Iraq’s dinar solid: Reserves fully back currency
Shafaq News/ Iraq’s foreign currency reserves remain sufficient to fully back the national currency in circulation, the prime minister’s financial advisor revealed on Monday.
Advisor Mudhhir Muhammad Salih told Shafaq News, “The reserves are adequate to cover three months’ worth of imports, indicating overall stability,” stressing that effective external use of foreign reserves—by balancing the need to maintain the dinar’s external purchasing power and exchange rate stability with efficient reserve management—is a core objective of Iraq’s independent monetary policy.
The Central Bank of Iraq reported on March 31 that net foreign reserves stood at 130.81 trillion dinars in 2024, down 10.18% from 145.64 trillion dinars in 2023. The central bank attributed the decline to rising domestic public debt used to cover the actual budget deficit.
