The Central Bank of Iraq (CBI) has reduced the monthly foreign currency cash quota for adult travelers from $3,000 USD to $2,000 USD to enhance market stability and promote the use of digital payments.

The CBI released updated regulatory guidelines on Wednesday regarding the mechanism for providing foreign currency to citizens traveling abroad.

According to the instruction, "The new rules set the cash quota limit for adult travelers at $2,000 USD per month, instead of $3,000 USD."

The CBI noted that this initiative is part of an ongoing effort to "optimize the management of foreign currency sales, improve resource distribution efficiency, and align with international banking best practices."

The measure is part of a broader package of regulatory reforms by the Central Bank aimed at stabilizing the money market, optimizing resource management, and ensuring equitable access to foreign currency.

CBI Directives Aim to Modernize Iraq's Travel Payments 

The CBI stressed that the measures are “purely regulatory,” adding that they are part of a process to strengthen its ability to face economic changes efficiently and sustainably.

“It also aims to keep pace with global developments in payment systems by encouraging the use of electronic payment cards—both credit and prepaid cards—as a primary and secure way to cover travel expenses outside Iraq,” the statement highlighted.

Per the Central Bank, this measure enhances citizen flexibility, accelerates the digital transition, and aligns with international standards to strengthen banking trust and support national economic interests.

Digital Payments to Combat Parallel Currency Market Abuse 

While the cash distribution process at airports and land borders remains the same, citizens requiring additional funds are instructed to use electronic payment cards. 

This regulatory shift aims to curb lucrative black-market currency speculation caused by the gap between the official 1,320 IQD bank rate and higher unofficial parallel market rates.