The Central Bank of Iraq has signed a banking agreement with Emirates Islamic Bank, an Islamic bank rated A+ by Fitch, setting out cooperation intended to strengthen Islamic banking development and broaden cross-border services for Iraqi banks. The arrangement covers exchanging expertise on developing the Islamic banking sector, providing payment services in UAE dirhams for Iraqi banks and expanding their correspondent account networks, and jointly developing a mechanism that would allow Iraqi banks’ retail customers to invest partially in Islamic sukuk issued by Emirates Islamic Bank or other United Arab Emirates issuers with a similar credit rating, under the Central Bank of Iraq’s supervision and support. The announcement follows the Central Bank of Iraq’s August 2024 move to start a new phase of external transfer operations, including agreed mechanisms to regulate dealings in the euro, Chinese yuan, Indian rupee, UAE dirham, and other international currencies.
Central Bank of Iraq 2025-02-27
Central Bank of Iraq signs agreement with Emirates Islamic Bank to expand AED payments and enable retail sukuk investment
The Central Bank of Iraq has signed an agreement with Emirates Islamic Bank to enhance Islamic banking development and expand cross-border services for Iraqi banks, including expertise exchange, payment services in UAE dirhams, and investment opportunities in Islamic sukuk. This follows the Central Bank's August 2024 initiative to regulate external currency dealings.