The Central Bank of Iraq announced it has fully implemented its programme to shift external transfer activity from an electronic platform to Iraqi banks executing transfers through their foreign correspondent banks, with the transition completed in the last week of 2024. The change followed a staged process that began with the foreign currency buying and selling window, moved to an electronic platform for external transfers, and concluded with the gradual strengthening of Iraqi banks’ correspondent banking balances during 2024. The new methodology is positioned as aligning with international practice by separating the Central Bank’s role from commercial banks’ obligations in external transfers, and the Central Bank will continue strengthening banks’ balances with correspondent banks in USD and other currencies including the Indian rupee, Chinese yuan, euro, UAE dirham, Saudi riyal and Jordanian dinar. The Central Bank also stated it is ready to support Iraqi banks seeking to improve governance and compliance and to combat money laundering to reinforce confidence among international and regional banks.
Central Bank of Iraq 2025-01-01
Central Bank of Iraq completes transition of external transfers to Iraqi banks via foreign correspondent banks
The Central Bank of Iraq has completed its transition of external transfer activities from an electronic platform to Iraqi banks using foreign correspondent banks, aligning with international practices. The Central Bank will continue to support Iraqi banks in enhancing governance, compliance, and anti-money laundering efforts to bolster confidence among international and regional banks.