DUBAI, UAE - Iraq’s Central Bank said Sunday that the country plans to end cash payments in government institutions by July 2026, as part of a nationwide shift to electronic payments. 

“Iraq will completely eliminate cash transactions in state institutions and other facilities by July of next year,” Dhurgham Musa, director of supervision over non-banking financial institutions at the Central Bank of Iraq (CBI), told the state newspaper.

The plan is being carried out under the direct supervision of Prime Minister Mohammed Shia’ al-Sudani and other government ministries, according to Musa, adding that trillions of dinars have already been paid electronically and the interior ministry has completely halted the use of cash.

Musa called the progress “excellent,” asserting that the goal is to end cash in all state ministries by the deadline and that several initiatives are underway to encourage more government institutions to adopt digital payment systems.

Iraq’s banking system suffers from rampant corruption, with most citizens reluctant to keep their capital in banks and opting to retain cash at home. 

Iraqi financial officials have repeatedly called on citizens to place greater trust in the banking system and deposit their savings in banks.