Counterfeit Iraqi dinars raise market fears, prompt crackdown
Shafaq News- Baghdad
Reports of counterfeit Iraqi banknotes circulating in local markets have raised concerns among traders and consumers, as authorities step up efforts to combat currency smuggling and counterfeiting.
A manager at a private Iraqi bank told Shafaq News that border authorities had detained several people on Wednesday for allegedly attempting to smuggle counterfeit banknotes into Iraq. He provided no details on the crossing, the amount seized, or the scale of counterfeit currency in circulation.
In Baghdad's Jameela industrial district, trader Abu Ahmed warned that large quantities of counterfeit 25,000-dinar notes had reportedly entered the market on Wednesday. He said the notes were difficult to distinguish from genuine currency and urged consumers and businesses to check their security features.
Central Bank of Iraq (CBI) media director Haider Ghazi told Shafaq News that counterfeit notes are detected through official reports and cash inspections at financial institutions, including checks on deposits from banks and financial companies.
For his part, economist Mohammed al-Hasani warned that counterfeit banknotes could cause financial losses and slow transactions in Iraq's cash-dependent markets as businesses impose stricter checks.
He stressed that counterfeit currency does not necessarily weaken the dinar's exchange rate but could undermine confidence in cash transactions if it became widespread.
Under CBI regulations, banks must confiscate counterfeit notes discovered during deposits, issue official receipts, document the details, and forward the notes to the Central Bank. Banks may face penalties if counterfeit currency is found in their deposits.
Separately, Iraq's Interior Ministry said Senior Undersecretary Hussein al-Awadi had ordered intensified efforts against currency smuggling, counterfeiting, and money laundering during a meeting with senior organized crime officials on Thursday.
