By John Lee.
The Iraqi Private Banks League (IPBL) has welcomed the recent announcement that seven Iraqi private banks are to regain access to foreign currency correspondent banking channels (excluding the US dollar).
The announcement followed high-level talks between the Central Bank of Iraq (CBI) and officials at the US Treasury.
An IBPL statement described it as a significant milestone in the first phase of the CBI's banking sector reform and re-licensing programme.
According to the Association, the development is expected to support stability in the value of the Iraqi dinar and strengthen Iraqi banks' capacity to meet foreign trade requirements and finance the domestic market. The talks took place in the context of Prime Minister Ali al-Zaidi's official visit to the United States.
It noted that other banks still subject to restrictions will also be able to operate in non-dollar foreign currencies once they complete the requirements of the first phase. It called on those banks to intensify their efforts and comply fully with CBI standards, including completing all anti-money laundering and counter-terrorism financing procedures.
The Association reaffirmed its full support for the CBI's broader strategy to modernise and strengthen the banking sector and integrate it into the global financial system.
(Source: Iraqi Private Banks League)
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