The Central Bank of Iraq said it is continuing its banking sector reform programme, with Iraqi banks working to complete second-phase requirements focused on stronger compliance and governance, greater transparency and improved institutional performance. The programme is part of the bank’s strategy to strengthen the financial system and align the sector with international standards, while also supporting banks whose access to external transfer channels has been restricted. The central bank is proceeding with the contracting of an independent specialist audit firm to carry out final assessments of banks that have met phase one criteria. The review is intended to confirm compliance with external transfer requirements and relevant international standards, allowing compliant banks to regain access to foreign currency transfer channels including EUR, AED, CNY and other approved international currencies.