Methods of Payment

The preferred method of payment in Iraq is via letters of credit, as it ensures that both parties can guarantee their rights in the shipment.  Cash payment through wire transfer is also possible but not recommended unless the buyer and seller have an established relationship.  Visa and MasterCard are more commonly accepted in shops and for online purchases.

Banking System

The Iraqi banking system includes 68 private banks and seven state-owned banks.  As of early 2020, 20 foreign banks have licensed branches in Iraq and several others have strategic investments in Iraqi banks.  The three largest banks in Iraq are Rafidain Bank, Rasheed Bank, and the Trade Bank of Iraq (TBI), all three of which are state-owned and account for roughly 85 percent of Iraq’s banking sector assets.  Iraq’s economy remains primarily cash based, with fewer than 20 percent of Iraqis holding bank accounts, and most banks acting as little more than exchange houses and ATMs.  Rafidain and Rasheed offer standard banking products but primarily provide pension and government salary payments to individual Iraqis.

U.S. Banks and Local Correspondent Banks

Currently, there is one U.S. bank operating in Iraq.

Exchange Rate Controls

Iraq does not currently have exchange rate controls.