The economic condition of Iraq was totally dependent on the oil production and its price fluctuations. The new financial rules and regulations framed in Central Bank of Iraq has given a strategic direction to all commercial banks prevail in Iraq to promote the long term stability and sustainability by introducing the financial policy to open the avenues and opportunities for investments in different industries. The new directives of CBI has established a well-aligned monetary policy with government funding and spending policy. The paper is presenting the insites of the strategic direction of commercial banks in Iraq under the management and monitoring of the Central Bank of Iraq. The paper is proposing the new financial stability framework to manage the commercial banks in Iraq introduced by Central Bank of Iraq. The paper also keenly discussed the strategic plan 2016-2020 which has promoted and encourage the accountability, transperancy and corporate governance throughout the financial sector of Iraq. As a result Iraq has expanded the scope on the financial practices and methods implemented in the banking sector with international standards. This paper has keenly described the insights of Central Bank of India regulations and its implementation methods to foster the prosperity of the economic growth in the country.