Spending Smart in Iraq: A Quick Guide to the Dinar

Traveling to Iraq isn’t on most people’s bucket lists – but for those who want to go, it’s gonna be an unforgettable journey. And that means you’ll need to get friendly with the Iraqi Dinar.

If you’ve never dealt with dinars before, don’t worry – it’s not as overwhelming as it sounds. But understanding how far your money goes, where to exchange it, and how much to carry will make your trip smoother, safer, and cheaper.

First Things First: What Is the Iraqi Dinar?

The Iraqi Dinar (IQD) is the official currency of Iraq. At the time of writing, the exchange rate hovers around 1,300 IQD per US dollar, though this can vary slightly depending on where you exchange your money. It’s a good idea to check the current rate with a reliable source like a currency app or the Central Bank of Iraq before traveling.

Denominations include both coins and notes, though banknotes are far more common. You’ll find bills ranging from 250 dinars up to 50,000 dinars – and yes, it’s easy to mix up a 5,000 with a 50,000 if you’re not careful. Always double-check what’s in your hand.

Where to Get Your Dinars

Unlike some countries where you can just pull out cash at the airport or rely on cards, Iraq is largely a cash economy – especially for travelers.

Here’s where and how you can get Iraqi Dinars:

• Currency exchange offices: Found at airports, hotels, and in major cities like Baghdad, Erbil, and Basra. These usually offer better rates than banks.

• Local banks: Safe but often slower and more formal. Not always the best option for tourists.

• ATMs: Increasingly available in larger cities, but they’re not always reliable, especially outside the Kurdistan Region. Some foreign cards may not work.

Pro tip: Bring crisp USD bills to exchange – $100 notes are best and are more widely accepted. Avoid old or damaged notes, as they may be rejected.

How Much Cash Should You Carry?

One of the most common questions I asked before traveling to Iraq was: “How much money do I actually need each day?” The answer really depends on how you travel, but in general, Iraq is surprisingly affordable – especially if you’re sticking to local food and transportation.

Here’s a look at what things typically cost for travelers:

• Street food meal: 2,000–5,000 IQD ($1.50–$4)

• Mid-range restaurant dinner: 10,000–20,000 IQD ($7–$15)

• Shared taxi within city: 1,000–3,000 IQD (<$2)

• Basic guesthouse/night: 25,000–50,000 IQD ($18–$35)

• Bottle of water: 500–1,000 IQD (<$1)

• Entry to heritage sites: 5,000–10,000 IQD ($4–$8)

These numbers might shift a bit between Baghdad, Basra, and Erbil, but they give a solid idea of how far your money can go. If you’re budgeting around $30 – 50 per day, you’ll have enough for food, lodging, and even a few treats along the way.

Souvenirs, Snacks, and the Unexpected

When it comes to shopping, you’ll be amazed by how far 10,000 dinars can go. Some ideas:

• Spices, soaps, and sweets from local bazaars

• Postcards and calligraphy prints from cultural centers

• Traditional tea sets or small crafts for under 15,000 IQD

• Bags of dates or nuts for snacks or gifts

Try to ask for the price first, and don’t be afraid to walk away – vendors often lower their prices once they see you’re serious.

Bargaining, Tipping, and Other Money Etiquette

Like much of the Middle East, bargaining is common in markets and with taxis, especially in cities like Baghdad or Mosul. Don’t be shy – just stay respectful. A smile and a bit of patience go a long way.

Tipping (called baksheesh) is also part of the culture. While it’s not mandatory, small tips (1,000–2,000 IQD) are appreciated in restaurants, by drivers, or hotel staff. For longer tours, consider tipping your guide or driver more generously.

Pro Tip: Always carry small bills. Breaking a 25,000 note at a street stall can be difficult.

Card Payments and Digital Wallets

Card payments are extremely rare, especially outside international hotels or upscale restaurants. Even in Erbil or Baghdad, cash is king. Most small shops, cafés, and even some hotels simply don’t have the infrastructure to process card payments.

Mobile payments and digital wallets? Not yet mainstream. While some younger locals may use banking apps or QR codes in urban areas, tourists won’t find much support for these systems. Stick to physical cash and don’t rely on cards working for everyday transactions – it’s safer to assume you’ll need dinars for just about everything.

Currency Safety and Travel Tips

Handling cash in a place that runs almost entirely on it takes a little extra thought. In Iraq, most locals are used to carrying bills daily, but as a traveler, it’s worth taking a few simple precautions to keep your money safe and your mind at ease.

Here’s what to keep in mind:

• Don’t flash large bills in public. Use smaller denominations for quick transactions.

• Avoid street money changers, especially near borders. Stick to reputable exchange offices.

• Use a money belt or keep cash spread between your wallet, bag, and luggage for safety.

• Keep emergency USD in case you can’t access dinars or need to exchange fast.

These tips might sound basic, but they make a huge difference – especially when you’re in a crowded market or dealing with power outages that knock out ATMs. A little planning goes a long way toward making sure your trip runs smoothly, and your money stays right where it should be.

How Locals Handle Their Dinar

Locals are very familiar with the dinar, often using it alongside USD in some areas. In the Kurdistan Region, prices are occasionally quoted in dollars for hotels or tours, but daily life still runs on dinars. People are used to the zeros – and so will you be after a day or two.

In some parts of the country, locals even say “thousands” differently – like saying “five” to mean “5,000 dinars.” Context matters.

Why It’s Worth Learning the Dinar

Understanding the Iraqi Dinar may seem like a small part of your trip, but it opens up a much richer experience. You’ll get better deals, connect more easily with locals, and avoid unnecessary stress when small daily decisions – like whether a taxi price is fair – come up.

It’s not just about saving money. It’s about traveling smarter.