Iraq's Central Bank cuts traveler dollar allowance to $2,000

Shafaq News- Baghdad (Updated at 13:53)

Iraq's Central Bank (CBI) reduced the foreign currency allowance for travelers from $3,000 to $2,000 per trip, an informed source told Shafaq News on Tuesday.

The reduction applies to all Iraqi citizens departing through airports and border crossings, regardless of purpose, tourism, medical treatment, study, Hajj and Umrah pilgrimage, or business travel, the source said. The delivery mechanism remains unchanged: travelers collect their allowance through government and private banks or licensed exchange companies after their passport is stamped and before departure.

Travelers requiring additional funds for exceptional medical or business circumstances are directed to use electronic payment cards loaded with supplementary balances, the source added. Spending outside Iraq through these cards will be processed at the official exchange rate of 1,320 dinars per dollar.

Economic analyst Mohammed al-Hassani told Shafaq News that travelers needing more than $2,000 for travel expenses may turn to unofficial exchange channels, which could raise demand and put pressure on the exchange rate if supply does not keep pace.

The impact, however, may be limited and temporary, al-Hassani added, depending on the volume of affected travelers and the CBI's ability to expand the use of electronic payment cards abroad, a policy the bank has been actively promoting. Sustained card adoption could reduce pressure on the parallel market, and any uptick in the dollar rate would likely be short-lived if accompanied by regulatory measures to ensure currency availability, he said.

No official statement has been issued by the Central Bank confirming the directives as of publication time.