Why do Pilgrims in Iraq Need U.S. Dollars? Limit of $2,000 per Pilgrim

Great question—the pilgrims don’t need U.S. dollars in Iraq but rather for traveling abroad, especially for religious pilgrimages to places like Saudi Arabia for the Hajj or Umrah, or to Iran and other countries for regional pilgrimages.

Here’s why U.S. dollars are needed:

1. Foreign Travel Requirements:
   Most international destinations do not accept the Iraqi dinar. Travelers, including pilgrims, must convert their money into a widely accepted foreign currency—and the U.S. dollar is the most trusted and globally accepted.

2. Booking and Expenses Abroad:
   Pilgrims need dollars for accommodations, food, transportation, and visa fees while abroad. Travel agencies, airlines, and hotels often demand payment in U.S. dollars or local currency converted from dollars.

3. Currency Stability and Regulation:
   The Central Bank of Iraq regulates the foreign currency market to prevent black-market inflation and ensure a fair, official exchange rate. That’s why it approves certain banks, like Al-Rafidain, to handle dollar distribution before major travel periods, such as the pilgrimage season.

In summary, the pilgrims need U.S. dollars not for use within Iraq but to handle all their international travel expenses in countries where the dinar is not accepted.

Pilgrims Praise Al-Rafidain Bank for Smooth Dollar Exchange Process

Customers praise Al-Rafidain Bank's smooth, well-organized process of distributing U.S. dollars to Iraqi pilgrims. The state-owned bank is issuing $2,000 per pilgrim at the official exchange rate of 1,320 Iraqi dinars to the dollar, as set by the Central Bank of Iraq (CBI).

According to the bank, the entire process has been running efficiently and without issues. This success is credited to a team of well-trained staff and advanced technical systems at the branches. Pilgrims have especially noted the professionalism, kindness, and respectful service provided by the bank employees, calling the atmosphere welcoming and the service top-tier.

Al-Rafidain Bank opened select branches early on both Friday and Saturday to accommodate travelers, ensuring pilgrims could access their dollars in time for their journeys.

This initiative comes shortly after the CBI released an official list of banks authorized to handle dinar-to-dollar conversions—part of a broader effort to streamline and regulate foreign currency access for Iraqi citizens.