Iraqi Central Bank completes transition to International Standard Banking Practice
Shafaq News/ On Wednesday, the Central Bank of Iraq (CBI) announced thesuccessful completion of its program transitioning foreign transfers from itselectronic platform to being handled directly by Iraqi banks through theirinternational correspondent banks.
"This process began with the foreign currency sales and purchasewindow, progressed to the electronic platform for foreign transfers, andculminated in the gradual enhancement of balances during 2024, fully realizedin the final week of the year," the CBI said in a statement.
The statement hailed the achievement as a “fundamental shift alignedwith international best practices to establish a stable and secure financialsystem,” noting that the initiative had received significant internationalsupport and recognition at every stage.
Moreover, the central bank stressed that the new methodology reflectsglobal standards by clearly delineating the roles and responsibilities ofcentral banks from those of commercial banks, "This transition aligns withinternational practices (ISBP) in separating the Central Bank’s supervisoryduties 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 adiverse range of currencies, including the US dollar, Indian rupee, Chineseyuan, 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 transferoperations, adopting methods consistent with global practices. It marks a newchapter in Iraq’s financial relationships regionally and internationally,supporting government efforts to expand economic ties and foster investmentopportunities."
In conclusion, the CBI expressed its commitment to assisting Iraqi banksin improving their governance, compliance, and anti-money laundering measures,"We are fully prepared to support all Iraqi banks in advancing theirperformance, thereby bolstering international and regional trust in them andcontributing to strengthening Iraq’s banking system and economy as a whole.”
