Discover everything you need to know about using money in Iraq, from common payment methods to currency exchange, tipping tips, and avoiding fraud.
Is Cash Preferred Over Cards in Iraq?
Short answer: Yes, cash is still king in Iraq. According to World Bank data, less than 20% of the population has a bank account, and only about 1.5% have a credit card [1]. This means the vast majority of transactions are done in cash, especially in small markets and local stores.
However, there is a radical transformation happening in the Iraqi financial system. The Central Bank of Iraq announced that in July 2026, cash payments will be eliminated in all government institutions [2]. This transformation has already begun in July 2025, with a ban on cash payments within official offices. This move is expected to bring significant benefits such as enhanced transparency, reduced corruption, and improved efficiency of government payments [3].
Can I Use Credit or Debit Cards in Iraq?
Usage is relatively limited. Iraqi bank-linked Visa cards only work within the country and cannot be used for international transactions [4]. They also cannot be linked to global services like Apple Pay or PayPal, making it difficult for Iraqis to engage in global commerce.
However, the Central Bank of Iraq has issued licenses to 17 companies to operate digital wallets, including AsiaHawala, Zain Cash, NassWallet, and FastPay [4]. However, consumers are hesitant to adopt these systems due to reliability issues and frequent disruptions.
Where Can I Find ATMs in Iraq?
ATMs are mainly available near bank branches, and may be rare in rural areas or outside major cities [4]. If you need to withdraw cash, look for ATMs near bank branches or in large shopping malls.
What Are Currency Exchange Rates in Iraq?
The official rate of the Central Bank of Iraq is 1,320 IQD for 1 USD. However, rates vary in the market, and on February 2, 2026, rates were as follows [5]:
- Baghdad: Sell 100 USD = 148,700 IQD, Buy 100 USD = 148,200 IQD
- Erbil: Sell 100 USD = 148,900 IQD, Buy 100 USD = 148,400 IQD
- Basra: Sell 100 USD = 148,700 IQD, Buy 100 USD = 148,200 IQD
It is important to note that these rates vary by location and market, so it is best to compare rates before exchanging your currency.
How Much Should I Tip in Iraq?
In restaurants, it is customary to tip 10-15% [6]. As for other services, there is no specific tipping system, but it is acceptable to give a small amount as appreciation for good service.
What Scams Should I Watch Out For in Iraq?
There are several types of scams to be aware of:
- Fake websites claiming to represent the Australian Government or the Iraqi Government [7].
- Companies claiming to be Iraqi importers offering work in an unusual or suspicious manner [7].
- Individuals offering fake Iraqi ID cards not accepted by local authorities [7].
- Websites offering fake visas outside official channels [7].
To protect against these scams, it is recommended to contact the relevant embassy or consulate to verify any official communications, deal only through official channels for visas, and seek legal advice when dealing with alleged companies.
Sources
- Why cash is still king in Iraq - https://restofworld.org/2023/iraq-digital-payments/, 2023
- Iraq says goodbye to cash payments by July 2026 - InfoPlus Network - https://www.infoplusnetwork.com/, 2025
- Iraq currency exchange rates – February 2026 - https://en.964media.com/44772/, 2026
- Iraq Travel Guide | Complete Guide 2026 - https://www.grabasim.com/guides/iraq
- Iraq Travel Advice & Safety - https://www.smartraveller.gov.au/destinations/middle-east/iraq
- Iraqi Dinar to USD Forecast 2025–2027 - https://www.ultimamarkets.com/, 2025
- Tips and how to travel to Iraqi Kurdistan in 2026 - https://againstthecompass.com/en/iraqi-kurdistan-travel-guide/, 2026
❓Frequently Asked Questions
Here are answers to frequently asked questions about the content above
Yes, there is a shift towards electronic payment. The Central Bank of Iraq announced that in July 2026, cash payments will be eliminated in all government institutions. However, cash remains the preferred option for most people.
No, foreign credit cards do not always work in Iraq. Visa cards linked to Iraqi bank accounts only work within the country and cannot be used for international transactions.
It is best to compare market rates before exchanging currency. The official Central Bank rate is 1,320 IQD per USD, but market rates vary.
ATMs are mainly available near bank branches. It is important to be cautious when using them and ensure the machine is in a safe and monitored location.
Carry enough cash, be wary of scams, verify any official communication through proper channels, and deal only with trusted exchange offices.
Yes, there are limits on the amount of cash that can be brought in or taken out. It is best to check current customs regulations before traveling.
