Iraq, IMF wrap up economic talks

Shafaq News/ Iraq’s Finance Ministry announced on Sunday the conclusion of discussions with the International Monetary Fund (IMF), focusing on economic performance, financial reforms, and banking sector development.

The talks in Amman brought together senior Iraqi officials, including the Governor of the Central Bank (CBI), along with IMF representatives. Discussions covered Iraq’s economic outlook, fiscal policies, and financial stability. According to the Finance Ministry, non-oil GDP grew by 5% in 2024, driven by agricultural expansion and increased public spending, with growth expected to continue at 3.5% in 2025.

“The meetings allowed us to assess Iraq’s economic trajectory and reinforce our commitment to sustainable growth,” Finance Minister Taif Sami Mohammed said.

An IMF representative acknowledged Iraq’s progress in economic diversification but stressed the need for further reforms to ensure long-term stability. The discussions also focused on managing public debt, boosting investor confidence, and strengthening the banking sector to attract foreign capital.

Both sides agreed to expand cooperation with foreign correspondent banks, facilitate trade, and promote the use of the Iraqi dinar in major transactions. “Enhancing the role of the dinar in financial transactions will help stabilize the economy and reinforce confidence in the national currency,” the Central Bank Governor said.

Moreover, the IMF reaffirmed its commitment to supporting Iraq’s financial policies, offering advisory assistance on debt management and tax system improvements. “We remain dedicated to helping Iraq implement sound economic policies that foster investment and sustainable growth,” the IMF representative added.