Iraq’s foreign exchange reserves rise to 115 billion USD
The new headquarters of the Central Bank of Iraq in Baghdad. Photo: AFP
Baghdad (IraqiNews.com) – Iraq’s foreign reserves reached 115 billion USD, covering the country’s import needs for about 20 months, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, said.
Salih indicated that the Iraqi government’s recent decision to amend the exchange rate of the U.S. dollar against the Iraqi dinar supports the availability of foreign exchange reserves.
The Iraqi Council of Ministers approved last week the decision of the Central Bank of Iraq (CBI) to amend the exchange rate of the U.S. dollar against the dinar, to be 1,300 dinars against one U.S. dollar, instead of 1470 dinars, in a step aiming to enhance the value of the local currency.
Salih explained that the decision to adjust the exchange rate of the Iraqi dinar against the U.S. dollar is commensurate with the current rise in the Iraqi balance of payments to the gross domestic product of Iraq, which is currently about 15 percent, the Iraqi News Agency (INA) reported.
Salih clarified that this prompted the CBI to adjust the exchange rate and raise the value of the Iraqi dinar.
Salih pointed out that the decision to amend the exchange rate will also lead to combating inflationary activities that exacerbated in the last three months, as the CBI followed a strict monetary policy pattern that combats inflation by maximizing the value of Iraqi dinar, in order to impose stability in prices and to maintain living standards.
Salih added that Iraq’s 2023 budget will adopt the new exchange rate to evaluate its revenues and expenditures in foreign currency.