The Central Bank of Iraq (CBI) has announced the results of a high-level delegation visit led by Governor Ali Mohsen Al-Alaq to the United States from August 26 to 29, 2024.
In a statement, CBI confirmed that the delegation held a series of intensive meetings in New York, including discussions with the US Treasury Department and the Federal Reserve. The delegation also met with representatives from major companies like Visa, Mastercard, and MoneyGram, as well as financial institutions such as Citi Bank and JP Morgan, and international auditing firms including KPMG, E&Y, K2i, and Oliver Wyman.
The meetings highlighted the significant reforms achieved by the Central Bank of Iraq, particularly in enhancing oversight of international transfers and cash sales of US dollars. These improvements have aligned Iraq’s financial systems, policies, and procedures with both international and local standards, increasing transparency in foreign trade financing and safeguarding the banking and financial sectors against money laundering, terrorism financing, and other financial crimes.
CBI announced plans for a year-end meeting between its officials and international partners to discuss the shift from the electronic platform for international transfers to direct banking relationships between Iraqi banks and their international correspondents. This transition, as planned by the CBI, will allow both the CBI and the Federal Reserve to focus on supervisory roles, enhancing the stability, efficiency, and transparency of Iraq’s foreign trade financing. This move is also expected to stabilize exchange rates and strengthen the overall efficiency of Iraq’s financial system.
Additionally, the New York meetings addressed strategies to expand Iraq’s network of international correspondent banks and to prepare Iraqi banks to meet the necessary requirements for opening accounts with these global institutions. This effort aims to facilitate financial transactions, whether through US dollar transfers or other foreign currencies.
