Central Bank Governor: Banking Reform Receives Direct Attention from Prime Minister

Baghdad – INA

The Governor of the Central Bank of Iraq, Ali Al-Alaq, said on Tuesday that there is no intention to reduce the value of the Iraqi dinar against the US dollar, while denying the existence of any US ban on Iraqi funds. He also noted that the banking reform file is receiving direct attention from Prime Minister Ali Al-Zaidi.

Speaking to journalists, Al-Alaq said there are “no plans to devalue the dinar against the dollar,” adding that the Central Bank will assist the government in managing the repercussions of any potential closure of the Strait of Hormuz through Treasury bond operations and ensuring salary payments.

He said Iraq’s foreign reserves are currently invested in several countries, stressing that there are no US restrictions on Iraqi assets.

Al-Alaq added that both the US Treasury and the Federal Reserve have praised the Central Bank’s role, noting that it continues to provide US dollars to travelers and traders at the official rate.

He explained that most Iraqi banks have either reached merger or liquidation stages, with only one or two institutions remaining unable to continue operations.

He said the banking reform process is receiving direct follow-up from the Prime Minister, adding that a meeting is expected in the coming days with the Federal Reserve and the US Treasury.

Al-Alaq noted that he is directly supervising banking reform efforts, stating that the concerned banks and the advisory firm have made significant progress in meeting reform requirements.

He added that an upcoming meeting involving Oliver Wyman, the Central Bank of Iraq, the US Federal Reserve, and the US Treasury will pave the way for allowing compliant banks to deal in other foreign currencies.

He rejected claims that the Central Bank is obstructing reforms, saying the institution’s interest lies in returning restricted banks to operation as quickly as possible.

He concluded that the media plays a major role in shaping perceptions, noting that the international community closely monitors statements issued by MPs, analysts, and local media outlets.