The International Monetary Fund’s (IMF) report for the current year’s Article IV consultations has praised the Iraqi government, particularly the monetary policy led by the Central Bank of Iraq. According to a statement from the media office of the Central Bank of Iraq, several measures were taken by the bank to stabilize the national currency and control monetary inflation.
These measures included raising interest rates on monetary policy tools and increasing mandatory reserve requirements for banks. These steps were effective in reducing inflationary pressures and creating a more stable economic environment.
The report also emphasized important reforms in the banking sector, such as increasing bank capital and promoting mergers between small banks to strengthen the banking sector’s efficiency and flexibility in the face of economic shocks. Moreover, Iraq implemented new compliance measures to improve transparency in cross-border financial transactions and launched an electronic platform to enhance financial transfer integrity in line with international banking standards.
In addition, the report highlighted the Central Bank of Iraq’s role in expanding correspondent banking relationships to facilitate international trade financing operations smoothly. These efforts are aimed at improving economic stability and promoting growth in Iraq’s economy. The IMF’s positive assessment reflects progress made by the Iraqi government and Central Bank in implementing effective monetary and banking policies to support economic development.
