💹 Central Bank of Iraq: Major Banking Reforms & Dollar Flow Restoration 🇮🇶
⭐ Introduction
The Central Bank of Iraq (CBI) reassured the public on December 2, 2025, regarding ongoing banking reforms. The reforms aim to rebuild Iraq’s banking sector, restore banks deprived of dollar dealings, and strengthen the foundation for economic stability.
During a session with experts and financial specialists, CBI Governor Ali Mohsen Al-Alaq emphasized that these reforms are a critical pillar of Iraq’s financial modernization plan.
📌 Key Highlights of the CBI Announcement
Comprehensive Banking Reforms
The CBI signed contracts with Oliver Wyman to implement reforms ensuring Iraqi banks meet international standards.
Banks previously restricted in dealing with dollars will gradually regain full operational capacity.
Compliance and Monitoring
All Iraqi banks have signed the reform agreement.
International bodies are directly monitoring progress.
Digital Dinar Implementation
The Digital Dinar project is ongoing.
Requires time, integrated infrastructure, and digital systems before launch.
Price Stability Commitment
CBI emphasizes exchange rate stability and low inflation.
Warning: lowering the dinar’s value could harm low-income citizens and reduce confidence in IQD.
Structural Reforms & Economic Diversification
Exchange rate adjustments will not be used to cover structural deficits.
Focus on maximizing revenues, controlling expenditures, and diversifying the economy.
📈 Why This Matters
Banks deprived of dollar dealings will gradually return to normal operations.
Strengthened financial infrastructure improves public trust and investor confidence.
The Digital Dinar rollout is supported by a more stable banking system.
Structural reforms aim for a resilient Iraqi economy less dependent on oil revenues.
🔍“The Central Bank of Iraq announces comprehensive banking reforms, ensures the gradual return of banks dealing in dollars, and continues implementing the Digital Dinar project for long-term financial stability. ”
💡 Q&A: Central Bank Reforms & Digital Dinar
Q1: Which banks will regain access to dollars first?
A: Compliant banks that adhere to international standards and CBI guidelines will gradually be allowed to resume dollar operations.
Q2: Will the Digital Dinar replace physical IQD notes immediately?
A: No. The Digital Dinar requires a phased rollout, integrated infrastructure, and time to ensure stability.
Q3: How will reforms affect inflation?
A: CBI aims to maintain low inflation and prevent currency devaluation that could hurt low-income citizens.
Q4: Are international organizations involved?
A: Yes. International bodies are directly monitoring reforms to ensure compliance with global banking standards.
Q5: What does this mean for Iraq’s economy?
A: Strengthened banking systems, stable currency, and structural reforms will enhance economic resilience and investor confidence.
📊 Keywords
central bank iraq 2025, iraqi dinar reforms, digital dinar implementation, IQD banking update, dollar restoration iraq, Iraq economy 2025, CBI banking news, Iraqi currency update, IQD news 2025, iraqi banking modernization
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THE CENTRAL BANK REASSURES: COMPREHENSIVE REFORMS AND A SWIFT RETURN OF BANKS DEPRIVED OF DOLLARS.
The Central Bank of Iraq reassured the public on Tuesday (December 2, 2025) regarding the ongoing banking reforms, stressing that rebuilding the banking sector is the main pillar of its work at the present stage, during a session attended by a number of experts and specialists.
The bank said in its statement, received by “Baghdad Today”, that its governor, Ali Mohsen Al-Alaq, presented an extensive proposal for the reform plan, explaining that the contract with Oliver Wyman came after the restrictions imposed on a number of banks dealing in dollars, with the aim of implementing comprehensive reforms that ensure their compliance with international standards, noting that there are assurances that those banks will return to their normal environment after the completion of the reform stages.
The statement added that all Iraqi banks have signed the reform document, indicating that compliant banks will be granted the ability to deal in other currencies in gradual steps, while confirming that international bodies are directly monitoring the progress of work on this file.
He added that the digital dinar project is still under implementation and requires time and integrated infrastructure before it can be officially launched.
The bank noted that Al-Alaq reiterated the commitment to maintaining overall price stability by fixing the exchange rate and keeping inflation at low levels, warning that reducing the dinar’s exchange rate would have negative repercussions on low-income groups and weaken confidence in the national currency.
The statement concluded by stressing the need to avoid using the exchange rate as a tool to address the structural deficit, emphasizing the need for structural reforms to maximize revenues, control expenditures, and diversify the economy, while supporting the government’s directions in this area.