Eco
The Central Bank of Iraq announced a recovery in the country's U.S. dollar reserves, reaching approximately 80 billion dollars during September and October of the current year, with new shipments of foreign currency continuing to arrive in the coming days. The advisor to the Governor of the Central Bank and official spokesperson explained that the total dollar reserves, whether held in the Central Bank's account or the government's account at the U.S. Federal Reserve, have significantly improved after having dropped to 73 billion dollars, now returning to a level close to 80 billion dollars. He noted that the gold reserves remain stable at 170 tons without change. The improvement in dollar reserves was attributed to oil export revenues nearing 6 billion dollars during the two months, a level considered acceptable under current conditions. He emphasized that Iraq's main challenge lies in its heavy reliance on oil as the primary source of public revenue, especially in financing government spending and salaries, making the concept of reserves more about their sufficiency to support the economy rather than their absolute value. He added that the interruption of oil exports in April, May, and June led to a decrease in reserves, which previously could cover about a year, down to nine months, but they have begun to gradually return to previous levels. He stressed that the true measure of reserves is their capacity to support foreign trade, given Iraq's significant dependence on external commerce. He also highlighted the necessity for the Ministry of Finance to exert efforts to reduce reliance on reserves by finding alternative funding sources. He pointed out that the Prime Minister personally monitors the arrival of dollar shipments, each carrying nearly half a billion dollars. He mentioned that two planes loaded with dollars have arrived, with more shipments expected in the coming days. He sent a reassuring message to citizens about the availability of cash dollars at the Central Bank, which has allowed travelers to obtain larger foreign currency quotas compared to previous months. He confirmed an agreement to continue sending dollar shipments in the near future, noting that their continued arrival depends on the country's security situation. He warned that any conflict or confrontation could affect the secure arrival of cash shipments, especially since each shipment carries large sums requiring special protection. He explained that depositing reserves at the U.S. Federal Reserve is based on technical and scientific considerations rather than political ones. He noted ongoing legal cases abroad involving some Iraqi government banks, which may affect Iraq's options for where to deposit its reserves. He affirmed that Iraq holds reserves distributed across several financial centers worldwide, including Europe, Basel, the UAE, and China, but the majority is held at the U.S. Federal Reserve due to the protection and security it provides for these funds.
