The Central Bank of Iraq’s Governor, Ali Mohsen Al-Alaq, used the opening of the ninth Finance and Banking Services Exhibition and Conference to highlight progress in electronic payments and to set out a forward agenda for Iraq’s banking digitalisation, including work toward a central bank digital currency and a domestic data centre. He cited expansion in the electronic payment system through a higher number of ATMs and credit wallets, and attributed a rise in financial inclusion to 40%, from 20% around two years ago, to Central Bank support. The speech also pointed to changes in banks’ operations, particularly foreign-currency transfers supported by approved international systems and programmes, and described “future banks” as smart digital platforms issuing digital financial identities. Al-Alaq said paper currency is expected to decline in favour of digital payments and that the Central Bank is moving to create a digital currency to gradually replace paper currency, alongside steps to establish a data centre in Iraq to support the digital economy, artificial intelligence, applications, big data analytics and internet services, and he called for a comprehensive national vision for digital transformation.
Central Bank of Iraq 2025-02-26
Central Bank of Iraq governor outlines steps toward a national digital currency as financial inclusion rises to 40%
The Central Bank of Iraq's Governor, Ali Mohsen Al-Alaq, announced advancements in electronic payments and outlined plans for banking digitalisation, including a central bank digital currency and a domestic data centre, at the ninth Finance and Banking Services Exhibition and Conference. He noted a rise in financial inclusion to 40% and emphasized the shift towards digital payments and smart digital platforms.