Central Bank of Iraq
Iraq's central bank, responsible for monetary policy, currency issuance, foreign reserves, and oversight of the banking and payments systems.
Last updated November 4, 2026
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Overview
The Central Bank of Iraq (CBI) is Iraq's monetary authority and the institution responsible for the Iraqi dinar, the country's official currency. Established in 1947 as the National Bank of Iraq, it took over formal currency issuance from the Iraq Currency Board in 1949. Its modern legal status derives principally from the Central Bank of Iraq Law of 2004, enacted after the fall of Saddam Hussein's government and the destruction and looting that accompanied the 2003 invasion. The bank's central objectives are to maintain domestic price stability and support a stable, competitive, market-based financial system. Its functions include implementing monetary and exchange-rate policy, issuing and managing banknotes and coins, holding and administering Iraq's official gold and foreign-exchange reserves, licensing and supervising banks, and establishing and overseeing payment systems. It also performs related transactions and functions permitted by Iraqi law. Through these responsibilities, the CBI occupies a critical position in an economy heavily influenced by oil revenues, imported goods, public expenditure, and exchange-rate conditions. The institution's early history reflects Iraq's transition from British Mandate administration to national monetary management. Before the central bank was created, the Iraq Currency Board was established in London in 1931 to issue the Iraqi dinar and maintain reserves. The board followed a conservative reserve policy and maintained a close relationship between the dinar and the British pound. The National Bank of Iraq subsequently became the country's principal currency issuer, replacing the currency board in 1949. For much of the later twentieth century, monetary management was shaped by authoritarian government, economic controls, international isolation, and repeated crises. The dinar became vulnerable to severe instability and was used by Saddam Hussein's government as an instrument of economic control. During the 2003 invasion, nearly US$1 billion in cash was removed from the bank in an operation ordered by Saddam Hussein and supervised by his son Qusay Hussein, according to accounts cited in reference materials. The bank was later found heavily damaged and looted. The 2004 law reconstituted the CBI as an independent central bank with authorised capital of 100 billion Iraqi dinars. The law provides that the bank's capital is wholly owned by the Iraqi state and cannot be transferred. Iraq's constitution describes the central bank as financially and administratively independent and places responsibility for it before the Council of Representatives, although a 2010 Supreme Court ruling held that the bank should be subject to supervision by the Council of Ministers. That ruling prompted concern from then-governor Sinan Al Shabibi that institutional independence could be weakened. The CBI operates from Baghdad and has branches in Basrah, Mosul, Sulaimaniyah, and Erbil. Its headquarters, completed in 1985, was designed by Danish architects Dissing+Weitling. In the post-2003 period, the bank also pursued a new Baghdad headquarters designed by Zaha Hadid Architects, reflecting an effort to create a major institutional landmark for Iraq's rebuilt financial system. The bank has faced substantial operational and security challenges. In 2008, its premises were reported to have been affected by a fire. During the Battle of Mosul in 2013, Islamic State militants looted the bank's regional branch in Mosul, reportedly taking more than US$4.29 million. These incidents illustrate the wider security environment in which the CBI has had to maintain currency circulation, banking supervision, and payments infrastructure. The institution's importance increased as oil revenues strengthened foreign reserves and improved Iraq's ability to stabilize its currency, service external obligations, and cover imports. Its continuing role is to preserve monetary and financial stability while developing a more efficient banking sector and payment system within Iraq's legal and political framework.
History
Iraq's modern monetary institutions developed after the dissolution of the Ottoman Empire and the establishment of the British Mandate of Mesopotamia. During the early mandate period, currency administration remained closely connected to British financial arrangements. In 1931, the Iraq Currency Board was established in London to issue the Iraqi dinar and maintain its reserves. The board followed a conservative policy, holding substantial reserves behind the currency and maintaining a close link with the British pound. The National Bank of Iraq was established in 1947 and began formally issuing Iraqi currency after the Iraq Currency Board was dissolved in 1949. The institution is the predecessor of the modern Central Bank of Iraq. In the decades that followed, monetary administration was affected by political centralization, economic mismanagement, coercive controls, wars, sanctions, and the changing value and convertibility of the dinar. Under Saddam Hussein, currency and monetary mechanisms were also used as tools of state control. A major rupture occurred in March 2003, immediately before the United States-led invasion. Nearly US$1 billion was taken from the Central Bank in a cash withdrawal associated with an order attributed to Saddam Hussein. After the Battle of Baghdad, inspectors from the United States Department of the Treasury and the Coalition Provisional Authority found the bank badly damaged and affected by extensive looting. The Central Bank of Iraq was re-established as an independent central bank under the 2004 Central Bank of Iraq Law. The law set authorised capital at 100 billion Iraqi dinars, provided that the bank's capital would be wholly owned by the Iraqi state, and stated that it could not be transferred. The post-2003 institution was assigned responsibility for domestic price stability, the Iraqi currency, monetary and exchange-rate policy, official reserves, banking supervision, and payment systems. The Iraqi constitution describes the CBI as a financially and administratively independent institution accountable to the Council of Representatives. In January 2010, however, the Supreme Court ruled that it should fall under the supervision of the Council of Ministers. The ruling generated debate over the appropriate relationship between the bank and the executive branch. Governor Sinan Al Shabibi publicly cautioned that excessive supervision could compromise the independence needed for monetary policy. The CBI's operational network includes its Baghdad headquarters and branches in Basrah, Mosul, Sulaimaniyah, and Erbil. In 2010, measures were reported to be underway to integrate these branches more closely with the Baghdad headquarters. The bank's headquarters building was completed in 1985 and designed by Dissing+Weitling. Its inward-facing architecture uses a central courtyard surrounded by offices and a reinforced-concrete exterior clad in marble. The bank also pursued a new headquarters project after 2010. Baghdad-born architect Zaha Hadid was appointed to design the building, and in February 2012 she joined Governor Sinan Al Shabibi at a London ceremony where the bank and Zaha Hadid Architects signed an agreement covering the design stages. Security threats continued to affect the institution. A fire was reported at the bank in January 2008, and Islamic State militants looted the Mosul branch during the 2013 Battle of Mosul, reportedly taking more than US$4.29 million. These events occurred alongside the broader challenge of maintaining financial infrastructure during prolonged conflict. The CBI's financial position improved during periods of higher oil income. Reference material reports that foreign-exchange reserves approached US$67 billion in September 2012, while total assets exceeded 57 trillion Iraqi dinars in December 2009. These figures are historical and should not be treated as current measures. The bank's continuing mandate is to preserve price and currency stability, manage official reserves, supervise banks, and support a sound market-based financial system in Iraq.
