining economic stability, protecting consumer interests, and adapting to global currency trends.