The Iraqi Dinar - what it’s worth and where to get it
Many Iraqi banknotes feature some of the country’s most famous historic sites
Iraq’s currency is the Iraqi Dinar (IQD) and the money is all in paper notes. There are no coins. Due to historic devaluation, denominations are quite high. The smallest note is IQD250 ($0.20) and the largest is IQD50,000 ($38.20). In country, it’s preferable to avoid having too many IQD50,000 notes as these are more useful for paying for more substantial costs such as hotel accommodation and can pose an annoying change issue when paying for everyday things like taxis and food, which are generally fairly cheap.
Iraq is a cash-based society and banking infrastructure, especially that which accepts international cards, remains limited, although this is improving. Therefore, it advisable to travel to Iraq with enough cash in foreign currency to cover your anticipated expenses for the whole trip.
The best option is to travel with American dollars as these are the very easiest to exchange across the country. Newer dollar bills (in higher denominations of $100 and $50) in good condition - not crumpled and dog-eared - are preferable. The exception to this is if you’re getting a visa on arrival, where you will want to have the exact change (currently around the $80 mark) in dollars to hand.
In our experience, neither Euros nor British Pounds are as easy to exchange and, although this is improving, the rate doesn’t seem to be as good as for dollars.
Unless you’re travelling with a tour group or on a pre-arranged tour (which may require payment in dollars), there is little one generally has to pay for in dollars, apart from some higher-end or pre-booked hotel accommodation. Some local tour guides or pre-arranged taxi drivers for day-trips may ask for payment in dollars but, even with these, you are likely to still be able to pay in dinars.
It’s straightforward to find money changers in cities and large towns and the rate is likely to be roughly the same, varying very slightly from day to day. If you’re stuck, some hotels or businesses may also be prepared to exchange smaller amounts of dollars (a hundred or so) at the going rate.
There is a money exchange booth in the main arrivals hall in Baghdad Airport, which offers a less completive rate than elsewhere. In autumn 2024, the airport rate was $100 - IQD134,000 whereas the rate downtown was $100 - IQD150,000. If you are arriving with no dinars at all, it may useful to change a small amount at the airport, to pay for the airport bus, taxis and snacks. If you’re staying in a budget hotel, this will also expect you to pay, on arrival, in dinars. Although the airport bus/taxis may accept dollars, it should keep your costs down a little to use dinars.
If you’re planning on travelling extensively around Iraq independently, it’s advisable to change a substantial amount in a major city such as Baghdad before setting out as, in smaller towns, it can be harder to change money.
There are some ATMs in Iraq that accept international bank cards but functioning ones are still relatively few and far between at present (although this is improving all the time), and may arbitrarily not give out money. Depending on the ATM, you may be able to withdraw dollars as well as local currency.
There are several ATMs in Baghdad airport and ATMs can also be found in higher-end Baghdad hotels and these options are more likely to work with a foreign card. If there are two and one doesn’t give you any money, it’s always worth trying the other one, which just might oblige.
The functionality and acceptance of international cards at ATMs on the street tends to be more hit and miss. Withdrawing money from an ATM or using your international cards to make purchases is highly likely to work out more expensive than changing cash. Your bank won’t offer a particularly favourable exchange rate (certainly not as favourable as the downtown money changers) and will also probably be charging you foreign transaction fees.
