Central Bank of Iraq Engages with U.S. Treasury and Federal Reserve to Enhance Banking Sector
On February 16, 2025, the Central Bank of Iraq announced the outcomes of its recent quarterly meetings with the U.S. Treasury and the U.S. Federal Reserve, held in Dubai. These meetings also included participation from prominent international auditing and consulting firms such as EY, K2 Integrity, and Oliver Wyman.
Advancements in Monetary Systems
During these discussions, key advancements regarding the Iraqi banking sector were highlighted. One of the most significant developments is the enhancement of the monetary distribution system for U.S. dollars within Iraq. The Central Bank emphasized that this revamped system is among the most tightly regulated worldwide, designed specifically to mitigate incidents of manipulation and dollar smuggling.
Furthermore, the Central Bank reported a qualitative improvement in external transfers, aligning the operational capabilities of the Iraqi banking sector with those typically seen in international banks. This shift demonstrates a commitment to elevating Iraq’s position in the global financial landscape.
Upgrading International Standards
The consulting firms involved in the meetings conducted evaluations of the existing planning and upgrading processes, ensuring these align with international standards. This strategic review aims to facilitate greater involvement of Iraqi banks within the international financial network, thereby enhancing the overall functionality and trustworthiness of the sector.
Communicating Confidence in the Banking Sector
In its statement, the Central Bank underscored the importance of relying on official announcements for accurate updates and cautioned against the spread of misinformation related to international sanctions affecting Iraqi banks. The statement noted that the operations conducted by banks in Iraq are heavily reliant on the trust and confidence of global correspondent banks in the Iraqi financial framework.
As the Iraqi economy continues to evolve, these developments signify a progressive step towards a more transparent and robust banking industry, fostering greater international cooperation and financial integrity.
