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Iraq Takes Steps to Boost Financial Inclusion with New Regulatory Frameworks

Banking on Progress: Central Bank of Iraq Implements National Financial Inclusion Strategy

Baghdad, IRAQ - The Central Bank of Iraq (CBI) has made significant strides in promoting financial inclusion across the country. Under the guidance of Governor Mustafa Ghaleb, the CBI has developed a comprehensive national financial inclusion strategy, driven by membership in the Alliance for Financial Inclusion (AFI).

Key Initiatives and Regulatory Frameworks

  • Establishment of Supreme Committee for Financial Inclusion: A public-private committee comprising stakeholders from various sectors to foster growth and development.
  • Data Collection and Awareness-Raising Campaigns: The CBI has implemented projects to collect data indicators on bank account ownership and electronic payment tool usage, as well as conducted awareness-raising campaigns to enhance financial literacy and protect consumers.
  • Regulatory Frameworks for Payment Service Providers: The central bank has defined rules for licensing payment service providers and their agents, promoting digital financial services and regulating the governance of information and communication technology in the financial sector.

Modernizing Payment Systems

  • National Switch, Data Centers, and Disaster Recovery Centers: Established to support modern payment systems and ensure business continuity.
  • Infrastructure Development for Information and Communication Technology (ICT): The CBI has developed infrastructure for ICT in line with international best practices to support the growth of digital financial services.

Enhancing Cross-Border Payments

  • Membership in Buna Payment Platform: Iraq has joined the Buna payment platform, providing real-time settlement services for Arab and international currencies.
  • Regulation of Overseas Transfers: The central bank has signed a memorandum of understanding with money transfer companies Western Union and MoneyGram to regulate overseas transfers through their agents in Iraq.

Future Plans

  • Application of Financial Technologies: The CBI is taking steps to apply financial technologies in the financial and banking sectors according to international standards.
  • Supporting Digital Financial Services: A key objective of CBI’s strategic plan for 2021-2023 is to support digital financial services that contribute to enhancing financial inclusion.

Governor Ghaleb emphasized that Iraq remains committed to promoting greater financial inclusion, particularly among excluded groups such as youth, forcibly displaced people, small businesses, and women. The central bank’s membership in AFI will support its efforts to strengthen relevant policies and regulation for the benefit of future generations.