The Iraqi Private Banks League says recent agreements between the Central Bank of Iraq and the U.S. Treasury mark a major step in banking reform and are expected to strengthen the stability of the Iraqi dinar while expanding Iraqi banks’ access to international financial markets.

Banking Reform and U.S. Treasury Talks

The Iraqi Private Banks League (IPBL) said on Saturday that the understandings reached between the Central Bank of Iraq (CBI) and the U.S. Treasury Department represent a major turning point in the reform of Iraq’s banking sector. According to the League, the agreements will have a direct and positive impact on the stability of the Iraqi dinar.

The League welcomed the outcomes of the high-level discussions between Central Bank Governor Nizar Nasser and U.S. Treasury officials. It said the talks build on government efforts made during Iraqi Prime Minister Ali Faleh Al-Zaidi’s official visit to the United States.

Seven Iraqi Banks Regain International Access

The League praised the agreement to restore seven Iraqi banks to external correspondent banking channels in foreign currencies other than the U.S. dollar. It described the move as a key milestone that demonstrates the success of the first phase of the banking sector reform and relicensing program led by the Central Bank of Iraq.

According to the statement, the development will strengthen the stability of the Iraqi dinar, reinforce the financial soundness of Iraqi banks, and improve their ability to support foreign trade and finance the domestic market.

Compliance Requirements for Remaining Banks

The League said banks that remain under restrictions will be able to operate in other foreign currencies once they complete the requirements of the first phase of the reform program.

It urged those banks to accelerate compliance with the Central Bank’s standards and complete anti-money laundering (AML) and counter-terrorism financing (CTF) requirements as quickly as possible.

Support for Banking Modernization

The Iraqi Private Banks League reaffirmed its full support for the Central Bank of Iraq’s strategy to modernize the banking sector and enhance its resilience and competitiveness.

It said the reforms are intended to ensure the banking sector’s full and sustainable integration into the global financial system while creating a stronger environment for expanding Iraq’s economic ties with international financial institutions.