Brussels: 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.

According to Anadolu Agency, al-Zaidi described the qualification of these banks to resume correspondent banking in foreign currencies as a significant achievement. This move is seen as a step toward restoring the banks' eligibility to conduct transactions in U.S. dollars, contingent upon meeting compliance and governance requirements. Al-Zaidi expressed that this development aligns with the government's financial reform agenda.

He further stated that the agreement would "strengthen confidence in Iraq's banking sector and open broader prospects for the national economy and investment." Al-Zaidi emphasized his government's commitment to supporting financial and banking reforms, as well as establishing transparency and governance standards to bolster Iraq's economic interests.

Economic observers have noted that reintegrating these banks into international correspondent banking networks could play a crucial role in stabilizing Iraq's exchange rate, facilitating foreign trade financing, and attracting the investment needed to modernize the country's infrastructure and enhance its financial security.

On Friday, the US and Iraq signed 48 agreements, memorandums of understanding, and economic cooperation deals, alongside a declaration of a comprehensive partnership encompassing public and private sectors in both countries. These agreements were signed during al-Zaidi's official visit to Washington.

Al-Zaidi, who arrived in Washington on Monday at the head of a high-level government delegation, is on his first foreign trip since assuming office in May 2026. His visit included discussions with US President Donald Trump. On Friday, al-Zaidi underscored the strength of Iraq's economic partnership with the US during a business conference hosted by the US Chamber of Commerce in Washington, which saw participation from businesspeople, bankers, and representatives of American companies, financial institutions, and the industrial and technology sectors.