The Central Bank of Iraq (CBI) has issued new directives regulating the cash withdrawal of U.S. dollar deposits and incoming foreign remittances. Under the new measures, commercial banks will be permitted to disburse citizens' U.S. dollar deposits in cash, with the regulations set to take effect on July 15, 2026.

Commercial Banks Authorized to Disburse Cash U.S. Dollars

According to an official document issued by the Central Bank of Iraq, commercial banks are now permitted to disburse citizens' foreign currency deposits in cash U.S. dollars.

The document states that the decision is part of the Central Bank's monetary policy and is intended to enable banks to meet beneficiaries' U.S. dollar needs while adhering to government and CBI policies aimed at strengthening confidence in the Iraqi dinar, promoting electronic transactions, and reducing reliance on cash.

Banks to Continue Opening Foreign Currency Accounts

The Central Bank directed commercial banks to continue opening bank accounts for citizens in foreign currencies approved by the CBI.

According to the document, these accounts will earn interest based on each bank's individual policy.

The directive affirms that citizens retain the full right to withdraw both their deposited funds and any accrued interest in cash and in the same currency in which the account is maintained.

New Rules for International Remittances

The Central Bank's document also authorizes commercial banks to disburse incoming international remittances sent to citizens from outside Iraq in U.S. dollars in cash or to deposit the funds directly into the beneficiary's U.S. dollar bank account.

The document further states that the Central Bank of Iraq will meet commercial banks' requests to withdraw cash for received U.S. dollar remittances, provided that the value of those remittances has been credited to one of the CBI's accounts held with its correspondent banks abroad.

Two Categories Covered by the Decision

According to the Central Bank, commercial banks may request cash withdrawals for received U.S. dollar remittances in two specific cases.

• The first case applies to payments made under contracts financed through foreign grants or loans, as well as agreements signed in U.S. dollars with the federal government, whether existing or future contracts that are supported by the Ministry of Planning, provided that the funding entity requires the funds to be disbursed inside Iraq in cash U.S. dollars.

• The second case applies to 40% of incoming remittances received by Iraqi exporters, provided the funds originate exclusively from the export of goods outside Iraq.

The Central Bank of Iraq stated that the new regulations will officially enter into force on July 15, 2026.