DINAR REVALUATION REPORT: Central Bank of Iraq's High-Level Delegation Achieves Notable Outcomes in US Visit, 2 SEPT

 Central Bank of Iraq's High-Level Delegation Achieves Notable Outcomes in US Visit

On a mission to enhance Iraq's banking sector and strengthen international financial ties, the Central Bank of Iraq (CBI) dispatched a high-level delegation to the United States. The visit, spanning from August 26 to 29, 2024, was led by Governor Ali Mohsen Al-Alaq, accompanied by senior officials from the CBI. 1

Intensive Meetings and Strategic Engagements

During their stay in New York City, the delegation engaged in a series of intensive meetings with key entities in the US financial sector. These included the US Treasury Department, the Federal Reserve Bank, and prominent financial institutions such as Visa, Mastercard, and MoneyGram. 2

Discussions with US Treasury and Federal Reserve

The talks with the US Treasury Department and the Federal Reserve Bank centered on the evolving landscape of Iraq's banking industry. The CBI sought insights and guidance on regulatory frameworks and best practices to bolster the Iraqi banking sector's resilience and compliance with international standards. 2

Meetings with Financial Institutions and Auditing Firms

The delegation also convened with representatives from major banks such as Citi Bank and JP Morgan, as well as international auditing firms including KPMG, E&Y, K2i, and Oliver Wyman. 2 These meetings aimed to explore opportunities for collaboration, improve financial oversight, and streamline processes for international transactions.  4

Major Transformations and Enhancements

The participants in the meetings lauded the significant progress made by the CBI in recent years. Notable achievements included: Improved monitoring of foreign transfers and cash sales of the US dollar. Alignment of systems, policies, and procedures with international and local standards. 2 Enhanced transparency in covering foreign trade. Strengthened protection for the banking and financial sector against money laundering, terrorist financing, and financial crimes. 2

Upcoming Shift in Foreign Transfer Mechanisms

A pivotal development announced during the visit was the planned shift from the current electronic platform for foreign transfers to direct banking relations between Iraqi banks and international correspondent banks.  4 This transition is expected to: Stabilize exchange rates. Enhance the overall efficiency of Iraq's financial system. Facilitate financial transactions involving US dollar transfers. 4

A year-end meeting is scheduled between CBI officials and international partners to further discuss and implement this strategic shift. 4

Conclusion

The Central Bank of Iraq's visit to the United States in August 2024 marked a significant step forward in modernizing Iraq's banking sector and aligning it with global financial standards. Through strategic meetings and negotiations, the CBI demonstrated its commitment to enhancing financial transparency, stability, and international cooperation.