Iraq Government Institutions to Go Cashless in July

Beginning July 2025, Iraq will prohibit cash transactions in all government institutions to drive electronic payment adoption and modernize its financial system.

With over 22 million bank accounts now active, the government has contracted an international firm to restructure six state-owned banks to meet international standards.

Despite this progress, Iraq’s banking sector remains burdened by outdated deposit protections, withdrawal limits, and corruption, with 90% of currency still held outside formal channels.

Growing interest in digital banking is hampered by underdeveloped infrastructure and regulatory gaps, leading many Iraqis to revert e-salaries into cash.

The upcoming cash ban is designed to overcome these hurdles and usher Iraq toward a robust digital economy.