Iraqi Central Bank completes transition to International Standard Banking Practice

Shafaq News/ On Wednesday, the Central Bank of Iraq (CBI) announced the successful completion of its program transitioning foreign transfers from its electronic platform to being handled directly by Iraqi banks through their international correspondent banks.

"This process began with the foreign currency sales and purchase window, progressed to the electronic platform for foreign transfers, and culminated in the gradual enhancement of balances during 2024, fully realized in the final week of the year," the CBI said in a statement.

The statement hailed the achievement as a “fundamental shift aligned with international best practices to establish a stable and secure financial system,” noting that the initiative had received significant international support and recognition at every stage.

Moreover, the central bank stressed that the new methodology reflects global standards by clearly delineating the roles and responsibilities of central banks from those of commercial banks, "This transition aligns with international practices (ISBP) in separating the Central Bank’s supervisory duties from the commitments and roles of commercial banks."

The bank also announced its continued support for Iraqi banks, confirming it will bolster their balances in correspondent banks using a diverse range of currencies, including the US dollar, Indian rupee, Chinese yuan, euro, UAE dirham, Saudi riyal, and Jordanian dinar.

Highlighting the broader implications of this move, the statement noted, "This achievement enhances the efficiency and security of foreign transfer operations, adopting methods consistent with global practices. It marks a new chapter in Iraq’s financial relationships regionally and internationally, supporting government efforts to expand economic ties and foster investment opportunities."

In conclusion, the CBI expressed its commitment to assisting Iraqi banks in improving their governance, compliance, and anti-money laundering measures, "We are fully prepared to support all Iraqi banks in advancing their performance, thereby bolstering international and regional trust in them and contributing to strengthening Iraq’s banking system and economy as a whole.”