Iraq’s foreign reserves may fall to $60 billion by end of 2026

The logo of Standard Chartered. Photo: AFP Baghdad (IraqiNews.com) – A Standard Chartered economist said on Wednesday that Iraq may resort to the International Monetary Fund (IMF) if oil revenues continue to fall and the currency’s devaluation fails to boost state finances as intended. Standard Chartered chief economist for the Middle East and Pakistan Carla Slim said that any potential program with the IMF could entail structural reforms, particularly regarding the public sector wage bill, to enhance fiscal sustainability, Bloomberg reported. If the current pace of depletion continues, Iraq’s foreign reserves might fall to roughly $60 billion by the end of the year, down from over $100 billion at the beginning of the year, according to Slim. The economist indicated that the local currency’s exchange rate may be adjusted again in the future months, based on changes in oil earnings and foreign reserves. According to IMF data, Iraq’s foreign currency reserves currently stand at approximately $85 billion. Standard Chartered is a leading British multinational banking and financial services company headquartered in London.