Iraq’s Digital Finance Leap Earns World Bank Praise
▼ Summary
– The World Bank praised Iraq for rapid progress in electronic payments and financial inclusion, with officials noting sharp increases in bank cards and payment devices.
– Electronic transactions in Iraq reached two trillion dinars ($1.52 billion) in August 2024, and debit/credit cards surged to 20 million, covering nearly half the population.
– Financial inclusion in Iraq has risen to over 40%, up from 20% three years ago, due to reforms promoting mobile e-wallets for payments and transfers.
– Iraq’s e-payment network is now connected to international systems, allowing Iraqi cards to be used abroad and foreign cards to be accepted locally.
– The Central Bank of Iraq considers digitized banking services central to its digital transformation strategy, with electronic payments driving efficiency, accessibility, and global integration.
Iraq’s remarkable strides in digital finance have drawn significant praise from the World Bank, marking a pivotal moment in the nation’s economic modernization efforts. The country’s rapid expansion of electronic payment systems and financial inclusion initiatives demonstrates a clear commitment to transforming its banking sector. According to Saleh Mahoud, who serves as the Prime Minister’s Advisor for Banking Affairs, international recognition has followed tangible achievements on the ground.
Recent data reveals the impressive scale of this digital transformation. During August 2024, electronic transactions in Iraq surpassed two trillion dinars, equivalent to approximately $1.52 billion. The proliferation of payment cards has been equally striking, with twenty million debit and credit cards now in circulation. This figure represents nearly half of Iraq’s population, with many citizens holding multiple cards as digital payments become increasingly normalized in daily life.
Central Bank of Iraq Governor Ali Al-Alaq provided context for these developments, noting that financial inclusion rates have more than doubled within just three years. From a baseline of twenty percent, the country has now achieved financial inclusion for over forty percent of its population. This dramatic improvement stems largely from comprehensive reforms that have promoted mobile e-wallets for both payments and money transfers. The infrastructure supporting this expansion includes more than four thousand operational ATMs and seventeen million active bank cards throughout the nation.
A particularly significant milestone in Iraq’s financial evolution has been the integration of its electronic payment network with international systems. This connectivity allows Iraqi-issued payment cards to function seamlessly abroad while simultaneously enabling foreign-issued cards to be accepted within Iraq’s domestic market. The Central Bank of Iraq considers these digitized banking services fundamental to its broader digital transformation strategy. Electronic payments are viewed as crucial drivers of enhanced efficiency, improved financial accessibility, and deeper global economic integration for the Iraqi economy.
(Source: MEA Tech Watch)
