Central Bank of Iraq Governor Ali Al-Allaq said the country’s exchange rate remains stable and will not change, dismissing concerns over currency fluctuations.

Speaking during remarks carried by local media, Al-Allaq said Iraq faces no issues regarding its gold or foreign currency reserves and will continue injecting U.S. dollars into the market to maintain liquidity.
“We are not facing any problem with gold or foreign currency reserves, and we will continue supplying dollars,” he said.

Push for Financial Modernization

Al-Allaq stressed that excessive reliance on cash transactions is no longer consistent with the requirements of a modern economy.

He said building an advanced financial system requires secure, fast and transparent electronic platforms. The expansion of electronic payment systems, he added, has facilitated daily transactions and reduced time and effort for citizens and businesses.

The Central Bank has accelerated digital payment reforms in recent years as part of broader efforts to strengthen financial inclusion and reduce informal cash circulation.

Coordination With the Kurdistan Regional Government

Al-Allaq also highlighted the importance of cooperation with the Kurdistan Regional Government (KRG) to unify financial systems and expand digital services.

He described financial integration with the Kurdistan Region as a cornerstone of sustainable development, emphasizing the need for harmonized banking and payment infrastructure.

He pointed to the “E-Psule” application as a practical model of integration between the public and private sectors, without elaborating on technical details.

Support for Nationwide Financial Reform

The governor said the Central Bank supports initiatives aimed at modernizing financial services across all Iraqi provinces.

He added that a comprehensive electronic payment ecosystem is essential to improving economic efficiency, strengthening transparency and enhancing financial performance.
The comments come as Iraq continues efforts to stabilize its currency markets, diversify financial tools and reduce dependence on cash-based transactions.