IPBL hails CBI’s agreements with US Treasury

An aerial view of the new headquarters of the Central Bank of Iraq (CBI). Photo: Zaha Hadid Architects Baghdad (IraqiNews.com) – The Iraqi Private Banks League (IPBL) said on Saturday that the recent agreement between the Central Bank of Iraq (CBI) and the US Treasury Department is an important step in the reform of the Iraqi banking sector. The IPBL said in a statement that it welcomes the outcomes of discussions between the CBI Governor, Nizar Nasser, and US Treasury officials, which took place as part of Prime Minister Ali al-Zaidi’s official visit to the United States. The IPBL applauded the decision, which would allow seven Iraqi banks that have been suspended from foreign networks to progressively resume correspondent banking transactions in foreign currencies. The step is important and reflects the success of the first phase of the banking sector reform implemented by the CBI, according to the IPBL. This significant achievement will have a direct and beneficial impact on boosting the stability of the Iraqi currency’s value, as well as improving Iraqi banks’ capacity to satisfy the demands of foreign commerce and finance the domestic market. The IPBL reaffirmed its complete support for the CBI plan, which aims to modernize and competitively boost the banking sector to secure long-term integration into the global financial system and enable the Iraqi economy to become more open to international financial institutions. For years, the US Treasury has coordinated with the CBI to strengthen control over Iraqi banks, citing concerns about financial irregularities, notably the transfer of US cash to sanctioned organizations linked to Iran.