Baghdad: An economic expert told Nina that the banking agreements signed by Al-Zidi have begun their implementation phases. Economic expert Dirgham Muhammad Ali confirmed that Prime Minister Ali al-Zaidi’s agreements with the US Federal Reserve are now entering the implementation phase.

According to National Iraqi News Agency, Muhammad Ali stated that joint meetings are currently being held between the Governor of the Central Bank and the US Treasury Department to finalize the implementation steps for these agreements. He highlighted that these meetings have confirmed the potential for Iraqi banks to be reintegrated into correspondent banking channels for transactions other than the US dollar. This reintegration is contingent upon the completion of the first phase of the banking reform process being implemented by the Central Bank of Iraq, with the requirement that banks meet the necessary compliance and governance standards.

Muhammad Ali indicated that the first phase of the banking reform process is expected to conclude this summer. To date, none of the sanctioned banks have regained the ability to conduct foreign currency transactions. He further explained that banks completing the banking reform and relicensing process successfully-including a satisfactory third-party audit of their compliance systems, attracting a qualified institutional investor, and meeting international fit and proper standards-will be eligible to conduct US dollar transactions upon completion of the process. Furthermore, all banks authorized to deal in international currencies will have the opportunity to establish correspondent banking relationships with international financial institutions.