Reducing corruption and enhancing transparency… an integrated digital economy in Iraq next year
Reducing corruption and enhancing transparency… an integrated digital economy in Iraq next year
2025-09-23 02:18
Shafaq News – Baghdad
The financial and economic advisor to the Prime Minister, Mazhar Mohammed Salih, revealed on Tuesday the importance of the Central Bank of Iraq’s announcement to end cash payments in all government institutions and other facilities in July 2026.
Saleh told Shafaq News Agency, “Iraq’s farewell to cash payments in 2026 represents a major strategic step toward building an integrated digital economy that reduces corruption, enhances transparency, and encourages financial inclusion. This shift will not simply be a change in payment methods, but rather the beginning of a new era of financial modernity in the country.”
According to him, in terms of fiscal policy, this shift will facilitate total government payments, including salaries, pensions, loans, and support, as well as the collection of wages, fees, and government tax collections, through faster and more accurate digital channels, all of which will enhance the liquidity and governance of the general budget.
Saleh added that this step strengthens the unified treasury account and the cash flow account for public finances, reducing the chances of emergency government borrowing. Regarding monetary policy, it strengthens the close monitoring of capital flows, giving the Central Bank better tools to control inflation rates and liquidity simultaneously.
He continued, “We must not forget that such a shift will encourage citizens to embrace a culture of electronic payments and encourage unbanked individuals to join the banking system, expanding the financial customer base, expanding the scope of financial inclusion and reducing the cost of cash transactions.”
Last year, the Governor of the Central Bank of Iraq announced a record increase in electronic payments, from 800 billion to 2 trillion dinars in one year, noting that government payments reached 912 billion dinars.
The Iraqi government decided to ban cash payments at government institutions starting in early July, adopting all government payments electronically. In this effort, awareness campaigns were launched to encourage the adoption of electronic payment systems and move away from the traditional cash-based culture.
shafaq.com
