Iraq’s foreign reserves rise slightly in May

Shafaq News/ Iraq’s foreign reserves rose to $98.83B by late May, the Central Bank of Iraq (CBI) reported on Wednesday.

The total climbed from $97.94B on May 1 and $98.09B in April. In dinars, reserves reached 128.48T, up from 127.33T.

Reserves are essential to maintaining Iraq’s dinar peg, funding imports, and stabilizing liquidity through the central bank’s currency auction system.

Despite the uptick, holdings remain lower than the $100.28B recorded in May 2024 and well below the $111.74B logged in 2023.

As OPEC’s second-largest oil producer, Iraq depends heavily on crude revenues. However, experts note that fluctuating prices and stricter US oversight of dollar transfers have weighed on reserve flows.

Earlier, the IMF warned in a review that continued fiscal gaps and weaker oil earnings could accelerate reserve depletion without economic reforms.