The Central Bank of Iraq (CBI) has rolled out stricter regulations for banks aiming to trade in foreign currencies other than the US dollar, the Eco Iraq Observatory reported.

Under the new rules, banks dealing in currencies such as the euro, Chinese yuan, or UAE dirham must hold a minimum capital of 300 billion Iraqi dinars (about $205 million). They are also required to submit a binding plan to raise capital to 400 billion dinars (around $275 million) by the end of 2028.

The measures, detailed in a CBI document, are part of a wider banking sector reform program. Banks must also demonstrate stable liquidity in line with international standards—covering liquidity coverage and net stable funding ratios—and fully disclose ownership structures and related-party connections.

The move comes as many Iraqi banks remain barred from dollar transactions. Eco Iraq previously reported that 35 of Iraq’s 72 licensed banks are either under US sanctions or suspended from dollar trading as part of regulatory efforts to enforce transparency and compliance.

In recent months, the CBI has also tightened oversight of commercial invoices and foreign trade documentation, aiming to curb money laundering and align Iraq’s financial system with global standards.

The Central Bank has not disclosed how many banks currently meet the new requirements.