Iraq's Reserves Under Pressure
Iraq faces a challenge in maintaining its foreign reserves, which are approaching $79.2 billion and currently cover 9.6 months of import expenses. This level exceeds the minimum safe threshold according to IMF indicators. Although the reserves remain at a safe level, continued decline could threaten the stability of the dinar's exchange rate and overall economic stability if measures are not taken to reform public finances and reduce reliance on oil revenues. The financial advisor emphasized the importance of managing government spending and developing non-oil revenues, warning against repeated reliance on reserves to finance budget deficits, and stressed that maintaining monetary stability depends on the effectiveness of economic policies and structural reforms.
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