Iraq Economic News And Points To Ponder Monday Afternoon 6-9-25

Cash Payments Are Banned At Government Institutions Starting This Date. Details

Political |  09/06/2025   Mawazine News - Baghdad - Prime Minister's advisor, Saleh Salman, announced on Monday a ban on cash payments at government institutions starting next month, while indicating that reforms will be implemented in the private banking sector.

Salman said in a statement to the official agency, followed by Mawazine News: "The Iraqi government has appointed Ernst & Young to restructure 6-7 state-owned banks in the country, including the Industrial Bank, the Real Estate Bank, Rafidain Bank, and Rashid Bank."

He indicated that "the Trade Bank of Iraq (TBI) has signed a separate contract with K2i and KPMG to help restructure its internal and external operations to meet international standards."

He added that "Rafidain Bank, which is the largest government institution in Iraq, will be transformed into the First Rafidain Bank, with the government's participation reduced to less than 24 percent, as the remaining shares will be offered to private banks and international investors." He expected that "the restructuring plan will be completed and approved by the Iraqi government by the end of the year."

He continued, "The private banking sector will undergo reforms following the signing of a contract between the Central Bank of Iraq and Oliver Wyman." He explained that "the results of this two-to-three-year project will yield recommendations for private banks to either exit the sector, comply with international standards, or merge with other institutions."

Regarding electronic payments, Salman emphasized that "Iraq has made significant progress in adopting electronic payment systems, with the financial inclusion rate increasing from less than 10 percent in 2018-2019 to approximately 40 percent currently." He noted that "the number of point-of-sale devices has reached 60,000-70,000, while the number of bank accounts has increased to 22-23 million."

He explained that "starting July 2025, all government payments will be conducted electronically, prohibiting cash payments through government institutions." He noted that "the government has launched awareness campaigns to encourage the public to adopt electronic payment systems and move away from the traditional cash-based culture."

He emphasized that "the government has introduced the 'Riyada' program in partnership with the Central Bank." To provide financing and training for small and medium-sized enterprises," he explained, adding that "this program provides a registration platform through which participants can access training and potential financing opportunities."

He pointed out that "Iraq will remain open to foreign investment and international advisory services in all sectors, including legal, financial, accounting, auditing, and compliance services," indicating that "government reforms aim to integrate Iraqi banks into the global financial system after decades of isolation due to sanctions and frozen assets."

He pointed out that "since November 2022, all bank transfers in Iraq have been processed through the Central Bank's platform in cooperation with the US Federal Reserve, representing Iraq's re-entry into global financial systems," noting that "the country now cooperates with approximately 30 foreign banks."

He explained that "challenges still exist in opening international banking relations," stressing that "comprehensive banking reforms represent a major shift toward international standards and increased private sector participation in the Iraqi financial sector." https://www.mawazin.net/Details.aspx?jimare=262323

Iraq Joins The Club Of Advanced Countries In Electronic Payments With 22 Million Bank Cards.

2025/06/09 Reading: 750 times  {Economic: Al Furat News} Nabil Al Najjar, head of the electronic payments team, announced that Iraq has become one of the most advanced countries in this field, thanks to decisive government decisions and support from the Central Bank and the financial sector. He noted that the number of bank cards has exceeded 22 million, and that their usage is constantly increasing, with intensive efforts to deploy electronic payment devices throughout the country.

Al-Najjar said in a press statement, "The electronic payment project was not a spur-of-the-moment project. Rather, it was the result of prior preparations that paved the way for Iraq's advancement in this field, despite its late entry, like the rest of the world. However, today we are among the advanced countries that use electronic payment tools."

He explained that the success of this project depended on two key factors: desire and decision-making, adding, "The government's desire came in 2023, specifically on January 18, with a decision to transform Iraq's economic front from a paper-based cash system to an electronic payments system. Thus, we began gradually."

He pointed out that the first experiment to impose the use of electronic payment was at gas stations, saying, "The first experiment was on a single day in June 2023, regarding the issue of forcing gas stations to use electronic payment tools. We certainly encountered problems at first. The project is new and faces many challenges."

