CBI Reveals Assurances in Banking Reform Plan

During a session attended by a selected group of experts and specialists, His Excellency the Governor of CBI, Mr. Ali Mohsen Al-Alaq, presented a comprehensive overview of the banking reform process and upcoming structural plans, emphasizing that rebuilding the banking sector is the cornerstone of the bank's work at this stage.

His Excellency explained that the contract with Oliver Wyman (O&W) came after the ban imposed on several Iraqi banks regarding dollar transactions, with the aim of implementing deep and comprehensive reforms to ensure that banking institutions' commitment to international standards. The governor revealed assurances regarding the return of these banks to normal operations after the completion of the required reform phases.

His Excellency indicated that all Iraqi banks have signed the reform document, confirming that compliant banks will be granted the possibility to conduct transactions in other currencies in a phased manner. He indicated that international bodies are closely monitoring the progress of the banking reform process.

Regarding digital transformation, the Governor confirmed that the digital dinar project is underway, but it requires time and a comprehensive infrastructure to ensure its optimal launch. He also reiterated his commitment to maintaining overall price stability by keeping inflation at low levels through a stable official exchange rate, which he described as a major success of monetary policy. He emphasized that devaluing the dinar would have negative repercussions on this stability, harming broad segments of the citizens with limited incomes and weakening confidence in the national currency.

His Excellency stressed the need to avoid using the exchange rate as a tool to address the structural deficit, which requires structural reforms aimed at maximizing domestic revenues by leveraging the vast and currently untapped opportunities, controlling expenditures, diversifying the economy, and supporting the government's efforts in this regard.

 

Central Bank of Iraq

Media Office