Baghdad, Iraq- The Central Bank of Iraq (CBI) recently concluded its first quarterly meetings of 2025 with key representatives from the US Treasury Department and the Federal Reserve Bank. Held in Dubai, UAE, the sessions also included participation from leading international auditing and consulting firms such as EY (Ernst & Young), K2 Integrity, and Oliver Wyman, highlighting the collaborative nature of Iraq’s efforts to enhance its financial systems.
The meetings yielded significant progress in several key areas. The CBI’s US dollar distribution system was recognized for its robust controls and monitoring, earning praise as one of the most tightly managed systems globally. This effective oversight has significantly reduced the risks of manipulation and illegal outflows of US dollars, contributing to greater financial stability.
Discussions also focused on the substantial improvements made to Iraq’s international transfer systems. The CBI’s newly implemented risk mitigation measures, now aligned with global banking standards, promise to enhance the security and efficiency of cross-border financial transactions, facilitating smoother and more reliable international trade and investment.
Reform plans for both the public and private banking sectors in Iraq were a central topic of presentations delivered by EY and Oliver Wyman. These proposed reforms are designed to strengthen international compliance within the Iraqi banking sector, paving the way for greater integration of Iraqi banks into global financial networks. The overarching goal is to enhance the stability and resilience of the entire banking system, fostering greater confidence in Iraq’s financial institutions.
Recognizing the crucial role of trust in maintaining relationships with correspondent banks, the CBI emphasized the importance of relying on official sources for information regarding Iraq’s financial sector. The bank also cautioned against the spread of misinformation, particularly false claims concerning international sanctions on Iraqi banks, which could negatively impact the country’s financial standing.
These collaborative meetings underscore Iraq’s ongoing commitment to strengthening its financial infrastructure and aligning with international standards. These efforts are vital for ensuring the long-term stability and sustainable growth of the Iraqi economy, fostering greater confidence among international partners and investors.
