Starting Tomorrow, Payment Cards From These Banks Will Be Suspended Abroad

 
Economy     2025-05-31 | 07:22  16,893 views  Alsumaria News – Economic  Economic expert Munar al-Obaidi confirmed on Saturday that a large number of electronic payment cards issued by Iraqi banks will no longer work outside Iraq as of June 1. 

This is  due to changes in the mechanisms used to enhance the  balances of these cards with global companies such as Visa and Mastercard.  told Al-Obaidi Sumaria News,
 
"Cards belonging to government banks will continue to operate normally, and  cards belonging to private banks that have accounts with US correspondent banks outside the country will remain active."  

He added, "The problem lies with cards issued by banks that do not have accounts with US banks, as
they are currently unable to top up their card balances, which leads to the cessation of their operations abroad." 

 Al-Obaidi pointed out that "the Central Bank of Iraq is currently working on activating a temporary mechanism in cooperation with the Trade Bank of Iraq (TBI) to strengthen the balances of these banks until they open accounts in American banks," stressing that  "the final solution will come when these banks complete their procedures with their correspondent banks in the United States." 

  According to Al-Obaidi, What's going on?  
 
"Since the end of 2022, payment cards have become one of the tools used to expel foreign currency from Iraq, especially given the price gap between the parallel market and the official dollar exchange rate, which has put significant pressure on foreign exchange reserves." 

According to the expert, estimates indicate that "foreign spending via cards has reached approximately $10-12 billion annually, a significant figure that has directly impacted the currency market."  

Central Bank Decision
 
Under pressure from this, the Central Bank of Iraq decided to amend its operating procedures.
 
Iraqi banks are now required to replenish their card balances in dollars exclusively through US correspondent banks, to ensure transparency and monitor the flow of funds.
 
However, because many private banks do not currently have such accounts, their cards will not be valid outside Iraq until further notice.  

Al-Abidi confirmed that  Is there a solution soon?

"banks are working to open accounts with US correspondent banks, but until that happens, the problem will remain."
 
He called on citizens to "verify the type of card and the issuing bank, especially for those who rely on it for travel or online shopping abroad."  
  
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