Iraq confirms foreign reserves enough to meet demand

The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) confirmed on Saturday that its foreign currency reserves are entirely sufficient to meet all market demands. The step aims to counter a wave of market instability and a surging US currency in the parallel exchange markets. The CBI indicated that current reserves are sufficient to finance foreign commerce, bank card transactions, and travelers’ cash requests at the official rate of 1,320 dinars per US dollar. The bank stated that reports of increased exchange rates and sluggish market activity did not indicate a scarcity of hard cash. The bank blamed the rising parallel market gap, where the US dollar soared beyond 1,600 Iraqi dinars, on speculation, manipulation, and the exploitation of regional geopolitical concerns rather than any true dollar shortage. The announcement comes as figures show Iraq’s foreign reserves decreased to $80.63 billion at the end of July. Financial experts say that these reserves are still within extremely safe boundaries, capable of supporting more than nine months of national imports. The CBI has asked individuals to depend solely on official statements and data and to lodge any complaints or queries directly through the CBI complaint portal.