Sources: US requests CBI to merge dollar-banned banks and close distressed banks

Shafaq News/ The Central Bank of Iraq (CBI) is facing new demands from the United States regarding the dollar-banned and distressed banks, sources revealed on Tuesday.

According to sources, both the US Treasury and the Federal Reserve have instructed the Central Bank of Iraq to merge banks that are prohibited from dealing in dollars and to close certain distressed banks.

The sources noted that the Central Bank of Iraq is expected to implement swift actions in this regard. “This move aims to stabilize the banking sector and improve the exchange rate.”

“In response to Washington’s demands, the Central Bank has enlisted an international consultancy to devise a comprehensive plan, which will encompass the merging and closure of banks.” The sources said.

The consultancy, recommended by US authorities, is reported to have functions similar to those of K2, though its name and additional details have not been disclosed.