The Central Bank of Iraq (CBI) has reportedly approved new rules allowing banks to give customers their US dollar deposits in cash, starting from July 15, 2026.
Under the new measures, banks can continue opening foreign-currency accounts, and customers will have the right to withdraw both their deposited funds and any earned interest in the same currency as their account.
The CBI also said banks can provide incoming international money transfers to customers in cash US dollars using the bank’s available funds, provided there is an agreement between the bank and the customer and the transaction meets approved requirements. Alternatively, the funds can be loaded onto customers’ dollar-denominated bank cards for use inside and outside Iraq.
In addition, the central bank will meet banks’ requests for dollar cash withdrawals linked to incoming transfers that are deposited into CBI accounts held with correspondent banks abroad. This applies in two specific cases:
- Contracts funded by foreign grants or loans, as well as agreements signed with the Iraqi government in US dollars, where the funding party requires cash dollar payments within Iraq.
- Up to 40% of incoming transfer revenues received by Iraqi exporters from their overseas exports.
The CBI also announced the cancellation of Circular No. 8587, which was issued on December 31, 2023.
According to the central bank, the new rules are designed to help banks meet customers’ legitimate demand for US dollars while still supporting broader government and CBI goals. These goals include strengthening confidence in the Iraqi dinar, encouraging digital banking services, and reducing reliance on cash transactions in the economy.
