Iraq rolled out new banking and financial reforms to attract foreign investment and strengthen its economy. Salih Mahoud Salman, adviser to the prime minister, announced the plan at the Banking Reform Conference in Washington.
He said the new banking and financial reforms were designed through cooperation between the Central Bank of Iraq (CBI), government bodies, and global consulting firms. The goal is to modernize Iraq’s banking sector, build investor trust, and ensure stronger financial stability.
One of the major steps is the launch of a three-year federal budget — the first in Iraq’s history. Salman noted that this budget will bring stability and help investors plan with more confidence. It marks a shift toward predictable financial management.
Iraq also automated customs operations using the UN’s ASYCUDA system. This move boosted customs and tax revenues and reduced corruption risks. Salman said the higher income gives the government more fiscal strength to support reforms.
The government restructured four state-owned banks — al-Rafidain, al-Rasheed, Industrial, and Agricultural. These banks now focus on efficiency, private-sector lending, and better digital services.
Iraq also expanded electronic payment systems, pushing financial inclusion from below 10% to over 40% in two years. The change shows growing public trust in the banking system.
Salman added that the plan supports small and medium-sized enterprises (SMEs). These businesses are key to job creation and economic diversification. He called the reforms a “turning point” for Iraq’s financial development.
He confirmed that Iraq will continue working with international partners to advance its banking reforms. The government aims to create a transparent and competitive environment that attracts more investment.