The Central Bank of Iraq (CBI) headquarters in Baghdad
Monitor
Iraq’s central bank says liquidity stable, foreign reserves top $100 billion
BAGHDAD — Iraq’s Central Bank says that liquidity remains stable in both Iraqi dinars and U.S. dollars, with “no shortage”, and that the country’s foreign reserves have exceeded $100 billion, according to Mohammed Younis, director of the bank’s Investment Department.
“Liquidity is fully available, whether in Iraqi dinars or U.S. dollars, and there is no shortage in this regard,” Younis told the Iraqi News Agency. He added that Iraq holds more than 163 tons of gold as part of its reserves and emphasized that managing foreign currency reserves falls within the Central Bank’s mandate.
The update comes amid concern over falling global oil prices, which have dipped below Iraq’s projected benchmark. In 2023, Iraq passed its first three-year federal budget covering 2023 to 2025, based on an assumed oil price of $70 per barrel and a target of 3.5 million barrels in daily exports. As of early 2025, Brent crude is trading between $60 and $65 per barrel, raising questions about potential revenue shortfalls.
In April, Mazhar Salih, economic adviser to the prime minister, acknowledged the trend during a session at the Center for Strategic Studies and Trade Policies at the Ministry of Trade. “There are signs the world is entering a downturn cycle in oil prices,” he said, but noted that Iraq’s budget was designed with market fluctuations in mind. He described the situation as “a temporary crisis expected to stabilize.”
Mohammed Younis’s statement to the Iraqi News Agency:
liquidity is fully available, whether in Iraqi dinars or U.S. dollars, and there is no shortage in this regard.
The Central Bank’s reserves have exceeded $100 billion, in addition to Iraq possessing a large gold reserve exceeding 163 tons.
The Central Bank is not an investment entity, but is concerned with managing Iraq’s foreign currency reserves. The purpose of these reserves is not to generate profits, but to ensure reasonable returns.
The reserve is managed according to well-studied policies based on high safety standards, and is invested in secure financial instruments that achieve acceptable returns. Iraq is on a good economic path.
