The Central Bank of Iraq (CBI), reaffirming its unwavering commitment to maintaining exchange rate stability, has advanced its comprehensive financial reform program by initiating the phased reintegration of restricted domestic banks into foreign currency networks and raising electronic payment limits for registered businesses.

In a statement on Monday, the central bank reaffirmed its steadfast commitment to maintaining exchange rate stability and "meeting the legitimate demand for the U.S. dollar in accordance with approved regulations and standards."

Citing stable macroeconomic indicators, the central bank denied “any intention” to alter the exchange rate given the current resilience of the Iraqi economy.

The CBI’s assurance comes amid ongoing parallel market pressure on the Iraqi dinar and strict international compliance audits that previously restricted dozens of local banks from trading in U.S. dollars.

CBI Pledges to Meet All Legitimate Dollar Demand

“With respect to meeting the demand for the US dollar, the Central Bank of Iraq emphasized its continuous commitment to providing the foreign currency needs of both the public and private sectors in accordance with approved legal and regulatory frameworks,” the central bank noted.

Backed by strong foreign reserves, the CBI guaranteed smooth international transfers to support legitimate commercial activities.

CBI Aligns With AML/CFT Standards to Secure Financial Channels

The CBI confirmed this file complies with Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) standards to support exchange rate stability and secure financial channels.

The statement underlined that these measures belong to an integrated reform program designed to tackle existing challenges, boost banking sector confidence, and secure long-term monetary stability.

CBI Advances ‘Comprehensive Reform Program’

The CBI also announced it is pushing ahead with its “comprehensive reform program,” collaborating with international partners to safeguard monetary stability, modernize the banking sector, and deepen global financial integration.

The central bank’s reforms focus heavily on foreign transfers, having finalized procedures to restore several restricted domestic banks to international foreign currency and U.S dollar transaction networks.

“This comes after these institutions met the requirements of the reform plan, relevant regulatory and technical standards, and strengthened their frameworks for Counter-Terrorism Financing (CFT) and Anti-Money Laundering (AML),” the CBI added.

CBI Finalizing Bank Reintegration, E-Payment Boost

According to the central bank, the reintegration process is in its final stages to guarantee an orderly, phased rollout.

The move aims to optimize banking services for domestic clients while restoring essential correspondent relationships with global financial institutions in line with international best practices.

To expand digital operations, the CBI has successfully raised electronic payment card limits for registered businesses and corporations. “This measure will contribute to expanding the scope of digital financial services, promoting financial inclusion, and meeting the needs of various segments of users utilizing modern payment tools.”

The CBI highlighted that subsequent phases will be rolled out gradually to consolidate regulatory controls, safeguard financial system integrity, and keep pace with rapid domestic and international sector developments.

PM, New CBI Governor Back Reform

Prime Minister Ali Faleh al-Zaidi said earlier that the banking reform program is essential for achieving financial stability and promoting economic growth.

Meanwhile, upon taking over the central bank's departments, the new Governor of the Central Bank, Nizar Nasser Hussein, explicitly stated that his priority during this transition phase is maintaining "institutional continuity and enhancing performance efficiency" to secure national monetary stability and protect the value of the Iraqi dinar.