World Bank expresses support for Iraq's banking sector development and electronic payment system
Shafaq News / During a meeting at the sidelines of the Davos Economic Forum, Iraqi Prime Minister Mohammed Shia Al-Sudani and World Bank Group President, Ajay Banga, discussed their cooperation in various economic sectors. The World Bank expressed its support for the Iraqi government's initiatives, particularly the recently adopted electronic payment system.
The meeting addressed the collaboration between Iraq and the World Bank across economic sectors, contributing to supporting the government's efforts and strategic plans for increased investment and development in Iraq. The discussions also reviewed measures taken by the government and the Central Bank of Iraq (CBI) in financial and banking reforms, including projects funded by the International Finance Corporation (IFC), notably the rehabilitation and development of Baghdad International Airport.
Prime Minister Al-Sudani emphasized the importance of realistic reports from the World Bank reflecting the policies of the new government implemented in economic and banking sectors, as well as support for the private sector. These policies aim to diversify the economy, boost growth, and achieve financial stability amid regional and global challenges.
Banga commended the government's actions in updating and developing the banking sector, expressing support for these measures, especially regarding the implementation of the electronic payment system. The Iraqi government seeks to activate electronic payment services, adopt modern automation systems, and phase out cash transactions.
In line with these objectives, the state-owned oil product distribution company under the Ministry of Oil set the end of March as the final date for cash transactions at government and private fuel stations. This move aligns with the Prime Minister's directive to spare citizens additional financial burdens related to commissions during the transition to electronic payments and financial transactions through Electronic Payment Systems (POS) cards.
CBI announced the implementation of Cabinet Decision No. 23044 for 2023, effective at the beginning of June, aimed at increasing the number of electronic payment (POS) devices in government institutions and the private sector. The goal is to enhance the culture of electronic payment and collection, reducing the use of paper currency in revenue collection and commercial transactions.
The establishment of the "National Electronic Payment Systems Company" in Iraq was announced by the Central Bank in December. This step represents a qualitative development in the country's financial infrastructure, aligning with the rapid growth in electronic financial services and products, and the increasing number of users, in line with the government's program to support and adopt advanced electronic payment systems.
