Fnu Lnu
Article: "The Central Bank of Iraq (CBI) has announced the successful transition of external transfers from an electronic platform to direct operations by Iraqi banks through their international correspondent banks."
Finally, we have some movement that directly actually applies to the furtherance of a monetary revaluation.
This is the first real news in months now.
Could they be back on track?
Only time will tell. Remember that NO ONE has the date or rate.
THE FINANCIAL INCLUSION RATE IN IRAQ EXCEEDED 46%.
The Iraqi Private Banks Association noted the success of the basic requirements for implementing advanced standards in combating money laundering, based on the principle of knowing the customer and the sources of their funds.
In a press interview, Wadih Al-Handhal, head of the association, said, “The Central Bank of Iraq is moving forward in implementing compliance standards and enhancing financial inclusion in the banking sector. The Association of Banks also supports ongoing awareness-raising efforts on financial inclusion.”
He added, “The Middle East and North Africa Financial Action Task Force (MENAFATF) has transformed Iraq from a grey zone to a monitoring zone, which is true evidence that Iraq has made significant progress in enhancing financial inclusion and combating money laundering and terrorist financing.”
He explained, “The need for legal legislation still exists, and we must move forward in the field of human cadres training to keep pace with the rapid digital and technological transformation in the world.”
Regarding the financial inclusion rates achieved by Iraq, Al-Handhal pointed out that, “according to international standards, the current financial inclusion rate in Iraq has exceeded 46% compared to previous years, which is a very significant progress with which we seek to achieve a rate of 90-95% in cooperation with the Central Bank in the near future. The Arab Monetary Fund is also very satisfied with this rate and is monitoring the growth of the banking sector. It considers that Iraq is implementing financial inclusion through a sound mechanism that has contributed to Iraq’s progress in ranking ahead of other countries.”
Global Currency Reset:
THE US TREASURY IS PURSUING CORRUPTION FUNDS… AND THE BAGHDAD GOVERNMENT REMAINS SILENT.
An Imminent Crisis in the Iraqi Financial Sector: Has the Phase of Comprehensive Sanctions Begun?
Iraq’s financial system is facing new signs of turmoil after the disruption of salary payments through some electronic payment companies affiliated with government institutions. While the reasons for the disruption appear technical, informed sources confirm that the matter is linked to US investigations targeting Iraqi banks and companies suspected of involvement in money laundering operations abroad, to countries including Turkey, Iran, and the UAE.
The same sources explained that the US Treasury had granted a grace period to a number of private banks and electronic payment companies to rectify their status and comply with international standards for combating money laundering and terrorist financing, including the Financial Action Task Force (FATF) and Know Your Customer (KYC) requirements. However, many of these entities have not demonstrated sufficient seriousness in resolving their cases, opening the door to the inclusion of new names on US sanctions lists in the near future.
This situation threatens to directly disrupt the financial market’s performance, especially if the sanctions affect active institutions relied upon to pay salaries and finance daily commercial activities. Experts expect liquidity within the market to be significantly affected, amid growing concerns about declining public confidence in local banks. This is particularly true with the increased demand for dollars for external transfers or for storage in anticipation of any unexpected developments. This pressure could lead to a decline in the value of the Iraqi dinar and a rise in the dollar on the parallel market, which would impact the prices of goods and services in an already tense economic environment.
Meanwhile, regulatory authorities within Iraq , led by the Central Bank, are preparing to impose stricter oversight on the activities of banks and money transfer companies in an attempt to avoid further escalation. This is particularly true since some technical reports have revealed clear violations in the performance of some banking institutions, including massive financial transfers abroad without legal documentation, the issuance of credit cards to fictitious accounts, and suspicions of financing prohibited activities or smuggling hard currency.
Despite the bleak outlook, observers believe the crisis could mark a turning point in Iraq’s financial reform process. It has become imperative to restructure the private banking sector and impose strict regulatory classifications, along with a comprehensive review of electronic payment companies to ensure their compliance with international standards, and to open the door to broader partnerships with globally licensed financial service providers.
In this context, the crisis may turn into an opportunity to reshape the financial market in Iraq, starting with cleansing the banking environment of unregulated entities and bolstering international institutions’ confidence in the Iraqi transfer and oversight system. The shift toward a more transparent and governed environment is not a luxury, but rather a necessity imposed by both domestic realities and international pressures.
Iraq today stands at a critical crossroads: either integrate into the global financial system on its terms and ensure gradual stability in its banking sector, or continue sliding toward financial isolation, which will have direct repercussions for the lives of citizens and the country’s economy as a whole.
Iraq’s economic landscape is undergoing significant transformation, spearheaded by proactive measures from the Central Bank of Iraq (CBI).
Recent announcements highlight a series of positive developments aimed at strengthening the national currency, enhancing purchasing power, and bolstering the country’s financial resilience.
One of the foundational steps in improving banking practices across the nation is evident in a recent training workshop held in Erbil. This intensive session focused on “Core Standards for Detecting Counterfeit Currency,” an essential initiative designed to fortify the integrity of Iraq’s financial system and ensure greater security for transactions.
This commitment to meticulous standards underscores the CBI’s dedication to a more robust and trustworthy banking environment.
Beyond operational enhancements, the CBI’s efforts are yielding tangible results in macroeconomic stability. Notably, Iraq has seen inflation rates fall significantly to a commendable 2.2% in the first quarter of 2025. This substantial drop is a strong indicator of improved economic management and directly translates into enhanced purchasing power for Iraqi citizens, making everyday goods and services more affordable.
Further bolstering the stability of the Iraqi Dinar (IQD), the CBI has successfully implemented a 0.6% reduction in currency circulation. This strategic move is designed to control liquidity, manage inflationary pressures, and, critically, support the overarching goal of stabilizing and strengthening the IQD’s value in the market.
Perhaps one of the most compelling signs of Iraq’s growing financial strength is the remarkable surge in its gold reserves. The nation’s gold reserves have climbed by an impressive 19%, now standing at a robust IQD 21.2 trillion. This significant increase not only fortifies Iraq’s foreign reserves but also acts as a crucial hedge against economic volatility, boosting investor confidence and providing a solid foundation for future growth.
These comprehensive measures from the Central Bank of Iraq paint a promising picture for the country’s economic future. From meticulous banking standards to robust national reserves and controlled inflation, Iraq appears poised for increased stability and prosperity.
