CBI: Iraq’s foreign reserves fall 0.52% in Q3
Shafaq News/ Iraq’s foreign currencyreserves declined in the third quarter of 2024, with the Central Bank of Iraq(CBI) attributing the drop to monetary tightening measures and lower oilprices.
According to a CBI report, Iraq’sforeign currency reserves fell by 0.52%, reaching 143.35 trillion dinars($109.64 billion), compared to 144.10 trillion dinars ($110.21 billion) in thesame period of 2023.
The bank attributed the decline toits policy of liquidity absorption through sterilization operations, a measureused by central banks to regulate the money supply by adjusting foreignreserves. As a result, cash receipts increased from 18.46 trillion dinars($14.1 billion) to 20.09 trillion dinars ($15.37 billion), reducing net foreignreserves.
Another contributing factor,according to the report, was a drop in oil prices, which fell from $82.2 perbarrel to $77.3 per barrel during the same period, impacting Iraq’s foreignexchange earnings.
The CBI noted that higher publicspending increased the amount of currency in circulation from 100.06 trilliondinars ($76.5 billion) to 104.13 trillion dinars ($79.64 billion), contributingto a rise in public debt.
Despite the decline, the CBIemphasized that reserves remain above critical thresholds, in line with globalfinancial standards, which recommend that foreign reserves cover at least 20%of the broad money supply. It further stated that monetary policies willcontinue to focus on “maintaining financial stability.”