- 2013
Mosul branch looted
[1]ISIL militants looted the bank's Mosul branch during the Battle of Mosul.
- 2012
New headquarters design agreement signed
[1]Zaha Hadid and the bank's governor attended a London ceremony for an agreement with Zaha Hadid Architects covering design stages for a new headquarters.
- 2010
Supreme Court addressed institutional supervision
[1]The Supreme Court ruled that the bank should be supervised by the Council of Ministers, prompting concern about central-bank independence.
- 2004
Modern independent central-bank framework adopted
[1]The Central Bank of Iraq Law re-established the bank as an independent monetary authority with state-owned authorised capital of 100 billion Iraqi dinars.
- 2003
Bank damaged and looted during the invasion
[1]The bank was heavily affected by the cash withdrawal before the invasion and by damage and looting after the Battle of Baghdad.
- 1985
Baghdad headquarters completed
[1]The bank's headquarters, designed by Dissing+Weitling, was completed in Baghdad.
- 1949
Currency Board replaced
[1]The Iraq Currency Board was dissolved and the National Bank of Iraq formally assumed Iraqi currency issuance.
- 1947
National Bank of Iraq established
[1]The National Bank of Iraq, predecessor of the modern Central Bank of Iraq, was established.
- 1931
Iraq Currency Board established
[1]The Iraq Currency Board was established in London to issue the Iraqi dinar and maintain monetary reserves.
Products and positioning
Iraq's sovereign monetary authority and financial-system regulator
Currency · 1949
Iraqi dinar
The Central Bank of Iraq issues and manages Iraq's national currency, including the administration of Iraqi dinar notes and coins. Currency management is one of the bank's core statutory responsibilities and is closely connected to monetary policy, exchange-rate policy, reserve management, and the functioning of domestic payments.
Central-banking service · 1947
Monetary and exchange-rate policy
The CBI formulates and implements Iraq's monetary policy and exchange-rate policy. These activities are intended to support domestic price stability and the orderly functioning of the Iraqi financial system, while responding to conditions such as oil revenues, import demand, public spending, and exchange-market pressure.
Reserve management · 1947
Official reserve management
The bank holds and manages Iraq's official foreign-exchange and gold reserves. Reserve management supports confidence in the currency, helps meet external obligations, and provides capacity to cover imports and address balance-of-payments or exchange-rate pressures.
Financial regulation · 2004
Bank licensing and supervision
The CBI licenses or permits banks and regulates and supervises them under Iraq's banking legislation. This function is intended to promote a sound, efficient, and competitive market-based financial system and to protect the integrity of banking operations.
Financial infrastructure · 2004
Payment-system oversight
The bank establishes, oversees, and promotes payment systems in Iraq. Payment-system responsibilities form part of its broader mandate to support efficient financial intermediation and reliable movement of money through the banking system.
Controversies
2013
Looting of the Mosul branch
ISIL militants looted the Central Bank's Mosul branch during the Battle of Mosul and reportedly removed more than US$4.29 million.
2003
Pre-invasion Central Bank cash withdrawal
Nearly US$1 billion was taken from the bank shortly before the 2003 invasion. Reference accounts describe a handwritten order attributed to Saddam Hussein and the loading of cash into vehicles under the supervision of Qusay Hussein.
Brand decisions
2012
New Baghdad headquarters design agreementOtherBackground
The bank sought a new headquarters project as part of the rebuilding and modernization of its institutional infrastructure.
Action taken
The bank signed an agreement with Zaha Hadid Architects covering the design stages of a new headquarters in Baghdad.
Aftermath
The reference material identifies the design agreement but does not provide a confirmed completion date or final project status.
2010
Branch integration with Baghdad headquartersStrategyBackground
The bank operated branches in Basrah, Mosul, Sulaimaniyah, and Erbil, while post-2003 institutional rebuilding continued.
Action taken
Measures were reported to be underway to integrate the regional branches more closely with the Baghdad headquarters.
Aftermath
The available reference material does not establish the final operational outcome of the integration measures.
2004
Re-establishment as an independent central bankStrategyBackground
The institution was reconstituted after the 2003 invasion, damage to the former bank, and the collapse of Saddam Hussein's government.
Action taken
The Central Bank of Iraq Law established the modern bank, assigned it monetary and supervisory functions, and set authorised capital at 100 billion Iraqi dinars, wholly owned by the Iraqi state.
Aftermath
The law created the legal framework for a central bank intended to operate with financial and administrative independence.
Sources2 sources
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