By John Lee.
The Central Bank of Iraq (CBI) has reportedly ruled that banks may disburse customers' dollar-denominated deposits in cash, effective 15 July 2026.
According to the state-run Iraqi News Agency (INA), a CBI circular sets out the following provisions:
- Banks may continue to open foreign-currency accounts for customers, with customers entitled to withdraw both principal and interest in the currency of the account.
- Banks may deliver inbound remittances from outside Iraq to customers in cash US dollars, drawn from the bank's own available sources, by agreement between the bank and the customer, for permitted purposes - or deposit the amounts onto customers' dollar-denominated bank cards for use inside and outside Iraq.
- The CBI will fulfil banks' requests for cash withdrawals against inbound dollar remittances, provided the remittance amounts are deposited into a CBI account held with a correspondent bank abroad, in the following two cases: (a) government contracts funded by grants or foreign loans, and agreements signed with the federal government in US dollars - whether current, ongoing, or to be concluded in future - with Ministry of Planning endorsement where the funding party requires cash dollar payment inside Iraq; and (b) 40% of inbound remittances to Iraqi exporters arising from their exports abroad.
- Circular No. 8587 of 31 December 2023 is cancelled.
The CBI stated that the measures are intended to enable banks to meet customers' legitimate dollar needs, while remaining consistent with government and CBI policy of strengthening confidence in the Iraqi dinar, promoting digital transformation, and reducing cash transactions.
(Source: Iraqi News Agency)
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