Floos - let’s talk about money
Iraq’s currency is the Iraqi Dinar (IQD) and the money is all in paper notes. There are no coins. Due to devaluation, denominations are quite high. The smallest note is IQD250 ($0.17) and the largest is IQD50,000 ($34.25). It can be preferable to avoid having too many IQD50,000 notes as these are more useful for paying for hotel accommodation than for other everyday things, 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. We find it advisable to travel to Iraq with enough cash in foreign currency to cover your anticipated expenses for the whole trip.
It’s preferable to travel with American dollars as, in our experience, neither Euros nor British Pounds are as easy to exchange. Newer dollar bills (in higher denominations of $100 and $50) in good condition - not crumpled and dog-eared - are preferable.
Unless you’re travelling with a tour group, which may require payment in dollars, there is little one generally has to pay for in dollars, apart from higher-end or pre-booked hotel accommodation. Some other costs such as local tours or day-long trips with a driver may ask for payment in dollars but, even with these, you are likely to still be able to pay in dinars, which we usually find preferable.
It’s straightforward to find money changers in cities and large towns and the rate is likely to be roughly the same, varying slightly from day to day or place to place. Some hotels may also be prepared to exchange smaller amounts of dollars (a couple of hundred) at the going rate.
There is a money changers in Baghdad Airport, which offers a slightly less completive rate than elsewhere. In December 2021, the airport rate was $100 - IQD140,000 whereas the rate in the city was $100 - IQD147,000. It is useful to change some money at the airport, to pay for the airport bus and taxis. Although these 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 reasonable 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 that accept international bank cards but functioning ones are relatively few and far between at present, 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 often be found in higher-end Baghdad hotels. Withdrawing money from an ATM may work out a slightly more expensive option than changing cash, depending on your bank fees and charges.
*floos (فلوس) is Iraqi dialect for money.
