2024-01-17T06:01:15+00:00
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/ The World Bank expressed its support for the Iraqi government’s measures regarding the development of the banking sector, especially the electronic defense system that was recently adopted in the country.
This came during a meeting between Prime Minister Mohammed Shia al-Sudani, on the sidelines of his participation in the Davos Economic Forum, and the President of the World Bank Group, Ajay Banga, as announced by the federal government in a statement today, Wednesday.
The statement said that the meeting discussed cooperation relations between Iraq and the World Bank in various economic fields that contribute to supporting the government’s efforts and strategic plans towards more investment and development opportunities in Iraq.
According to the statement, the meeting also witnessed a review of the measures and steps taken by the government and the Central Bank of Iraq, in terms of financial and banking reform, and the projects financed by the International Finance Corporation (IFC) were also discussed, most notably the project to rehabilitate and develop Baghdad International Airport.
The statement added that the Prime Minister stressed the importance of the World Bank reports realistically reflecting the new government’s policies implemented in the economic and banking sectors and supporting the private sector, which aim to diversify the economy, increase its growth and achieve financial stability, in light of the challenges facing the region and the world.
For his part, Banga praised the government’s measures in the field of modernizing and developing the banking sector, stressing his support for these measures, especially with regard to implementing the electronic payment system, according to the statement.
The Iraqi government seeks to activate the electronic payment service, adopt modern automation systems, and end cash transactions.
Accordingly, the Oil Products Distribution Company, affiliated with the Iraqi Ministry of Oil, has set the end of next March as the final date for cash transactions at government and private fuel stations.
On January 7, Prime Minister Mohammed Shia al-Sudani directed citizens to avoid additional financial burdens resulting from commissions, during a meeting devoted to following up on the financial and economic transition to electronic payment, points of sale, and financial trading with electronic cards (POS).
Al-Sudani stressed, according to a statement issued by his media office, that the goal is to facilitate transactions and payment in all areas, while ensuring the highest levels of security.
Most markets and fuel stations lack POS devices, despite the Cabinet’s directives to implement the electronic payment system in government institutions, the private sector, commercial centers, shops, markets, and other entertainment facilities.
Citizens still lack the provision of POS devices and there are demands from the Central Bank, banks and electronic payment companies to provide POS points of sale and make them available to citizens to use with electronic cards for shopping and payment instead of cash.
The Central Bank of Iraq announced, at the beginning of last June, the entry into force of Cabinet Resolution No. (23044) for the year 2023, which is to increase the number of electronic payment devices (POS) in government institutions and the private sector to enhance the culture of electronic payment and collection, and reduce the use of paper money in collection and commercial transactions.
It is noteworthy that the Board of Directors of the Central Bank of Iraq decided on December 13 to establish the “National Company for Electronic Payment Systems” throughout the country, indicating that the company represents a qualitative development in the structure of the country’s financial infrastructure.
According to a statement by the Central Bank of Iraq, this step comes in conjunction with the rapid growth in electronic financial services and products and the increase in the number of users in line with the framework of the government program to support and adopt advanced electronic payment systems.