Shafaq News– Baghdad

The Central Bank of Iraq (CBI) has imposed stricter capital, liquidity, and disclosure requirements on banks seeking to trade foreign currencies other than the US dollar, the Eco Iraq Observatory reported on Saturday.

In a statement, Eco Iraq explained that under the new rules, banks wishing to deal in currencies such as the euro, Chinese yuan, or UAE dirham must hold a minimum capital of 300 billion Iraqi dinars (about $205M) and submit a binding plan to raise capital to 400 billion dinars (around $275M) by the end of 2028.

The requirements were detailed in a CBI document issued as part of a broader banking sector reform program. Banks must also demonstrate sufficient and stable liquidity in line with international standards, including liquidity coverage and net stable funding ratios, and fully disclose ownership structures and related-party links.

The move comes as a large portion of Iraq’s banking sector remains restricted from dollar transactions. Eco Iraq has previously reported that 35 of Iraq’s 72 licensed banks are either under US sanctions or suspended from dollar trading as a regulatory measure to enforce transparency and compliance.

In recent months, the CBI has also tightened rules on commercial invoices and foreign trade documentation, part of efforts to curb money laundering and align Iraq’s financial system with international standards.

The Central Bank has not said how many banks currently meet the new criteria.

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