💹 Iraq’s Central Bank Stands Firm: “No Change to Dinar Rate” Despite Falling Reserves 🇮🇶💰
Investment & Economic Insights – November 12, 2025 | Baghdad – Nada Shawkat
🌟 Key Highlights
🔹 Central Bank Reassures Market Stability:
The Central Bank of Iraq (CBI) dismissed social media rumors suggesting a devaluation of the dinar to 4,000 per dollar, calling them “baseless.” The Bank reaffirmed its commitment to defending the current exchange rate and maintaining financial stability amid public concern.
🔹 Foreign Reserves Under Pressure 📉
Economic data shows a steady decline in Iraq’s foreign reserves over the past three years:
$111.7B (2023)
$100.2B (2024)
$98.1B (Sept 2025)
➡️ Loss: More than $13 billion, or 12% of total reserves.
Analysts warn this trend tightens the cushion protecting the dinar, especially as Iraq’s economy remains heavily oil-dependent.
🔹 Fiscal Challenges & Budget Delays 🏛️
Economist Basim Jamil Antoine notes deep
political divisions have blocked approval of the 2025 budget, delaying economic planning and financial accountability. He calls the budget “a basic principle for governance” and warns that ongoing disputes among blocs are stalling national progress.
🔹 Financial Management Law as a Safety Net ⚖️
Economist Salah Nouri emphasized that Iraq’s Financial Management Law (Article 13) has prevented financial paralysis.
Key provisions include:
✅ Continuation of spending even without an approved budget (1/12th rule).
✅ Ongoing investment funding based on project progress.
✅ Use of prior year’s financial statements as a temporary framework.
This law, coupled with Iraq’s three-year budget plan, has helped maintain operational and salary stability despite political gridlock.
💬 Investor Insight:
While the CBI’s stance reassures short-term stability, the declining reserves and political infighting underline structural weaknesses. Long-term dinar investors should monitor:
Oil market trends (directly tied to reserve levels).
Fiscal discipline reforms.
Potential shifts in exchange rate policy if reserves continue to erode.
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