ERBIL, Kurdistan Region - The access to US dollars to travelers at the Central Bank of Iraq’s (CBI) official exchange rate is expected to resume soon at Erbil and Sulaimani airports after the central bank approved two companies to provide the service, Rudaw has learned. The CBI has so far approved two companies to supply travelers with dollars at the official rate at Erbil International Airport and Jalal Talabani International Airport in Sulaimani, according to a follow-up inquiry by Rudaw's Hastyar Qadir. The move comes after the CBI submitted a series of requirements to the Kurdistan Regional Government (KRG) on August 6 for the establishment of dollar-disbursement outlets at the Region’s airports. The KRG Representation in Baghdad forwarded the requirements to the Ministry of Transport and Communications on August 16. An informed source told Rudaw on Thursday that the CBI had requested the Kurdistan Region to designate their representatives to receive the dollars from the bank and transport them to the Kurdistan Region's airports “Both airports have now selected their representatives, and their information is scheduled to be officially sent to Baghdad soon via the KRG Representation,” the source said. The CBI sells dollars to banks and exchange companies for 1,310 Iraqi dinars, which then sell the dollars to travelers for 1,320 dinars. Travelers are currently eligible to purchase up to $2,000 at the official rate, subject to the central bank’s conditions. Because the service has not been available at airports in the Kurdistan Region, residents seeking to access dollars at the official rate have had to travel through airports elsewhere in Iraq. Travelers must have a confirmed flight ticket to qualify, while destinations covered by the program’s exclusions are not eligible. “If procedures continue to progress at this pace... the disbursement of dollars at Kurdistan Region airports is expected to resume within two weeks,” the source said. The resumption comes as the CBI has tightened access to subsidized dollars for travelers, reducing the frequency at which they can obtain the currency from once a month to twice a year. The new restriction took effect in September through the CBI’s electronic application system, according to sources in Iraq’s banking, airline and travel sectors. Under the revised procedure, travelers can obtain the official-rate dollars once every six months rather than monthly. The CBI also reduced the travelers’ dollar allowance in July from $3,000 to $2,000, citing efforts to promote electronic payments and ensure a fairer distribution of foreign currency. The changes come amid heightened pressure on the Iraqi dinar, which has continued to depreciate against the US dollar in local markets. The dollar approached 1,600 dinars last week, while the CBI said it had sufficient foreign reserves to meet demand. RELATED: CBI limits traveler access to official-rate dollars twice yearly
