Iraqi Private Banks League expresses concern over dollar restrictions

Shafaq News/ Wadeea Noori Al-Handal, chairman of the Iraqi Private Banks League, voiced on Monday the impact of depriving half of Iraqi banks from dealing in the dollar on banking services within Iraq.

Last February, Iraq prohibited local commercial banks from conducting US dollar transactions to combat fraud, money laundering, and other illicit activities involving US currency.

Speaking at the Challenges Facing Arab Banks conference, organized by the Union of Arab Banks, Al-Handal emphasized that "Iraq's engagement with the global community supports economic development, attracts investments, and strengthens the banking sector's role in growth."

"The vision of the Iraqi Banks League is to foster a robust banking sector capable of meeting challenges, financing diverse projects, bolstering the economy, enhancing partnerships, and promoting financial inclusion," Al-Handal stated.

He acknowledged the impact of currency restrictions despite efforts to comply with the Anti-Money Laundering and Combating the Financing of Terrorism policies.

Furthermore, Al-Handal commended the Iraqi government and Central Bank's efforts in resolving issues with the US, particularly following the Prime Minister's Washington visit, which led to a review committee and solutions roadmap.

In turn, the Governor of the Central Bank of Iraq, Ali Al-Alaq, also addressed challenges facing central banks, citing the need to "balance financial stability amid economic shifts like inflation and debt levels."

The Governor highlighted progress in "compliance, risk management, supervision, digital services, and financial inclusion but noted ongoing challenges in meeting international standards, hindering local institutions' global access."