The Central Bank of Iraq has recently concluded its quarterly meetings with U.S. representatives and international auditing firms, yielding positive outcomes. The bank has firmly denied allegations suggesting that some Iraqi banks are under international sanctions.
In a statement, the Central Bank highlighted that the initial quarterly meetings of 2025 involved discussions with the U.S. Treasury and the Federal Reserve, held in the United Arab Emirates. This assembly also included international auditing and consulting firms such as EY, K2 Integrity, and Oliver Wyman. The meetings received commendation for the initiatives undertaken by the Iraqi central authority and the Iraqi government to reform the banking sector.
Key reforms identified during these discussions include:
- 1. Development of a robust U.S. dollar distribution system in Iraq, recognized as one of the most tightly controlled systems globally, effectively limiting the potential for manipulation and dollar smuggling.
- 2. A significant enhancement in external transfer operations, with the Iraqi Central Bank implementing measures to mitigate associated risks, aligning these operations with those of leading international banks.
- 3. Reviews conducted by consulting firms EY and Oliver Wyman on plans to reform both governmental and private banking sectors to ensure compliance with international standards. This effort aims to facilitate the integration of Iraqi banks into the global financial network.
The Central Bank emphasized that the operations performed by banks in Iraq significantly depend on the trust of international correspondent banks in the Iraqi banking sector. Therefore, it is vital to rely on official channels for updates and to avoid spreading misinformation—such as claims that certain Iraqi banks are facing international sanctions.
