Central Bank of Iraq Governor Ali al-Alaq confirmed that 20 Iraqi banks are now engaging in direct transfer operations in eight foreign currencies. This development follows a series of improvements in Iraq’s foreign remittance system, which have received praise from international financial institutions.
In a statement, Al-Alaq highlighted that recent quarterly meetings with the US Federal Bank and the Treasury Department, held in Dubai, were very positive. During these meetings, the steps taken by the Central Bank to modernize Iraq’s foreign remittance system were acknowledged for their safety, transparency, and organization.
Al-Alaq emphasized that this transformation is the first of its kind in Iraq’s banking history, as the country has transitioned from using a traditional window system to a platform and now operates with international correspondent banks. This modernization process has allowed Iraqi banks to handle foreign transfers more efficiently and in line with international practices.
According to Al-Alaq, the 20 Iraqi banks currently involved in direct transfer operations are now working with international correspondents and handling transactions in eight different foreign currencies.
For the remaining banks that have not yet joined the new system, Al-Alaq explained that they are in the process of qualifying through a partnership with an international consulting firm. These banks are working on meeting specific criteria to eventually join the foreign transfer operations.
Al-Alaq also clarified that there have been no new sanctions or major changes in the banking framework. On the contrary, international bodies have expressed appreciation for the Iraqi banking sector’s progress, particularly concerning the mechanism of selling cash dollars.
The governor stressed the importance of focusing on these positive developments to showcase the progress made within Iraq’s banking system, which in turn is expected to strengthen international financial institutions’ dealings with Iraqi banks.