Al-Nusairi: The Central Bank Is Making Fruitful Efforts In The First Half Of 2025 To Achieve The Comprehensive Banking Reform Project
Banks Economy News – Baghdad Economic and banking advisor Samir Al-Nusairi affirmed on Wednesday that the Central Bank's measures and efforts during the first half of 2025 were fruitful in implementing the objectives of the comprehensive banking reform project, in cooperation with the government and international consulting and auditing firms, particularly Oliver & Wyman, and the goals and initiatives of its third strategy for 2024-2026.
Al-Nusairi spoke about the challenges facing the Iraqi economy and the opportunities for reforming the banking sector within the government's framework, as well as the prospects of the Central Bank's future vision for the role of the banking sector in sustainable development.
He also spoke about the efforts currently being made to activate and revolutionize productive economic sectors other than oil, to diversify sources of national income and achieve financial sustainability, and the role of the Central Bank in regulating foreign trade financing.
Completing infrastructure projects to achieve comprehensive digital transformation and expanding the use of electronic payment tools to achieve financial inclusion.
Al-Nusairi explained that opportunities for reforming and developing the banking sector in 2025 are based on the following objectives: First: Developing the Iraqi banking system and its compliance with international banking and accounting
standards.
Second: Enhancing citizens' confidence in the banking sector locally, and internationally recognizing its transparency, progress, and strict commitment to international standards, and gaining the trust of reputable correspondent banks to deal with it.
Third: Transforming banks to their primary function, which is financing and bank lending for development. Strengthening financial inclusion and increasing its current rate as planned. Fourth: Banks that do not provide loans and banking facilities that contribute to development, as they are the lever of sustainable development, lose their meaning as banks, which requires a specific position from the Central Bank in 2025.
Fifth: Strengthening procedures and decisions to transition from a cash economy to a digital economy and withdrawing funds outside the banking cycle and bringing them into the banking system.
He pointed out that all the above objectives, although the period specified for their implementation according to the banking reform project and the Central Bank strategy ranges between (1-4 years), what was achieved in 2023 and 2024 until 6/30/2025 constitutes ambitious percentages as announced, which led to the evaluation and classification of banks based on their achievement of the planned objectives.
There are banks moving towards the required development and banks that still need an additional period of time to achieve the objectives, and there are troubled banks that are now making exceptional efforts from the Central Bank and the administrations of these banks to rehabilitate them. 881 views https://economy-news.net/content.php?id=56859
CHELLA : Iraqi Dinar News: War, Diplomacy and Iraqi Reforms
Summary
The Middle East Weekly Review for the week of the 27th provides a comprehensive analysis of the recent sharp escalation and sudden de-escalation in regional hostilities, particularly focusing on the conflict involving Iran, Israel, and the United States, alongside an in-depth look at Iraq’s ongoing economic reforms and challenges.
The geopolitical landscape witnessed an intense and rapid surge in conflict marked by coordinated US-Israeli airstrikes targeting critical Iranian nuclear facilities, which led to heightened tensions and strong international reactions. However, this period of conflict abruptly transitioned into a ceasefire, underscoring the volatility and complexity of the region’s power dynamics. Meanwhile, Iraq’s internal situation reveals a dual challenge: managing external geopolitical pressures while pursuing ambitious economic reforms aimed at stabilizing and diversifying its economy.
Key developments in Iraq include efforts to restart oil exports through disputed pipelines, financial measures in Kurdistan, robust foreign currency reserves, infrastructure projects like a major railway upgrade funded by the World Bank, youth entrepreneurship programs, and initiatives to improve financial transparency and combat corruption.
Despite these positive steps, Iraq faces difficulties such as the exposure of covert sanction-busting schemes facilitating Iran’s circumvention of US sanctions, highlighting the fragile nature of regional financial oversight. Humanitarian aid efforts continue to address immediate economic vulnerabilities. Overall, the review paints a picture of a region in flux, where rapid shifts in conflict and diplomacy intersect with Iraq’s striving for economic resilience, raising critical questions about the future trajectory of peace, stability, and prosperity in the Middle East.
Highlights
🔥 Rapid escalation and sudden ceasefire mark the intense 12-day war between Israel and Iran.
💣 US and Israeli coordinated strikes destroyed key Iranian nuclear sites, significantly impacting Iran’s nuclear ambitions.
🌍 Divergent global reactions: UK supports diplomacy and US action, UN condemns strikes, Iraq firmly opposes military solutions.
🚢 Efforts to restart oil exports via the Kurdistan-Turkey pipeline aim to boost Iraq’s revenue and ease regional energy tensions.
🚆 World Bank-backed $930 million railway upgrade seeks to connect Iraq and boost trade and job creation.
💳 Iraq partners with a US firm to strengthen anti-money laundering efforts, improving financial transparency and trust.
Key Insights
⚡ Volatility and Speed of Conflict Dynamics: The rapid escalation from airstrikes targeting Iran’s nuclear facilities to a sudden ceasefire within days reveals the precarious and highly fluid nature of Middle Eastern geopolitics. This suggests that, despite intense hostilities, pragmatic calculations, including war-weariness and strategic damage assessment, play a critical role in conflict resolution. The speed of both escalation and de-escalation highlights the potential for swift diplomatic pivots in seemingly intractable conflicts.
