Iraqi Banks Reintegrate into US Dollar System Amid Banking Sector Reforms

The Central Bank of Iraq (CBI) has secured an agreement to reintegrate seven restricted Iraqi banks into the US dollar system, following a visit by Prime Minister Ali Al-Zaidi to Washington.

The deal with the US Treasury Department was reached as part of the CBI's efforts to restructure Iraq's banking sector, which has been plagued by allegations of laundering and terror funding.

According to the CBI, the seven banks will be reinstated provided they meet established standards and requirements in compliance and governance, and complete the first phase of the banking sector reform and relicensing programme.

An Iraqi economist, Duraid Al-Anzi, played down the significance of the agreement, stating that it would not have a tangible impact on the economy or the dinar exchange rate unless accompanied by comprehensive banking reforms.