Baghdad — Iraq has reached a new agreement with US Treasury officials on banking access. The deal marks an Iraqi banking reform milestone as authorities work to reconnect eligible banks with global networks. The agreement focuses on correspondent channels outside US dollar transactions at the initial stage. Officials said approved banks must complete compliance and governance steps before returning.
The Central Bank of Iraq announced the development after meetings with US Treasury representatives. The talks followed diplomatic efforts to strengthen economic ties between Iraq and the United States. Officials described the move as part of a wider banking modernization plan. The plan aims to improve trust, efficiency, and international cooperation across Iraq’s financial sector.
The agreement allows restricted banks to seek renewed connections with international correspondent channels. However, banks must first meet regulatory standards and complete required review procedures. The Central Bank of Iraq will continue examining institutions through its reform and licensing program. This process will determine which banks qualify for expanded international operations.
The central bank said successful institutions may later regain access to US dollar transactions. They must complete additional requirements before receiving that approval. The approach reflects Iraq’s focus on stronger oversight and improved financial controls. It also supports efforts to align local banks with global banking practices.
Iraqi officials said the reform program will strengthen governance, risk management, and compliance systems. The Iraqi banking reform milestone also represents a step toward deeper integration with international financial markets. Authorities plan to maintain strict supervision of banks that fail to meet required standards. They may limit access or take further regulatory action when necessary.
The Central Bank emphasized that the changes will not happen immediately. Banks must complete each stage before receiving broader access to international services. The program seeks to create a more competitive banking environment inside Iraq. It also aims to encourage confidence among international financial partners.
The latest agreement highlights Iraq’s continued efforts to reshape its financial sector. The country wants stronger banking links while protecting the integrity of financial transactions. The Iraqi banking reform milestone could influence future cooperation between Iraqi banks and international institutions. The coming months will show how quickly eligible banks complete the required steps.