Iraq’s reserves decline signaling ongoing challenges for the country’s economy. The Central Bank of Iraq (CBI) reported that official reserves dropped by over 8% in the past year. This decrease amounts to more than 11 trillion Iraqi dinars, equivalent to about $8.3 billion.
In its latest report, the CBI confirmed that current reserves stand at 127.20 trillion dinars. One year ago, the reserves reached 138.57 trillion dinars. The new data shows a consistent downward trend in Iraq’s economic buffer.
Meanwhile, Iraq’s public debt has shown mixed movement. Domestic public debt slightly declined from 83.04 trillion dinars to 82.81 trillion dinars. However, when compared to the previous year, the debt remains much higher. In the same month last year, Iraq’s debt stood at just 73.75 trillion dinars.
This fall in reserves raises concerns about Iraq’s ability to manage economic shocks. Rising inflation, reduced oil revenues, and increased public spending have all strained financial stability. Additionally, economic experts believe global market volatility continues to impact Iraq’s monetary indicators.
Moreover, the decline in reserves could affect Iraq’s credit rating. A lower reserve balance makes the country more vulnerable to external pressures. Financial analysts warn that further declines may limit Iraq’s ability to fund essential imports and currency stability.
At the same time, the government is trying to manage its growing domestic debt. Although February saw a small improvement, debt levels remain significantly higher than a year ago. Policymakers aim to control borrowing while keeping economic reforms on track.
The Central Bank plans to introduce tighter controls to protect the country’s financial stability. It may also revise fiscal policies to encourage savings and boost foreign reserves.
Iraq’s financial authorities continue to face pressure from both domestic needs and global economic shifts. Despite challenges, officials express determination to strengthen reserves through improved fiscal management.
The phrase “Iraq’s reserves decline” remains central to the country’s current financial landscape. Continued transparency and smart economic decisions will shape how Iraq navigates this tough period.