Iraqi Private Banks Authorized to Conduct International Payments, Remittances and Letters of Credit

Following the first Gulf war in 1991, Saddam Hussein authorized for the first time the formation of private banks in Iraq. From 1992 until the end of the decade, 17 such banks were established. Up until the second Gulf War, however, these banks were prohibited by Saddam from conducting international transactions – including payments, remittances, and letters of credit. Now, as Iraq develops a market-driven banking system, these restrictions are being loosened and the importance of Iraq’s private banks is expected to grow significantly.

An important step was taken on October 28, 2003, when the Central Bank of Iraq authorized Iraq’s private banks to process international payments, remittances and foreign currency letters of credit. This action follows other important steps taken recently to modernize Iraq’s banking system – the establishment of a new national currency, for instance, and the launching of daily foreign exchange auctions by the Central Bank.

Many of Iraq’s private banks are led by highly qualified and experienced officials who have worked previously at the Central Bank as well as state-owned Rafidain and Rasheed Banks. The following private banks are fully prepared to process international payments, remittances and letters of credit. Points of contact at each bank are listed below.

Interested parties are encouraged to contact these banks directly.