Analysis of the initiatives undertaken by the Central Bank of Iraq to enhance financial inclusion in the Economy

Abstract

Financial inclusion is a critical pillar for sustainable economic development, particularly in emerging and post-conflict economies such as Iraq. This study analyzes the initiatives undertaken by the Central Bank of Iraq (CBI) to enhance financial inclusion across diverse demographic groups and geographic regions. The research examines policy frameworks, regulatory reforms, digital financial services, financial literacy programs, and targeted interventions aimed at underserved populations, including women, youth, small and medium-sized enterprises (SMEs), and residents of rural and remote areas. Special emphasis is placed on the National Financial Inclusion Strategy (2025–2029) as a guiding framework for coordinated action. Using a qualitative analytical approach based on official reports, international partner assessments, and sector data, the study evaluates the effectiveness of CBI initiatives in expanding access to formal financial services, promoting digital payments, and strengthening consumer trust in the banking system. The findings indicate notable progress in account ownership, electronic payment adoption, and institutional capacity building, while also highlighting persistent challenges related to infrastructure gaps, financial literacy, and regional disparities. The study concludes that sustained regulatory reform, digital innovation, and inclusive policy implementation are essential for achieving comprehensive and equitable financial inclusion in Iraq.