Iraq’s CBI Completes Steps to Reintegrate Banks Previously Restricted from Dollar Transactions

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The Central Bank of Iraq (CBI) announced on Monday that it has completed the procedures and requirements necessary for the reintegration of several banks that had previously been restricted from conducting foreign currency transactions in US dollars.

In a statement received by PUKMEDIA, the CBI said the move forms part of its broader efforts to strengthen monetary and financial stability, modernise the banking sector and deepen its integration into the global financial system. The bank noted that it continues to implement a comprehensive reform programme in coordination with relevant international institutions.

According to the statement, the affected banks have met the requirements of the reform plan, complied with relevant regulatory and technical standards, and strengthened their anti-money laundering and counter-terrorism financing frameworks. As a result, the reintegration process has entered its final stages, paving the way for a gradual and orderly return to dollar-denominated foreign currency transactions.

The Central Bank said the measure would enhance the banks’ ability to serve customers and support the expansion of correspondent banking relationships with international financial institutions in line with global best practices and standards.

The statement also revealed that the CBI has completed the technical and procedural preparations required to increase spending limits on electronic payment cards used by registered companies and businesses. The move is expected to expand digital financial services, promote financial inclusion and better meet the needs of users of electronic payment systems.

The bank added that the project will be implemented in phases, with appropriate regulatory controls in place to ensure the integrity and efficiency of the system while keeping pace with developments in the financial sector.

Reaffirming its commitment to meeting demand for US dollars, the Central Bank said it would continue to provide foreign currency in accordance with approved regulations and standards, ensuring the smooth processing of transfers and the fulfilment of legitimate public and private sector needs. The bank stressed that these efforts are supported by strong foreign currency reserves, effective monetary policy tools and strict compliance with anti-money laundering and counter-terrorism financing requirements.

The CBI said the measures form part of a wider reform agenda aimed at addressing key challenges, strengthening confidence in Iraq’s banking sector and reinforcing financial and monetary stability, while supporting the country’s broader economic development.

The statement concluded by affirming the bank’s commitment to pursuing policies that enhance the banking environment, improve the efficiency of the financial system and support sustainable economic growth, with the ultimate goal of maintaining long-term financial stability and safeguarding exchange rate stability.



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