The International Monetary Fund indicates a decline in inflation rates and the stability of the foreign exchange market in Iraq

The Ministry of Finance and the IMF both reported that there had been a “significant decline” in inflation rates, which was mirrored in the drops in the costs of food and energy as well as the stability of the Iraqi foreign exchange market.

The ministry released a statement announcing that the Article IV mission of experts from the International Monetary Fund concluded today, Thursday, in Amman. The discussions covered the implementation of the economic reform program and the advancements made by the Iraqi government in the areas of development infrastructure, financial sustainability, and optimizing non-oil revenues. The delegation was led by Finance Minister Taif Sami.

According to the statement, the delegation attested to the Fund’s commitment to funding development initiatives that will further the fields of public financial management, digital transformation, banking, retirement, and customs, as well as to improve efforts by the private sector to participate in these areas through investment incentives, infrastructure, and reconstruction. The Fund also expressed its intention to carry on with talks and consultations during its regular annual meetings.

“The strong return of growth in the non-oil sector during 2023, with a noticeable decline in inflation rates, and this is reflected in the decline in food and energy prices,” the statement said, praising the Fund’s role.

As per the statement, the mission took note of the favorable developments that followed the implementation of anti-money laundering and anti-terrorist financing controls on cross-border payments, including the return of trade financing operations to their regular course and the stability of the foreign exchange market.

Remarkably, the International Monetary Fund holds bilateral talks known as Article IV consultations with member governments once a year. Following these sessions, a team of Fund specialists meets with the member nation and holds formal consultations with its authorities.