Central Bank of Iraq CBI - News Update August 2025
The Central Bank of Iraq is making headlines with major reforms aimed at overhauling the country’s banking sector. One of the biggest changes requires Iraqi banks to raise their capital to 400 billion dinars, about 306 million U.S. dollars, by the end of 2025. While this move is designed to strengthen the banking system, many experts say the goal is unrealistic given Iraq’s economic and political challenges, along with sanctions and weak financial structures.
At the same time, Iraq is working to improve regional cooperation. A high-level delegation recently met with the Central Bank of Egypt to share experiences in digital banking, financial inclusion, and anti-money laundering. Egypt’s success in digital transformation is being used as a model for Iraq’s future growth.
The Central Bank is also modernizing its operations. It has launched a new Security Permits Platform to safeguard cash transport and financial operations, and it continues to play a big role in stabilizing currency flows through its daily dollar auctions. In just the first quarter of 2025, the bank sold nearly 21 billion U.S. dollars while purchasing about 16.5 billion to balance liquidity.
Beyond finance, the Central Bank is supporting Iraq’s communities. Through its “Afaaq” program, it is providing financial resources and training to displaced families and host communities in areas like Nineveh and Duhok, showing a commitment not just to monetary stability but also to social rebuilding.
In short, Iraq’s Central Bank is taking bold steps—from demanding new capital standards and digital partnerships, to security upgrades and humanitarian programs. Whether these ambitious changes succeed will depend on how Iraq navigates its internal challenges and strengthens ties abroad.
