Shafaq News- Washington/ Baghdad
Seven Iraqi banks have been cleared to resumecorrespondent banking relationships in foreign currencies, after meetingcompliance and governance requirements, which Prime Minister Ali Al-Zaidi onSaturday hailed as “an important step” in Iraq’s banking reform program.
Al-Zaidi said the agreement between the Central Bankof Iraq and the US Treasury Department would “strengthen confidence” in Iraqilenders, attract investment, and support economic growth.
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The step will renew US dollar transactions after USauthorities had restricted Iraqi lenders for years over compliance concerns. According to the Eco Iraq economic observatory, 35 of Iraq’s 72 operating bankshad lost access to US dollar transactions by August 2025. The affectedinstitutions included Al-Janoob Islamic Bank, one of the country’s largestprivate lenders, previously chaired by Al-Zaidi before becoming prime minister.
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