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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 reduced 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
may contact these banks directly.
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