Al-Alaq: 20 Iraqi Banks Implement Direct Transfers in Multiple Currencies

The Central Bank of Iraq has confirmed that 20 Iraqi banks have begun practicing direct transfer operations in eight foreign currencies. This initiative follows positive evaluations from international financial bodies during recent meetings in Dubai. Al-Alaq noted the shift from traditional banking practices to modernized systems utilizing international correspondents, emphasizing the significance of these developments for the future of Iraq’s banking sector.

Central Bank of Iraq Governor Ali al-Alaq announced that 20 Iraqi banks are now engaged in direct transfer operations utilizing eight foreign currencies. He emphasized that these developments follow constructive quarterly meetings with the US Federal Bank and Treasury, held in Dubai, which recognized the Central Bank’s initiatives to enhance the foreign remittance system by aligning with international standards.

Al-Alaq elaborated that this shift represents a landmark change in Iraq’s banking practices, transitioning from traditional methods to a modernized platform and the use of correspondent banks. Currently, the 20 banks operate under a new system with international counterparts, demonstrating a significant advancement in the Iraqi banking sector.

Other banks outside this structure are actively working towards qualification based on established criteria, in partnership with an international consulting firm to ensure compliance. Al-Alaq clarified that there are no new sanctions affecting these operations; instead, international organizations have expressed commendation for their mechanisms, particularly in cash dollar sales.

He underscored the importance of showcasing these achievements to enhance the perception of Iraq’s banking reforms, which will positively influence the relationship between Iraqi banks and international financial institutions. The ongoing improvements are integral for fostering a robust banking environment in Iraq.

In conclusion, the direct transfer operations initiated by 20 Iraqi banks mark a transformative step towards modernization in the banking sector. With positive feedback from international entities and ongoing efforts to integrate more banks into the system, the outlook for Iraqi banking appears optimistic. The success of this initiative reinforces Iraq’s commitment to transparency and international practices in financial dealings.

Original Source: ina.iq