He pointed out that "the will was vested in the Central Bank of Iraq and the financial sector as a whole—banks and electronic payment companies, which have contributed significantly to shifting the economy from cash to cashless."

He continued: "The number of cards, according to the statistics available to us, has exceeded 22 million, and thus this number is constantly increasing. The coming days will witness a higher rate of increase, given that on July 1, cash will no longer be accepted at all state institutions. While cash is currently available, it will be available in its entirety, including at gas stations."

Regarding card usage, Al-Najjar explained that "the number of cards in use exceeds 17 to 18 million, and the situation is on the rise. We're talking about more than 40% of citizens using electronic payment tools, and the coming days will witness further change."

He added, "Most citizens own more than one card from more than one company and more than one bank. Their use is limited, and some only use them at government institutions. We need to educate more about the use of these cards in commercial markets and shops. This issue falls on us to raise awareness about the culture of electronic payment."

In this context, Al-Najjar announced a new campaign to spread the culture of electronic payment, saying, "I announce that the "We Will Reach You" campaign, which was launched on January 11, 2025, will be available in the coming days, at the beginning of next month or the end of this month. We will be present in the Kurdistan Region to spread the culture of electronic payment widely."

He explained that Iraq is striving to achieve global standards in this field, saying, "The global system speaks of one POS device for every 37 citizens. Today, in Iraq, we are striving to reach this point by deploying POS devices in shops, large and small markets, and even among kiosk owners."

He pointed out that "electronic payment companies are trying to make these devices available and encourage their use by citizens through loyalty programs launched by companies and banking institutions."

Regarding the situation in the Kurdistan Region, Al-Najjar said: "Today, the Kurdistan Region has entered the localization phase, so the POS deployment phases will be faster and more acceptable to the public, given that they have already gone through this experience in previous phases, but today it is becoming widespread."

He explained that the devices are often distributed free of charge, and that sometimes a small insurance fee of no more than 200,000 to 300,000 dinars is imposed, which is refunded when the device is returned without defects.

Al-Najjar considered Halabja Governorate to represent a strategic launch for the "We Reach You" campaign, explaining: "Today, Halabja Governorate is a new Iraqi governorate. We used to have 18 governorates, now we have 19. Therefore, our people in the Kurdistan Region have a significant share of the electronic payment culture."

He continued: "Choosing Halabja Governorate to launch the "We Will Reach You" campaign from this governorate is a move towards the Kurdistan Region, and also the northern regions of Iraq. I mean here the areas bordering the Kurdistan Region: Mosul, Kirkuk, Salah al-Din, and also the other governorates."

Al-Najjar confirmed that this campaign is being directly sponsored by the Central Bank of Iraq and supported by several financial institutions, including the Bank of Baghdad, the Development Bank, Arab Bank, K-Card, Rafidain Bank, Al-Saqi Bank, Bank of the South, Amwal Bank, Al-Ahli Bank, and others.

He concluded his remarks by pointing out that "banking financial institutions and electronic payment companies are sparing no effort to motivate citizens through loyalty programs, under the direct supervision of the Central Bank of Iraq, the Payments Department, the Financial Inclusion Division, and other relevant departments, with the goal of delivering financial services directly to citizens." LINK

Stability Of The Dollar Exchange Rate In The Local Market

Monday, June 9, 2025, | Economic Number of reads: 261   Baghdad/ NINA / The dollar exchange rates witnessed stability in the local markets in the capital, Baghdad, on Monday.

The selling price in Baghdad was recorded at 142,000 Iraqi dinars for every 100 US dollars, while the purchase price was 141,000 Iraqi dinars.

In Erbil, the selling price was recorded at 141,750 dinars for every 100 US dollars, while the purchase price was 141,500 dinars.

In Basra Governorate, the selling price of the dollar was recorded at 141,750 dinars, while the purchase price was recorded at 141,250 dinars, for every 100 US dollars./End https://ninanews.com/Website/News/Details?key=1233397

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