IMF Discusses Strengthening Iraqi Dinar

 Iraq's delegation concluded its meetings with the International Monetary Fund (IMF) in Amman (February 24-26), with participants including Minister of Finance Taif Sami and the Governor of the Central Bank of Iraq (CBI).

Discussions focused on Iraq's economic performance and sustainable growth prospects, with the IMF acknowledging the progress made.

Key discussions included:

• Non-oil GDP growth of 5% in 2024, driven by agriculture expansion and increased public spending, with 3.5% growth expected in 2025.
• Reduced dependence on oil revenues, improving economic diversification and stability.
• Review of actual 2024 expenditures and 2025 revenue forecasts, alongside strategies for deficit financing.
• Public debt strategy update, ensuring fiscal sustainability and investor confidence in government bonds.
• Financial sector reforms, with the IMF stressing the importance of banking modernization to attract foreign capital.
• Expanded collaboration with international correspondent banks to facilitate trade financing.
• Increased use of the Iraqi dinar in major transactions to strengthen the national currency.

The IMF reaffirmed its support for Iraq's financial policy development, offering advisors and experts to assist the Ministry of Finance in public debt management and tax system improvements.

The meetings underscored Iraq's commitment to fiscal reforms, promoting economic stability and investment-friendly policies, in line with its strategic partnership with the IMF.