Central Bank Lowers Monthly Cash Limit for Travelers to $2,000

The Central Bank of Iraq announced on Wednesday a reduction in the monthly cash quota allocated to travelers to 2,000 US dollars, down from 3,000 dollars. The Bank issued an explanatory statement regarding "new regulatory instructions concerning the mechanism for meeting the foreign currency demand of citizens traveling outside Iraq." The statement clarified that the decision includes setting the cash quota for adult travelers at 2,000 US dollars per month, compared to the previous limit of 3,000 dollars. This measure comes within the framework of developing the management of foreign currency sales operations, improving the efficiency of resource distribution, and aligning with best international banking practices. The Bank indicated that this action is part of a package of regulatory reforms it is implementing to ensure that foreign currency reaches all eligible individuals, thereby enhancing the stability of the monetary market and raising the efficiency of resource management. The Bank affirmed that these measures are purely regulatory, falling within its efforts to strengthen its ability to efficiently and sustainably address economic changes. They also aim to keep pace with global developments in payment systems by encouraging the use of electronic payment cards, both credit and pre-paid, as a primary and secure means to cover travel expenses outside Iraq. This approach seeks to provide greater flexibility for citizens, support the transition towards a digital economy, and align with modern international banking standards, ultimately fostering confidence in the banking sector and serving the country's higher economic interests.