Peregraf - Iraqi Prime Minister Ali al-Zaidi said on July 18, 2026, that Baghdad and the U.S. Department of the Treasury have reached an understanding he described as an important step toward reforming Iraq's banking sector and integrating it further into the global financial system. Al-Zaidi made the remarks in a post on X.
Al-Zaidi, an independent politician backed by Iraq's Coordination Framework alliance who has served as prime minister since May 14, 2026, said seven Iraqi banks have been qualified to resume correspondent banking relationships in foreign currencies, restoring their ability to conduct U.S. dollar transactions pending compliance and governance requirements. He did not name the banks or provide supporting documentation.
The Central Bank of Iraq's most recently published list, dated February 23, 2026, and amended February 26, named 28 banks restricted from dealing in U.S. dollars and four blacklisted outright, including Iran's Bank Melli and Parsian Bank. No CBI statement identifying the seven newly qualified banks referenced by al-Zaidi could be independently located as of this writing, and no more recent CBI list update could be found either.
Al-Zaidi's own past business ties are relevant context. According to international reports, he previously chaired Al-Janoob Islamic Bank for Investment and Finance until 2019. The bank appeared on the CBI's most recently published restricted-banks list, from February 2026 — the most recent such list Peregraf could locate. Peregraf could not confirm whether this restriction remains in effect as of July 2026. Some reports have described al-Zaidi as an owner of the bank rather than merely a former chairman.
Al-Janoob Islamic Bank was barred from U.S. dollar transactions in 2024 over allegations, reported internationally, of sanctions evasion and involvement in moving funds tied to armed groups backed by Iran. Al-Zaidi has not publicly addressed these allegations regarding the bank in connection with his current statement on banking reform.
Al-Zaidi chairs the National Holding Company, a conglomerate he founded in 2017 with interests spanning banking, agriculture, real estate, logistics, education, and media. He holds bachelor's degrees in law and finance and a master's degree in banking and finance, and is a member of the Iraqi Bar Association.
The prime minister said his government would continue supporting financial and banking reforms and reinforcing transparency and good governance, describing the effort as serving Iraq's interests and strengthening its regional and international economic standing. The U.S. Treasury Department had not issued a public statement confirming the terms described by al-Zaidi as of publication.