Economic Insights – Baghdad
The Financial Adviser to the Prime Minister, Mazhar Muhammad Saleh, stated on Sunday that Iraq’s foreign exchange reserves serve as a vital safeguard against economic volatility, currently estimated at approximately $110 billion.
Saleh elaborated that Iraq’s foreign financial reserves are critical indicators of the nation’s investment climate, both domestic and international. The stable foreign exchange portfolio, valued at about $110 billion, comprises gold, U.S. dollars, and various foreign currencies.
These reserves significantly contribute to the overall economic stability, enhancing both internal and external confidence. They act as a protective buffer against global economic shifts and pressures, offering robust support for trade and international debt obligations.
He further indicated that the current account balance reflects positive trends, reinforcing the stability of the Iraqi dinar. This resilience mitigates the adverse effects of fluctuations in global oil markets, particularly due to Iraq’s reliance on oil revenue. As the fifth-largest oil producer in the world, Iraq benefits from sustainable foreign financial inflows, which facilitate the rapid and efficient strengthening of its cash reserves.
Saleh emphasized that these substantial reserves foster a conducive investment environment, thus propelling the pace of investments and stimulating the country’s promising economic growth.
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