Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Iraq's Foreign Reserves Exceed $90 Billion Barrier

Fri 02 Dec 2022 | 11:34 PM
Taarek Refaat

The Central Bank of Iraq announced on Fridays that the country's cash reserves exceeded the $90 billion barrier.

The Central Bank's advisor Ihsan Al-Yasiri said - in a statement reported by the Iraqi News Agency (INA) - "For the first time, the central bank's reserves exceeded the threshold of $90 billion, as this number is very large and indicates a barrier to the recovery of the economy and a great support for the value of the Iraqi currency." Pointing out that "the value of the Iraqi currency or the balance exceeded 160%, as the value of the Iraqi dinar amounted to more than one and a half dinars."

He added, "The Iraqi currency is now witnessing a great rise and recovery, as it is one of the strong international currencies, although it is not an international currency for circulation."

Regarding banking control procedures, Al-Yasiri said: "The government program is concerned with controlling government banks, and private banks, since the latter are part of the banking sector and are covered by government control measures."

He pointed out that "the Central Bank has shifted from its traditional policy, which is represented by pursuing stability and issuing cash and others, to a large development institution, as it launched a development fund whose funds exceeded 18 trillion dinars," noting that "this fund contributed to bridging the government financing gap as a result of security and economic challenges and price drops." 

He continued, "The bank launched initiatives and projects through loans that exceeded 15 trillion dinars for industry, agriculture, housing and trade projects," noting that the initiatives also included empowering women and unemployed youth, in addition to allocating billions of dinars from bank funds to support cultural institutions, including rehabilitation, churches, mosques and theatres.

Regarding the new 20,000 dinars category, Al-Yasiri stressed that "the 20,000 dinars category is an intermediate currency between 25,000 and 10,000, as it will have a role in redrawing the structure of banknotes," noting that "this category will be acceptable and with high security specifications."

He continued, "The issuance of this category is not related to the budget, since the Central Bank has an independent budget, but rather it is related to printing procedures, choosing colors and security marks," suggesting that the currency will be issued at the end of 2023."