The Central Bank of Iraq (CBI) has reduced the monthly dollar allocation available to travelers from $3,000 to $2,000, describing the move as part of broader banking reforms aimed at improving foreign currency management.
In a statement on Wednesday, the CBI said the decision is intended to improve the efficiency of dollar sales, ensure fairer access to foreign currency, and align Iraq’s banking system with international standards.
The bank said the new measures encourage citizens to rely more on electronic payment methods, including credit and prepaid cards, for travel expenses instead of cash transactions.
The CBI described the decision as a regulatory measure designed to support the transition toward a digital economy, strengthen confidence in the banking sector, and improve the management of financial resources.
Iraqi travelers have traditionally purchased US dollars from banks and exchange companies at the official exchange rate, which is significantly lower than rates in the parallel market. The previous $3,000 monthly limit had faced criticism over misuse and its impact on foreign currency availability.
The decision follows recent changes within Iraq’s financial sector, including leadership changes at the Central Bank and renewed efforts to strengthen anti-money laundering measures and financial oversight.
The CBI said the reforms are part of ongoing efforts to modernize Iraq’s payment system and create a more stable and efficient foreign currency market.
