Baghdad: The Central Bank Governor announced a new phase for the banking sector: no international sanctions and seven banks are preparing to deal in currencies other than the dollar. Central Bank Governor Nizar Nasser Hussein affirmed that the Iraqi banking sector has overcome the stage of international sanctions, noting the bank’s continued implementation of the banking reform program in coordination with Oliver Wyman. He also revealed that seven Iraqi banks will soon begin dealing in currencies other than the US dollar.
According to National Iraqi News Agency, during a joint meeting on monetary policy development sponsored by the Central Bank, Hussein stated, “There are no more international sanctions on the banking sector, and the reform process is ongoing in coordination with Oliver Wyman.” He indicated that the level of international confidence in the Central Bank of Iraq has become very high.
He added that the seven banks that have been authorized to deal in currencies other than the dollar “may begin operations soon,” a step that will expand channels for foreign banking transactions and enhance the Iraqi banking sector’s ability to connect with the international financial system.
Regarding depositors’ funds, the Central Bank Governor clarified that the majority of depositors’ funds at Al-Taif Bank are guaranteed, emphasizing that the Central Bank will intervene in the event of any shortfall to ensure the protection of depositors’ rights and maintain financial stability.
Regarding investment policy, Hussein indicated that the Central Bank invests in the United States, considering it a safe haven. He noted that the US is the only country that has granted Iraq immunity, while describing the risks of investing in other countries as significant.
Concerning the volume of cash liquidity, he revealed that the issued currency amounts to 107 trillion dinars, while the money circulating in the markets is approaching 40 trillion dinars. He considered these figures to reflect the volume of currency issued and circulating within the Iraqi financial system.
On the subject of the Iraqi currency, Hussein affirmed that the decision to change the currency falls within the Central Bank’s purview, while the project to remove zeros requires legislation from the Council of Representatives. This means that implementing such a step necessitates completing the necessary legal and legislative frameworks.
He pointed out that the current government is managed with a private sector mindset, emphasizing the importance of developing the business environment and supporting economic activity. He also stressed the important role of the media in improving Iraq’s international image and enhancing confidence in its economy and institutions.
In the context of supporting economic activity, the Central Bank Governor announced new lending initiatives targeting important and vital projects, which will contribute to providing financing for productive sectors, stimulating investment, and supporting economic growth.