Source: Central Bank of Iraq delegation visits US to discuss banking sector

Shafaq News/ A delegation from the Central Bank of Iraq (CBI) is currently in the United States to review the state of Iraq's banking sector, a source disclosed on Thursday.

Led by Central Bank Governor Ali al-Alaq, the delegation arrived on August 26 and included several senior officials. The talks focus on the evolving situation within Iraq's banking industry and the restrictions placed on using the US dollar by numerous private Iraqi banks.

"The discussions include the potential elimination of the current currency platform at the start of next year, with a shift towards relying on correspondent banks. This change could impose additional constraints on private Iraqi banks and potentially reduce competition in favor of Jordanian banks with established American correspondent relationships." The source explained.

The Central Bank of Iraq is also nearing a contract with Oliver Wyman, a consulting firm, to conduct a study aimed at reforming the Iraqi banking sector. The findings of this study are expected to guide future reforms, he added.