The currency of Iraq is the Dinar (IQD - sometimes referred to as the New Iraqi Dinar). The Iraqi currency is fully convertible and can be exchanged freely with any other currency. The new investment law allows investors to bank and transfer capital inside or outside of Iraq, which provides considerable flexibility for foreign investors.
The Government of Iraq's monetary policy since 2003 has focused on maintaining price stability and a stable exchange rate. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes. The Central Bank of Iraq (CBI) can intervene, when necessary, in order to maintain stability in the foreign exchange market. There are no taxes or subsidies on purchases or sales of foreign exchange.
Performance Requirements And Incentives
The new GOI investment law allows both domestic and foreign investors to qualify for incentives equally. It also allows for investors to take out capital brought into Iraq and its proceeds in accordance with the law. Foreign investors are able to exchange shares and bonds listed on the Iraqi Stock Exchange. The new law also allows investors who have obtained an investment license to enjoy exemptions from taxes and fees for a period of ten years. Hotels, tourist institutions, hospitals, health institutions, rehabilitation centers and scientific organizations also are granted additional exemptions from duties and taxes on their imports of furniture and other furnishings.
The exemption increases to fifteen years if the Iraqi investor share is more than fifty percent of the project.