Banknotes Replacement Cretirea

Replacement Criteria for the Damaged and Defective Banknotes

Damaged banknotes are all notes which remain in circulation and pass a longtime on its usage. Such frequent use leads to worn and damage the banknotes. This dictates on central banks the responsibility to withdraw from circulation all worn and damaged banknotes. This operation is limited on Central Banks which have the right to execute the worn and defective banknotes, and replace them for the costumers in the same value and according to the specific criteria set by the Central Bank of Iraq to receive these notes and as follow:

1. Missing part of the banknote should not exceed on half of the note.
2. Dirt/ Soil (fat, oil, colorful etc...) banknotes.
3. Banknotes contain adhesive tape.
4. Burnt & buried banknotes.
5. Defective banknotes.
6. Banknotes composing two parts with different serial number.

Whereas the damaged banknotes which are called rejected banknotes can not be replaced and received by Central Bank. Central Bank of Iraq takes over the withdrawal and execution them with no compensation for the owner, only in case of existing persuaded evidence that the missing parts are completely destroyed. Then the decision of the compensation will be either entirely or partially and according to the below criteria.

1. Banknotes contain deliberately writings, drawings and stamping which lead to disappearance the features of the banknote.
2. Torn banknotes for more than 6 parts.
3. Mutilated and perforated banknotes and if the missing part is more than 50%.

Perforated, lost and stolen banknotes or coins would not be compensated.