On Thursday, an informed source disclosed that the Central Bank of Iraq is currently traveling to the United States of America unannounced to discuss recent developments in the Iraqi banking sector.
According to the source, a delegation from the Central Bank of Iraq, led by the Governor of the Central Bank, Ali Al-Alaq, as well as a number of general managers, has been in the United States of America since the 26th of this month to discuss developments in the banking sector as well as the restrictions on the use of the dollar that a large number of private banks have imposed.
He mentioned that the Central Bank delegation discussed canceling the platform at the beginning of next year and relying on correspondent banks, which would completely eliminate competition in favor of Jordanian banks with American correspondent banks and increase restrictions on Iraqi private banks.
According to the source, the Central Bank is close to signing a contract with Oliver Wyman, the Iraqi Development Road’s consulting firm, to conduct a study on reforming the Iraqi banking sector. This will allow the study to be approved by the Central Bank in the near future and be regarded as a roadmap for reforming the private banking sector.
On the other hand, the absence of an announcement regarding the Iraqi Central Bank’s visit to the United States surprised a number of economists, particularly considering that it occurs at a crucial moment.
