Report of the International Monetary Fund in its consultations with Iraq on Article IV for 2024, 28 MAY

Report of the International Monetary Fund in its consultations with Iraq on Article IV for 2024

The report issued by the International Monetary Fund’s mission for the current year 2024 for the Article IV consultations praised the Iraqi government’s measures, including the monetary policy led by the Central Bank of Iraq, and the report indicated that the Central Bank of Iraq has taken several measures aimed at stabilizing the national currency and controlling monetary inflation.
He added that the central bank raised the interest rate on monetary policy instruments from 4% to 7.5% and increased the mandatory reserve requirements of banks from 15% to 18%, and these steps were crucial in reducing the inflationary pressures suffered by Iraq, and this contributed to the creation of a more stable economic environment.
The report stressed that important reforms in the banking sector such as the gradual increase in bank capital and mergers between small banks aim to strengthen the banking sector, increase its efficiency and flexibility in the face of economic shocks.
The report noted that Iraq has implemented new compliance measures to improve the transparency of cross-border financial transactions, through the launch of an electronic platform that enforces the disclosure of financial beneficiaries, which enhances the integrity of financial transfers in line with international banking standards, as well as the role of the Central Bank of Iraq in expanding correspondent banking relations, to facilitate international trade financing operations more smoothly.

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Central Bank of Iraq
the media office
May 27, 2024