An integrated digital economy in Iraq next year

The Prime Minister’s financial and economic advisor, Mazhar Mohammed Salih, stressed the importance of the Central Bank of Iraq’s announcement that cash payments will be phased out in all government institutions and other facilities in July 2026.

The Central Bank made a statement reported by Al-Sabah newspaper the day before yesterday, confirming the farewell to paper transactions in July of next year.

In a press interview, Saleh said that 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 represent a change in payment methods, but rather the beginning of a new era of financial modernity in the country.

Saleh believes that, 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 taxes 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.

The advisor pointed out that this 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.

Alsabaah.iq