Iraq Restores Seven Banks to International Currency Networks after US Treasury Deal

The Central Bank of Iraq and the U.S. Treasury Department reached an agreement that restores seven Iraqi banks to correspondent banking channels in foreign currencies, including the U.S. dollar. Prime Minister Ali Al‑Zaidi described the move as a key step in Iraq’s banking reform, expected to bolster confidence in the Iraqi dinar, attract investment and support economic growth.

The restored banks must meet anti‑money‑laundering and counter‑terrorism‑financing standards, after which remaining banks can also regain access to foreign‑currency transactions. The reforms are framed as part of a broader effort to modernize Iraq’s banking sector and integrate it further into the global financial system.