Suspension of official dollar sales leaves Kurdistan travelers facing higher costs
Tour operators say halt in access to government-rate foreign currency forces travelers into parallel market, raising travel expenses
ERBIL (Kurdistan24) — The suspension of U.S. dollar sales at Iraq's official exchange rate for travelers departing through airports has forced residents of the Kurdistan Region to turn to the parallel currency market, increasing travel costs and causing financial losses for both passengers and tourism companies.
According to a Kurdistan24 investigation by reporter Azar Farouq, the sale of U.S. dollars at the official Central Bank exchange rate of 132,000 Iraqi dinars per $100 has been halted for travelers in the Kurdistan Region.
Previously, each traveler was eligible to purchase up to $2,000 at the official rate. However, that service has now been suspended, leaving travelers to obtain foreign currency at significantly higher market rates.
Dildar Ahmed, the owner of a tourism company in Erbil, told Kurdistan24 that the suspension has created major challenges for the travel industry.
He noted that, before the latest decision, some people from Erbil and surrounding areas traveled to Baghdad or Kirkuk solely to purchase airline tickets and benefit from the difference between the official and market exchange rates.
"This turned travel into a commercial activity rather than genuine tourism," Ahmed said.
Mohammed Muhiddin, a tourism official, also told Kurdistan24 that suspending official dollar sales has negatively affected both tourism companies and travelers.
He explained that the measure has impacted both air and overland travel, with many people suffering financial losses as a result.
Meanwhile, Iraqi social media users recently circulated a forged document claiming that each traveler would be allowed to purchase up to $5,000 at the official exchange rate for one month. The document was later found to be fake and had no official basis.
As official dollar sales remain suspended, travelers have increasingly relied on the currency exchange market.
Kaifi Khoshnaw, spokesperson for Erbil's currency exchange market, told Kurdistan24 that a traveler seeking to purchase $2,000 currently pays around 3.1 million Iraqi dinars on the open market.
By comparison, the same amount would cost only 2.64 million dinars at the official government exchange rate, resulting in an additional expense of approximately 460,000 dinars ($350) for each traveler.
There has been no official announcement indicating when the sale of dollars at the government exchange rate will resume.
The suspension is not unprecedented. Over the past several years, Iraq's federal government has repeatedly halted the sale of dollars to travelers at the official rate, often citing shortages of foreign currency liquidity. Each suspension has disrupted travel plans and created financial difficulties for travelers and tourism companies alike, while increasing reliance on the parallel currency market.