DINAR REVALUATION REPORT Central Bank of Iraq Contracts with Oliver Wyman for Banking Sector Restructuring, 1 SEPT

 Central Bank of Iraq Contracts with Oliver Wyman for Banking Sector Restructuring

The Central Bank of Iraq has recently contracted with Oliver Wyman, a global consulting firm, to conduct a comprehensive review of the conditions of Iraqi banks, particularly those banned from dealing in US dollars. 1 This move is aimed at developing practical solutions for the reintegration of these banks into the Iraqi and international banking sector, alongside improving banking procedures in line with international standards. 2

Enhancing Banking Sector Reforms

The partnership with Oliver Wyman comes at a critical time, as the Central Bank seeks to facilitate the establishment of direct banking relations and improve the quality of services provided by banks to better serve the Iraqi economy. The company is scheduled to begin its work soon to address the challenges facing Iraqi banks, especially those under sanctions. 1

Delegation Visit to the United States

In related news, a Central Bank of Iraq delegation, led by Governor Ali Al-Alak, visited the United States to discuss developments in the Iraqi banking sector. 5The talks have included the evolving situation within Iraq's banking industry and the restrictions placed on using the US dollar by numerous private Iraqi banks. Discussions have also touched on the potential elimination of the current currency platform at the start of the next year, with a shift towards relying on correspondent banks, which could impose additional constraints on private Iraqi banks.  5

Collaboration with International Firms

During this visit, the delegation held separate meetings with various companies, such as Visa, Mastercard, and MoneyGram. 2 The meetings focused on enhancing electronic payment systems and stimulating their use in alignment with Iraq's push towards electronic payments, demonstrating the Central Bank's commitment to modernizing the banking sector.

International Auditing Firm's Role

The delegation also discussed the role of an international auditing firm, KPMG, which presented extensive analytical insights on the use of electronic payment cards, supported by recommendations and proposals to enhance their organized use and accommodate the significant increase in citizens' adoption of these cards. 2

Diversifying Currencies in External Transfers

In a separate development, the Central Bank of Iraq announced the start of a new phase in foreign transfer operations, involving 13 Iraqi banks. This initiative, which aims to enhance currency diversity and facilitate international transfer operations, will include dealing in euros, Chinese yuan, Indian rupees, and UAE dirhams.  3

Commitment to Transparency and Security

The Central Bank of Iraq's commitment to achieving the highest levels of transparency and security in all foreign transfer operations is evident in its ongoing efforts to support economic growth and expand international cooperation with global markets. 3

Conclusion

The Central Bank of Iraq's proactive measures in contracting with Oliver Wyman and collaborating with other international firms underscore its dedication to reforming and modernizing the Iraqi banking sector. These initiatives are expected to contribute significantly to the overall economic development of the country by improving banking services and fostering international partnerships.