In an effort to bolster electronic payment systems and alleviate financial strains on citizens, Iraq's Central Bank Governor, Ali Mohsen al-Alaq, commended the strides made by the "electronic collection" banking project. Al-Alaq emphasized that this initiative facilitates swifter fund disbursements to the populace while fortifying government resources through a reliable and transparent platform.

The project, endorsed by Prime Minister Mohammed Shia’ al-Sudani, underscores a concerted push towards an e-economy, pivotal in mitigating the instability of the Iraqi dinar. By transitioning from traditional paper-based transactions to electronic platforms, the government aims to curb cash transactions, expedite payment processes, and lighten the financial burden on citizens.

Key to this endeavor is the automation of collection processes and the adoption of electronic payment tools. Notably, civil servants, including over 300,000 individuals in the Ministry of Labor and Social Affairs, now receive their salaries through electronic means, marking a significant shift in financial management.

Governor Al-Alaq hailed the launch of the electronic collection project as a pivotal step towards revitalizing electronic payment systems. He underscored its success as a crucial milestone in curbing the cash economy, emphasizing the manifold benefits such as time and cost savings, labor reduction, and heightened security.

Looking ahead, the Iraqi government aims to fully integrate electronic financial transactions within government institutions by 2024. This decision is motivated by a resolve to combat money laundering and the illicit smuggling of dollars, which have contributed to the depreciation of the Iraqi dinar against the US dollar in recent months, leading to a spike in commodity prices and public discontent.

As the Iraqi government presses forward with its digitalization agenda, the electronic collection project stands as a beacon of progress in modernizing the country's financial infrastructure and fostering economic stability in the face of prevailing challenges.