Earthquake in Iraq’s banking sector: Understanding with Washington paves the way for 7 banks to return to international markets

Iraqi Prime Minister Ali al-Zaidi confirmed that the understanding reached by the Central Bank of Iraq with the U.S. Treasury Department regarding the rehabilitation of seven Iraqi banks constitutes a key milestone in the path of reforming the banking sector and strengthening the confidence of international financial institutions in Iraq’s banking system.

Al-Zaidi explained that the rehabilitation of these banks to re-engage in external correspondent banking channels in foreign currencies represents a preliminary step toward restoring their ability to conduct transactions in U.S. dollars, after completing compliance requirements with international standards and implementing rules of governance and transparency.

The Iraqi prime minister stressed that the government will continue to support the financial and banking reform program, affirming that entrenching the principles of governance and transparency is aimed at enhancing financial stability, developing the investment environment, and consolidating Iraq’s economic standing at both the regional and international levels.