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Pros and cons.. What is the effect of reducing the ceiling for selling dollars to travelers to only two thousand dollars?

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Pros and cons.. What is the effect of reducing the ceiling for selling dollars to travelers to only two thousand dollars?

Reports and analytics    Dollar prices    breaking    Baghdad International Airport    Central Bank of Iraq    Sell the dollar

2023-03-15 11:17

Shafaq News /
Specialists indicate that reducing the ceiling for selling dollars to travelers in Iraq from seven thousand dollars to only two thousand dollars will reduce fraud through "rental travelers", which will reduce the momentum at the gates of banks,

but, according to specialists, this will return It will harm the "real travelers", and will raise the price of the dollar in the parallel market, which will negatively affect the prices of all materials.

And the Central Bank of Iraq had determined the sale of the dollar to travelers to 2000 dollars instead of 7000 dollars, as of Sunday, 3/19/2023, at the official price of 1320.

This comes a day after setting up a new mechanism, starting today, Wednesday, to sell dollars to travelers at the bank’s outlet at Baghdad International Airport, and specifying 3,000 dollars in cash as a higher ceiling for selling dollars to travelers instead of 7,000 dollars, at the official rate of the Central Bank of Iraq of 1,320.

These decisions aroused dissatisfaction with some citizens, who called for such decisions to be considered "and not arbitrary", which caused a crisis and exploitation by some by deporting citizens for free, calling for the need to conduct a study by specialists to address it.

Pros and Cons

Specialists explain that the procedures of the Central Bank of Iraq are intended to preserve the quantities of cash from foreign currencies, specifically the dollar, from keeping it within the local economy, and not leaving a large amount of it outside the country, which will directly affect the smuggling of the dollar and the removal of foreign currency from the reach of the local economy.

A set of pros and cons emerges in this regard, according to the economist, Dr. Salem Sawadi.

As for the negatives, they include that "the supply of the dollar will be in limited quantities, and thus will affect the rise in the price of the Iraqi dinar against the dollar, which will be reflected in price levels in general, and in inflation." economic at the present time, but

it is hoped that over time there will be a balance between supply and demand,

which will directly affect the general stability of prices

On the advantages of reducing the upper limit for selling the dollar, Sawadi explains to Shafaq News agency,

"The central bank's attempt to rely on the electronic card system, and the cash (local or foreign) - instead of being carried by individuals in their wallets or at their fingertips - is in (the Master Card) or with a credit card." credit carried by travelers or even individuals within the local economy.”  And he shows:

This is a positive factor so that the monetary mass - whether of foreign or local currency - is inside the banking system, and this has great returns on the economy in the future,

just as the global and international trend does not deal with (cash money), but most often with credit cards
.” With the availability of the means to ensure the success of these cards within the local economy.

For his part, the researcher in economic affairs, Ahmed Eid, adds other advantages to the reduction, which is

"reducing fraud and unjustified travel that companies and speculators take through (chartered travelers) for the purpose of obtaining dollar amounts by depositing in banks and withdrawing from airport outlets, which will reduce The momentum taking place and the queues of citizens at the bank gates.

As for the negative side, Eid told Shafaq News agency,

"There are official travelers who reside outside Iraq, or who wish to travel for the purpose of treatment, study, or entertainment.

These categories of travelers have been greatly affected, because determining the amount of this amount will cause great harm to them."  Eid proposes,

"Setting restrictions and conditions for obtaining the dollar amount for residents, by proving their official residence outside the country, or travelers for the purpose of treatment through official official reports, and

for students, it is very necessary to facilitate their obtaining dollars through their academic residence, or what proves Final admission for each student.

As for the impact of this on the local market, he explains that

“the price of the dollar will rise in the parallel market, and

speculators will register this opportunity to raise the exchange rate of the dollar,

which will negatively affect the prices of goods and materials in all their forms
.” randomness," he said.

In turn, the economist, Mustafa Akram, says,

"The issue of selling the dollar to citizens is a temporary, non-permanent stage,

the purpose of which is to increase the supply of cash dollars from outside the platform,

because the platform at the beginning of its implementation was difficult to cultivate special cultures for merchants, such as opening credits or using an electronic payment card."  Akram added to Shafaq News agency,

"But now the Central Bank of Iraq has reduced these amounts to 2,000 dollars (cash), as

for those who want dollars and want to travel abroad, there is a mechanism adopted by the Central Bank, which is filling out the payment card that you have (regular, credit or City)".  And the economist continues,

"The credit and debit cards may contain more than 10 thousand dollars or 10 million dinars, and

you fill them in Iraqi dinars, and spend them inside the country exclusively in Iraqi dinars,

but when leaving the country, they act according to the currency of the country in which they are."


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