Iraqi premier welcomes US agreement to rehabilitate 7 banks

Iraqi Prime Minister Ali al-Zaidi on Saturday welcomed an agreement between the Central Bank of Iraq and the US Treasury Department to rehabilitate seven Iraqi banks, calling it an "important step" toward reforming the country's banking sector and integrating it into the global financial system.

“The qualification of seven Iraqi banks to resume correspondent banking in foreign currencies, as a step toward restoring their eligibility to conduct transactions in U.S. dollars upon meeting compliance and governance requirements, reflects the success of the government’s financial reform agenda,” al-Zaidi wrote on the US social media company X.

He said the agreement also "strengthens confidence in Iraq's banking sector and opens broader prospects for the national economy and investment."

Al-Zaidi said his government would continue supporting financial and banking reforms and establishing transparency and governance standards to serve Iraq's interests and strengthen its regional and international economic standing.

Economic observers said reconnecting the banks to international correspondent banking networks could help stabilize Iraq's exchange rate, facilitate foreign trade financing and attract investment needed to modernize the country's infrastructure and strengthen its financial security.

On Friday, the US and Iraq signed 48 agreements, memorandums of understanding and economic cooperation deals, as well as a declaration of a comprehensive partnership covering the public and private sectors in both countries.

The deals were signed during al-Zaidi's official visit to Washington.

Al-Zaidi arrived in Washington on Monday as the head of a high-level government delegation on his first foreign trip since taking office in May 2026.

The visit included talks with US President Donald Trump.

On Friday, al-Zaidi highlighted the strength of Iraq's economic partnership with the US during a business conference hosted by the US Chamber of Commerce in Washington.

The event was attended by businesspeople, bankers and representatives of American companies, financial institutions and the industrial and technology sectors.