Latest Updates on Iraq Economic Monetary Reform Completion 2024
Iraq has made significant strides in its economic and monetary reforms, with a focus on reducing oil dependence and enhancing fiscal sustainability. As of November 3, 2024, the country has achieved notable progress in several key areas, including banking reforms, non-oil revenue growth, and poverty reduction.
Banking Reforms and Financial Sector Modernization
Prime Minister Mohammed Shia Al-Sudani has emphasized the government's commitment to modernizing the financial sector and combatting money laundering. The Central Bank of Iraq (CBI) has completed 95% of banking transfers through an electronic platform, with the remaining 5% expected to be finalized by the end of 2024. This transition to a fully electronic system is a crucial step in aligning Iraqi banks with global standards and fostering a more robust investment environment.
Non-Oil Revenue Growth and Economic Diversification
The Iraqi government has made significant progress in diversifying its revenue sources. According to Prime Minister Al-Sudani, non-oil revenues have increased by 6%, and the poverty rate has decreased by 17.6%. These achievements are part of a broader strategy to reduce the country's reliance on oil and promote sustainable economic growth.
Fiscal Sustainability and Social Spending
Despite the challenges posed by oil price volatility, Iraq has taken steps to ensure fiscal sustainability. The International Monetary Fund (IMF) has recommended controlling the public wage bill and increasing non-oil tax revenues to protect critical social and investment spending. The government has also initiated reforms in the pension and electricity sectors to enhance efficiency and reduce fiscal burdens.
International Support and Cooperation
The United States Treasury Department has reaffirmed its support for Iraq's economic reforms, praising the country's rapid progress. US Deputy Treasury Secretary Wally Adeyemo highlighted the 6% economic growth rate and expressed readiness for further cooperation to advance economic development. This international support is crucial for Iraq's continued economic transformation.
Project Completion and Infrastructure Development
The Iraqi government has achieved 62% of its project targets across various sectors over the past two years, with a focus on infrastructure, wastewater treatment, and road and bridge projects. These projects have not only improved living conditions but also contributed to economic growth and job creation.
In conclusion, Iraq's economic and monetary reforms have seen significant progress in 2024, with a focus on reducing oil dependence, increasing non-oil revenue, and modernizing the financial sector. While challenges remain, the country's commitment to these reforms, coupled with international support, positions it well for continued economic growth and stability.
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