Iraq’s Banking Sector Sees Advancement with Direct Transfer Operations
The Central Bank of Iraq’s Governor Ali al-Alaq announced that 20 Iraqi banks are now executing direct transfer operations in eight foreign currencies. Following positive discussions with the US Federal Bank and Treasury, these banks are transitioning towards enhanced international practices. Al-Alaq indicated that additional banks are working toward compliance to join this framework, receiving praise for their cash dollar sales mechanisms.
On Tuesday, the Governor of the Central Bank of Iraq, Ali al-Alaq, announced that 20 Iraqi banks are now conducting direct transfer operations in eight foreign currencies. He mentioned that recent quarterly discussions with the US Federal Bank and the Treasury Department in Dubai were well-received, leading to praise for the Central Bank’s efforts to modernize the foreign remittance system. Al-Alaq emphasized that this transformation marks the first of its kind in Iraq, evolving from a system relying on windows and platforms to utilizing correspondent banks.
Al-Alaq elaborated that the 20 banks are directly engaging with international correspondent banks under the newly implemented system. Other banks that have not yet adapted are actively working to meet the necessary criteria to qualify for participation in international transfers, in collaboration with an international consulting firm. He underscored that this initiative is not accompanied by any new sanctions but rather has received commendations from international bodies for their cash dollar sales mechanisms.
Furthermore, Al-Alaq highlighted the importance of showcasing these successes to enhance the image of the Iraqi banking sector, which could positively influence relationships with international financial institutions. This emphasis on transparency and organization speaks to the relevance of these developments within Iraq’s transition towards a more robust banking framework.
In conclusion, the announcement by Governor Ali al-Alaq reveals significant progress in the Iraqi banking sector, with 20 banks now engaging in direct foreign transfer operations. This transition marks a pivotal moment in Iraq’s financial services, underpinned by international collaboration and modernization efforts. The continued focus on improving the banking system is expected to foster greater trust and engagement from international financial institutions.
Original Source: ina.iq
