Central Bank of Iraq Confirms Adequacy of Foreign Currency Reserves
The Central Bank of Iraq (CBI) has confirmed that the country’s foreign currency reserves are sufficient to meet demand for foreign currency and finance foreign trade through approved purposes and channels.
The statement came amid reports of rising exchange rates in the parallel market and a slowdown in market activity. The CBI explained that its foreign reserves are sufficient to ensure the continued financing of trade, the settlement of bank card transactions, and the provision of U.S. dollars to travelers at the official exchange rate.
The Central Bank attributed the rise in the parallel-market exchange rate to factors related to speculation, market manipulation, and traders’ expectations, as well as uncertainty stemming from regional geopolitical developments.
The CBI stressed that the increase in the parallel-market exchange rate does not indicate a shortage of foreign currency needed to finance legitimate commercial activities.
The statement forms part of the Central Bank’s efforts to reassure markets, strengthen confidence in monetary policy, and reaffirm the banking sector’s ability to meet legitimate demand for U.S. dollars.