Sunday, June 8, 2025
Iraq announces Major Banking Sector Overhaul
Iraq is embarking on a comprehensive restructuring of its banking sector with the assistance of leading international consultancy firms, according to Dr Salih Salman, Advisor to the Iraqi Prime Minister, speaking at the Iraq Britain Business Council (IBBC) Spring Conference in London on Tuesday.
The Iraqi government has appointed Ernst & Young to restructure six of the country's seven state-owned banks, including the Industrial Bank, Real Estate Bank, Rafidain Bank, and Rasheed Bank.
The Trade Bank of Iraq (TBI) has separately engaged K2i and KPMG to help restructure its internal and external operations to meet international standards.
Dr Salman revealed that Rafidain Bank, Iraq's largest state-owned institution, will be reincarnated as the First Rafidain Bank with government participation reduced to less than 24 per cent. The remaining shares will be offered to private banks and international investors. The restructuring plan is expected to be finalised and approved by the Iraqi government by the end of the year.
The private banking sector is also undergoing reform following a contract signed between the Central Bank of Iraq (CBI) and Oliver Wyman. This two-to-three-year project will result in recommendations for private banks to either exit the sector, comply with international standards, or merge with other institutions.
Iraq has made significant progress in electronic payment systems adoption, with financial inclusion rising from less than 10 percent in 2018-2019 to approximately 40 percent currently. The number of debit and credit cards has reached 60,000-70,000, whilst bank accounts have grown to 22-23 million.
From June 2025, all government payments will be made electronically, with cash payments prohibited across government institutions. The Iraqi government has launched awareness campaigns to encourage public adoption of electronic payment systems, moving away from the traditional cash-based culture.
The government has also introduced the Riyada programme, operated in partnership with the Central Bank of Iraq, to provide financing and training for small and medium enterprises. The initiative offers a registration platform where participants can access training and potential financing opportunities.
Dr Salman emphasised that Iraq remains open to foreign investment and international consultancy services across all sectors, including legal, financial, accounting, auditing, and compliance services. The reforms aim to integrate Iraqi banks into the global financial system after decades of isolation due to sanctions and frozen assets.
Since November 2022, all bank transfers in Iraq have been processed through a Central Bank platform in cooperation with the Federal Reserve of the United States, marking Iraq's re-entry into global financial systems. The country now works with approximately 30 overseas banks, though challenges remain in opening international banking relationships.
The comprehensive banking reforms represent a significant shift towards international standards and greater private sector participation in Iraq's financial sector.
(Picture credit: IBBC)
TIDBIT FROM MNT GOAT
Mnt Goat
where...are...we...with the RV saga... The choo-choo train is still moving down the tracks quickly.
It may make stops along the way, such as to combat money laundering, implementing financial reforms, implementing the Development Road Project, etc, etc.
. ..Many of these plans are already accomplished, some now in motion and some still in the planning stages...
They do not have to implement all of these plans to get there...Later this wealth will sustain the value of the dinar once reinstated...all trains eventually make it to the end of track. This end is coming.
Iraq’s Defense Committee backs Global Coalition presence
Shafaq News/ On Saturday, Iraq’s parliamentary Committee of Security and Defense affirmed the need for the continued presence of the US-led Coalition to provide aerial support amid growing regional security threats.
The committee member Yasser Iskander Watout told Shafaq News that Iraq requires substantial logistical and air assistance to secure its airspace, as its current capabilities are insufficient to monitor shared borders with neighboring states.
He also explained that recent contracts to procure 14 modern aircraft “do not cover the full needs,” stressing the importance of allocating a dedicated budget to support the Ministry of Defense and strengthen the air force with new qualified personnel.
Watout also noted that efforts by the Ministry of Interior and the Border Guard Command, supported by other security forces, have succeeded in tightly securing the border strip with Syria.
In an interview with Al-Arabiya, Minister al-Abbasi stated that the Coalition’s presence in Syria is “necessary,” confirming that Baghdad has not received any official notification of changes to the Coalition’s withdrawal timeline or of any request to increase the number of US troops.
The statement follows ongoing discussions between Baghdad and Washington through the Joint Higher Military Commission, established in 2023 to define the future of the US military presence in Iraq.
In early 2020, Iraq’s parliament voted to require the government to establish a timetable for ending foreign military presence, following the US strike that killed Quds Force commander Qassem Soleimani and Popular Mobilization Forces deputy chief Abu Mahdi al-Muhandis near Baghdad International Airport.
US forces in Iraq are currently stationed at several bases, including Ain al-Asad in Al-Anbar and Harir in Erbil. Around 2,500 American troops remain in the country, focused on combating ISIS remnants and providing logistical support to Iraqi forces under the Global Coalition.
DINAR EXCHANGE 🚨 Iraq’s $16 Trillion Resource Revelation!
DINAR EXCHANGE
Iraq’s $16 Trillion Resource Revelation!
PM Advisor Salih unveils Iraq’s vast mineral wealth, positioning it as the 9th richest globally. With plans to diversify the economy and reduce oil dependence, could this be the catalyst for the Iraqi Dinar’s revaluation? #Iraq #IQD #EconomicDiversification #DinarRevaluation
Iraq’s $16 Trillion Resource Revelation: A Catalyst for Dinar Revaluation?
Iraq’s Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, recently announced that the nation’s natural resources are valued at over $16 trillion. This immense wealth, encompassing minerals like thorium, uranium, phosphate, sulfur, and lithium, positions Iraq as the ninth richest country globally in terms of natural resources.
The Iraqi government is actively pursuing economic diversification, aiming to reduce its heavy reliance on oil revenues. By developing the mining sector, which is expected to contribute at least 10% to Iraq’s GDP during its initial development phase, Iraq seeks to stabilize its economy and strengthen the Iraqi Dinar (IQD).
According to Basel III requirements, a nation’s currency should reflect its tangible assets. With Iraq’s vast untapped resources, there’s a compelling case for a revaluation of the IQD.
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