Central Bank of Iraq completes bank reform documentation milestone and launches initiative to let eligible private banks resume cross-border trade services

The Central Bank of Iraq announced it has completed a main milestone in its comprehensive reform of commercial and Islamic banks and branches of foreign banks, after all Iraqi banks submitted the required documents for review against minimum requirements under one of three reform tracks. It also launched an initiative to expand private banks’ capacity to support customers’ international trade by allowing banks that meet specified criteria to resume cross-border transactions and issue documentary credits in multiple foreign currencies. Under the reform process, banks selected one of three paths: continue operating as independent institutions, merge with other banks, or exit the market. The Central Bank will assess each bank’s documentation to determine whether minimum requirements are met, with banks expected to address any identified gaps over the coming months to achieve full compliance with the reform standards. For trade finance, eligible banks will be able to conduct cross-border activity and issue documentary credits in currencies including the euro, Emirati dirham, Chinese yuan and Jordanian dinar, as well as other international currencies.