Iraq-UK central bank cooperation took center stage as Iraq’s Central Bank Governor, Ali Mohsen Al-Alaq, met with Bank of England Governor Andrew Bailey in London. The discussions focused on strengthening monetary policy, exploring digital finance, and modernizing currency management.
Al-Alaq emphasized Iraq’s commitment to financial stability. He noted that inflation has fallen below two percent, reaching the lowest level in Iraq’s history. This achievement underscores the success of Iraq-UK central bank cooperation in shaping effective economic strategies.
During the meeting, both sides explored ways to modernize Iraq’s banknotes. Al-Alaq expressed Iraq’s interest in learning from the Bank of England’s expertise. The discussion also highlighted ongoing studies on digital currencies, signaling Iraq’s readiness to embrace financial innovation.
Foreign reserve management was another key topic. Iraq holds part of its reserves in the Bank of England’s vaults, and both parties reviewed strategies to enhance efficiency. Al-Alaq further requested support from the UK to help Iraq join the Bank for International Settlements in Switzerland. He stressed the importance of the Bank of England’s role on the BIS board in facilitating this process.
The meeting included a forward-looking approach to Iraq-UK central bank cooperation. Both sides agreed to exchange technical knowledge and share best practices. Digital transformation initiatives were highlighted as a vital component of future collaboration.
Al-Alaq stated that Iraq aims to strengthen ties with international financial institutions. By leveraging the Bank of England’s experience, Iraq plans to enhance its monetary policy tools and modernize banking infrastructure.
Experts suggest that Iraq-UK central bank cooperation could attract foreign investment and boost confidence in Iraq’s financial system. The partnership also supports the country’s ambition to advance in global finance, including currency innovation and efficient reserve management.
In conclusion, the London talks reinforced Iraq’s strategy to maintain financial stability and drive modernization. Both central banks committed to ongoing collaboration, focusing on digital currencies, monetary policy, and international integration.