🛑 Targeting Iranian Nuclear Infrastructure as a Strategic Pivot: The coordinated US-Israeli strikes on central Iranian nuclear sites such as Isfahan and Natanz represent a direct attempt to curb Iran’s nuclear capabilities. This military action underscores how nuclear non-proliferation concerns remain a primary driver of regional conflict, but also how military interventions can provoke strong international backlash and complicate diplomatic efforts. The strikes’ success may have pressured Iran toward negotiations, revealing a complex interplay between force and diplomacy.
🌐 Fragmented International Responses Reflect Geopolitical Interests:The varied reactions—from the UK’s cautious support of US actions coupled with calls for diplomacy, to the UN’s strong condemnation of military escalation, and Iraq’s outright rejection of strikes—highlight the multiplicity of interests and perspectives shaping Middle Eastern diplomacy. This fragmentation complicates unified international approaches and reflects the delicate balance countries maintain between security concerns, regional alliances, and international law.
🇮🇶 Iraq’s Economic Reform Amid Geopolitical Pressures: Iraq’s dual challenge of managing external conflicts and internal reform efforts is emblematic of broader regional struggles. The attempt to restart oil exports through disputed pipelines and the suspension of currency exchange in Kurdistan hint at ongoing political and economic tensions within Iraq’s federal structure. Yet, robust foreign currency reserves provide a financial buffer, suggesting a degree of macroeconomic resilience even in uncertain times.
🚆 Infrastructure Investment as a Catalyst for Economic Diversification: The World Bank’s approval of nearly $1 billion to upgrade Iraq’s railway network is a strategic move to diversify the economy beyond oil, enhance internal connectivity, and position Iraq as a regional trade hub. This project’s potential to create over 21,000 jobs annually also addresses critical unemployment issues, particularly among youth, and signals a long-term vision for sustainable economic growth.
💡 Youth Entrepreneurship and Financial Sector Reform: The launch of the Knights program to support young entrepreneurs through loans, training, and mentorship reflects Iraq’s focus on fostering a more diverse and inclusive economy. Complementing this, the partnership between Iraq’s largest digital payment company, Keycard, and US-based K2 Integrity to improve anti-money laundering measures demonstrates a commitment to financial transparency, essential for attracting legitimate investment and promoting economic stability.
🚨 Sanctions Evasion and Financial Oversight Challenges: The exposure of covert schemes enabling Iran to circumvent US sanctions via Iraqi financial systems underscores persistent governance and regulatory challenges in the region. This not only undermines international sanctions’ effectiveness but also raises questions about Iraq’s capacity to enforce financial integrity in a complex geopolitical environment. The ongoing investigations and reform partnerships indicate awareness but also highlight the fragile nature of regional financial compliance.
In summary, the Middle East Weekly Review reveals a region simultaneously marked by rapid shifts in military conflict and diplomatic efforts, alongside determined attempts by Iraq to build economic resilience through infrastructure, financial reform, and youth empowerment. These dynamics encapsulate the broader challenges and opportunities facing the Middle East as it navigates a future shaped by both conflict and reform.
Iraqis Await The US Federal Reserve's Interest Rate Decision
2025/07/02 Reading: 90 times {Economic: Al Furat News} Iraq is closely monitoring the US Federal Reserve's upcoming interest rate decision amid expectations it will have a direct impact on the currency market and local investments.
In this context, economic expert Salah Nouri told Furat News, "The dollar's decline as a result of inflation or interest rate cuts by the Federal Reserve usually prompts investors and central banks to seek safe havens such as gold.
"
He added, "The Central Bank of Iraq is in a good position in terms of its investments in gold," noting that "the bank's balanced policy is to diversify investments between gold and the dollar."
Nouri explained that "this investment diversification aims to protect the Iraqi economy from global market fluctuations," adding that "Iraq is carefully awaiting the Federal Reserve's decision, given its repercussions for its financial stability." LINK
They were supposed to have revalued the currency again, I believe they did, and it's at a decent rate on the screens, but it's currently on the back screen of the Forex...
Now, if all goes according...that back screen IQD rate on the dinar will go and show itself on the front screen of the Forex
...
we had approximately 17 currencies on the front screens of the redemption centers, and those were fluctuating in value as trading is continuing between various currency trading pairs...
we think there could be as many as 24 that are actually going to appear when we go in for our exchanges.
A phone call to refresh pockets: Al-Sudani calls Barzani, and an agreement is reached to release May salaries tomorrow
An informed source revealed, on Tuesday evening (July 1, 2025), that Prime Minister Mohammed Shia al-Sudani will hold a phone call with the Prime Minister of the Kurdistan Regional Government, Masrour Barzani, within the next few hours, with the aim of putting the final touches on a financial agreement concerning the region's employees.
According to the source who told Baghdad Today, "The anticipated contact will culminate in an official understanding stipulating the release of May salaries for the region's employees, with the
payments to be made tomorrow, after the Sudanese Prime Minister signs the decision directly."
He expected that "the financing will be done in the form of advances and financial transfers," based on Article (77) of the budget tables for the years 2023-2025.
This agreement is expected to help calm the tensions between Baghdad and Erbil and restore some confidence to the region's employees, who have long been awaiting payment. link