Prime Minister’s Advisor: The Central Bank is leading a comprehensive shift towards reform.
The Prime Minister’s Financial Advisor, Mazhar Mohammed Salih, confirmed on Thursday that Iraq’s commitment to international standards paves the way for the return of dollar transactions, attracting foreign investment, and expanding financial inclusion. He stressed that the path of banking reform is ongoing and irreversible. Salih told the official agency, “Iraq’s commitment to international standards and banking transparency means that the Iraqi financial system has entered a phase of radical reform, which enhances international confidence and qualifies it to be an active player in the global economy.” He pointed out that “the most prominent gains are not limited to the return of dollar transactions to national banks, but also include attracting investment and expanding financial inclusion.”
He added, “Adherence to international standards requires that banking institutions adhere to anti-money laundering and counter-terrorism financing rules, implement transparent accounting and oversight systems, and digitally transform the banking infrastructure, including electronic payment systems and unified financial reports.” He continued, “This also includes openness to sound international financial services by contracting with global companies to develop banking systems, particularly financial auditing and financial technology companies.” He added, “This commitment places Iraq on the map of the global financial system and gives it an opportunity to integrate with international correspondent banks.”
He also explained that “the gains that will benefit Iraq will also lead to the restoration of dollar transactions with international banks, after some Iraqi banks were deprived of them due to poor compliance issues. This will also attract foreign investment, as investors seek a transparent and secure financial environment. It will also enhance financial inclusion by integrating broad segments of citizens into the banking system through digital services. This will also improve Iraq’s credit rating, which will positively impact its ability to obtain international financing on better terms.”
He also pointed out that “enhancing confidence in the Iraqi banking system is achieved through the confidence of international banks that will deal with the modernized banking system, which is compatible with international standards, which opens the door for Iraq to deal with correspondent banks in Europe and America. The Iraqi citizen’s confidence in the modernized banks is also increasing, and he begins to feel safe dealing with them, especially with the development of electronic services and the reduction of risks, in addition to the confidence of international companies contracting with Iraq, which are looking for a transparent financial environment that guarantees the integrity of transfers and contracts.”
He pointed out that “the level of progress in the field of banking reform, sponsored by Prime Minister Mohammed Shia al-Sudani within the government’s program and its implementation, and in cooperation with the Central Bank of Iraq, came in accordance with the 2025 Banking Reform Document.”
He stated, “The Central Bank of Iraq is leading a comprehensive shift towards reform, including increasing capital in agreement with the banking system and implementing comprehensive governance.”
He also explained that “the development of modern digital systems is no longer an option, but a necessity. This has already begun in some leading banks, despite ongoing challenges, such as historically weak trust and varying levels of preparedness among banks.” He emphasized that “the reform path is clear and irreversible.”
Burathanews.com