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Iraqi Central Bank Cuts Traveler Dollar Access to Twice Yearly

By Markets Desk · · 1 min read
A stack of US dollar banknotes resting on a wooden counter next to a passport and a boarding pass

The Central Bank of Iraq restricts subsidized dollar purchases to once every six months, citing cash shortages.

Key points

  • Travelers can now purchase official-rate US dollars only twice a year instead of monthly.
  • The Iraqi dinar fell to 1,575 per dollar in the Kurdistan Region local market on Tuesday.
  • Iraqi central bank foreign reserves dropped to $80.633 billion by the end of July.

The Central Bank of Iraq reduced traveler access to official-rate US dollars from monthly to semi-annual. This change limits each traveler to two subsidized purchases per year.

The measure took effect at noon on Monday via the bank's electronic application system. Sources at banks and travel agencies confirmed the immediate implementation of the new rules.

Dinar weakness drives policy shift

The Iraqi dinar lost value against the dollar in recent days. The currency traded at 1,575 dinars per dollar in the Kurdistan Region on Tuesday.

A licensed bank official stated the move addresses a shortage of cash dollars. The bank aims to channel more foreign currency toward trade and imports.

This restriction follows a July cut that lowered the monthly allowance from $3,000 to $2,000. The CBI previously cited the need to promote electronic payments as the reason.

Reserves decline amid market speculation

The CBI reported foreign reserves fell to $80.633 billion by the end of July. This represents a drop from $97.432 billion at the end of 2025.

The bank attributed the dollar's rise to market speculation and geopolitical conditions. It maintained that sufficient reserves remain to meet current demand despite the decline.

Sector confirms operational changes

Ata Anwar of the Sulaimani tourism association confirmed the sector received the directive. Information arrived through partner companies in central and southern Iraq.

An internal airline notice instructed staff to verify passenger travel history before processing requests. This step ensures applications comply with the new semi-annual limit.

Based on reporting by Rudaw, compiled by the Tradingbird desk.

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