Official Statement ••••• Following the official visit of Prime Minister Ali Faleh Al-Zaidi and his meeting with the President of the United States, and as part of the ongoing efforts to strengthen bilateral relations between the two countries, the Governor of the Central Bank of Iraq held a series of high-level meetings with officials from the U.S. Department of the Treasury. These meetings resulted in a mutual understanding to restore restricted Iraqi banks’ access to non-U.S.-dollar correspondent banking channels, upon their fulfillment of the approved compliance and governance standards and requirements and completion of the first phase of the banking sector reform and relicensing program implemented by the Central Bank of Iraq. Banks that successfully complete the remaining reform and relicensing requirements will also regain their eligibility to conduct transactions in U.S. dollars upon fulfilling all relevant regulatory procedures and requirements. This understanding comes within the framework of the Central Bank of Iraq’s comprehensive strategy to modernize the banking sector, enhance its efficiency, and improve its competitiveness, thereby supporting its full integration into the global financial system, reinforcing confidence in Iraq’s banking sector, and creating the conditions necessary for greater engagement with international financial institutions. The Central Bank of Iraq also reaffirmed its commitment to continuing the comprehensive assessment of all Iraqi banks and strengthening its regulatory and oversight framework to ensure sustained compliance with international standards and the requirements of governance, risk management, and anti-money laundering and counter-terrorism financing. The Central Bank will continue to take the appropriate regulatory and supervisory measures against any institution that fails to meet these standards, including restricting or suspending its access to international financial channels or revoking its license whenever necessary, in accordance with the applicable legal and regulatory framework. The Governor of the Central Bank of Iraq further stated that seven Iraqi banks are currently qualified to resume operations through non-U.S.-dollar correspondent banking channels (other foreign currencies). These banks will subsequently become eligible to conduct transactions in U.S. dollars after successfully completing the remaining stages of the compliance and governance requirements. ••••• Media Office of the Prime Minister July 18, 2026