Central Bank of Iraq Introduces Online System for Replacing Damaged Banknotes

The Central Bank of Iraq announced on Monday a new electronic procedure for replacing damaged banknotes, clarifying that notes damaged through circumstances beyond citizens’ control can be exchanged free of charge, while cases involving negligence are subject to specific fees.

Haider Ghazi, the bank’s media director, said citizens can submit replacement requests through commercial banks by depositing their damaged cash with the relevant institution. He noted that some banks’ refusal to accept damaged banknotes had created difficulties for the public.

Ghazi explained that, as the Central Bank primarily deals with banks and financial institutions rather than directly with individuals, it has decided to introduce an online service through the Ur electronic platform. The service allows citizens to enter the required information and complete the application procedures before receiving an appointment to visit the relevant authority and hand over the damaged banknotes, regardless of the amount involved.

Regarding replacement fees, Ghazi stated that the bank’s regulations distinguish between damage caused by circumstances beyond a citizen’s control and damage resulting from negligence or failure to properly preserve banknotes. In the former case, replacement is free of charge, while the latter may require citizens to pay a specified proportion of the replacement cost in accordance with the applicable regulations.