Two experts for {Al-Sabah}: Iraq’s cash reserves {reassuring}
Baghdad: Thank you Al-Fatlawi
Two economists said that Iraq’s current monetary reserves are “reassuring” and are the best compared to previous years.
Iraq ranked third in the Arab world in foreign exchange reserves for 2024 after Saudi Arabia and the UAE.
Academic Dr. Nabil Al-Marsi told Al-Sabah: “Iraq ranked third in the Arab world in terms of foreign exchange reserves for 2024, pointing out that despite the slight decline in foreign monetary reserves in the Central Bank of Iraq from (109,153) billion dollars in 2023 to (106.7) billion dollars in 2024, according to Central Bank of Iraq data, as a result of remittance deductions to the Iraqi government, but the financial situation in Iraq remains coherent, and ranks third after Saudi Arabia and the UAE, with a reserve ratio of (499) billion dollars for Saudi Arabia and (210) billion dollars as a reserve for the UAE.
Currency reserve
He added that the country has large monetary reserves, which are greater than 100 percent of the size of the exporting currency, the ratio of a country such as Iraq retains monetary reserves equivalent to between 20 to 40 percent of the volume of the issued currency positive, indicating that the financial situation is reassuring as it exceeded 100 percent, and therefore the monetary reserve in the country is very large, pointing to the importance of the matter, as it represents a wall of rejection in the face of crises that may occur, even if they are caused by the decline in the price of oil.
Discount for transfers
He pointed out that the central bank can provide a great protection bumper for the Iraqi government if it needs some financial supplies by deducting remittances from government banks, pointing out that the financial situation in the country is among the most prosperous years in terms of foreign monetary reserves.
He pointed out that this contributes to reassuring foreign investors and providing a safe investment environment and maintaining the fixed even rate adopted by Iraq for the dinar against the dollar, pointing out that the monetary stability of any country is a very important goal in attracting foreign investors and reassuring them, as well as its work in promoting domestic investment, especially since the Central Bank has initiatives, especially those related to housing and initiatives of the Sustainable Development Movement.
Third place
Al-Masimi stated that Iraq’s third place in the Arab world in terms of having foreign monetary reserves is very important, for economic reasons, foremost of which is helping to maintain the value of the local currency at a fixed price, and maintaining liquidity to meet international financial obligations, as well as financing internal projects and reassuring investors, not to mention diversifying investment portfolios.
Financial stability
For his part, economic researcher Imad Al-Mohammadawi considered in the “Sabah” monetary reserve of any country a source of financial stability, and a resper for any financial storms that the economy may face, pointing out that it avoids financial pressures and revives sustainable development.
He pointed out that cash reserves are defined as funds that can be retained to face crises and meet needs, without the need for borrowing, as well as helping to prepare flexible financial strategies that enable the country to carry out projects with flexibility and confidence, pointing at the same time pointing out the need for multiple sources of income and not to keep oil as a primary source of income to increase reserves and achieve sustainable development in the interest of Iraq and its people.
The It is noteworthy that the monetary reserve is defined as the total deposits and bonds of foreign currencies held by central banks and monetary authorities in the country, in order to support the local currency and pay the debts owed by the state. The monetary reserve usually consists of several elements, namely foreign currencies, such as the dollar, the euro, the Japanese yen and other currencies, or what central banks have of gold.
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