October 18, 2026 | Baghdad, Iraq
A new foreign-currency allocation mechanism announced by the Central Bank of Iraq officially takes effect today, October 18.
Under the revised rules, eligible travelers may receive $2,000 in foreign currency once every two months, with a maximum of six allocations annually.
That represents a potential annual ceiling of $12,000 per eligible traveler, subject to the bank’s existing conditions.
The central bank announced the decision on October 15, explaining that the mechanism is intended to regulate access to foreign currency and ensure that allocations reach eligible recipients.
The implementation comes shortly after Iraq’s decision to devalue the dinar.
The official selling rate to final beneficiaries was set at 1,520 dinars per US dollar earlier this month.
The exchange-rate adjustment was introduced amid pressure on government finances and oil-export revenues.
A separate diplomatic development: Baghdad is hosting the 52nd session of the Organisation of Islamic Cooperation’s Council of Foreign Ministers on October 17–18.
Iraq’s Foreign Ministry reported participation by representatives of 55 countries and more than 40 organizations.
During Saturday’s opening session, Prime Minister Ali Faleh al-Zaidi proposed closer cooperation among member states in electricity networks, railways, digital payments and trade infrastructure.
No binding implementation agreement for those proposals has yet been verified.
Strategic Assessment
Iraq is attempting to manage two interconnected challenges: pressure on its foreign-currency resources and the need to strengthen regional economic cooperation.
The new traveler-dollar mechanism may improve administrative control over currency allocations, but its effectiveness will depend on transparent implementation and equitable access.
Meanwhile, Baghdad’s diplomatic initiative highlights the potential for regional infrastructure integration to reduce economic vulnerabilities.
The real test is whether these measures improve financial stability and ordinary Iraqis’ purchasing power rather than simply imposing additional restrictions on citizens.