Iraq’s US Treasury holdings reached a record level and showed strong financial growth. New data revealed that Iraq increased its investments in United States Treasury bonds to $42 billion. This figure marked a sharp 79 percent rise from $23.4 billion a year earlier. As a result, Iraq’s US Treasury holdings attracted attention across global markets.
Moreover, long-term bonds drove almost all the growth. These bonds climbed to $40.8 billion and dominated the portfolio. In contrast, short-term assets stayed limited at only $1.2 billion. Therefore, Iraq focused heavily on long-term financial stability rather than quick returns.
Throughout the year, Iraq steadily expanded its portfolio. It started near $39.85 billion early in the year. Then, it gradually climbed and reached $42 billion by year-end. This consistent rise showed clear financial planning and strong reserve management.
However, economic pressure surrounded this growth. Iraq faced major disruptions after the closure of the Strait of Hormuz. This shutdown blocked southern oil exports of 3.35 million barrels per day. Consequently, the country lost a key revenue source during a critical period.
Oil revenue plays a vital role in Iraq’s economy. It covers around 90 percent of the federal budget. Therefore, any disruption directly impacts national income and spending. Despite this challenge, Iraq’s US Treasury holdings continued to grow, which showed resilience.
In addition, Iraq ranked among the top four Arab countries investing in US Treasury bonds. It followed Saudi Arabia, the United Arab Emirates, and Kuwait. This position highlighted Iraq’s rising financial presence in global markets.
Furthermore, the Central Bank of Iraq manages these investments. The bank uses them as part of Iraq’s foreign reserves strategy. These reserves help stabilize the economy and protect against financial shocks.
At the same time, analysts view this growth as a strategic move. Iraq increased its holdings to strengthen financial security. It also aimed to balance risks from oil dependency. Therefore, Iraq US Treasury holdings reflect both economic planning and risk management.
Looking ahead, Iraq may continue this investment trend. If oil revenues remain unstable, the country could rely more on foreign assets. This approach can provide financial stability during uncertain times. As a result, the Iraq US Treasury holdings may grow further in the coming years.
In summary, Iraq increased its US Treasury investments to $42 billion. It focused on long-term bonds and steady growth. Despite oil export challenges, the country strengthened its financial reserves and global position.