After talks of a liquidity crisis, the Central Bank reveals an inventory of its coffers.
After talks of a liquidity crisis, the Central Bank reveals an inventory of its coffers.
2025-06-03
The Central Bank of Iraq confirmed on Monday that it has reserves exceeding $100 billion, amid growing talk of a financial crisis and liquidity shortage facing the state treasury.
“Liquidity is fully available, whether in Iraqi dinars or US dollars, and there is no shortage in this regard,” said Mohammed Younis, the bank’s general manager of investments.
He pointed out that “the Central Bank’s reserves exceed $100 billion, in addition to Iraq’s large gold reserves, exceeding 163 tons,” according to the Iraqi News Agency.
Younis added, “The Central Bank is not an investment entity, but rather is responsible for managing Iraq’s foreign exchange reserves,” explaining that “the goal of these reserves is not to generate profits, but rather to ensure reasonable returns.”
He continued, “The reserve is managed according to well-thought-out policies based on high security standards, and is invested in safe financial instruments that generate acceptable returns.” He emphasized that “Iraq is on a good economic path.”
After months of information and indications of a shortage of “dinar” liquidity in the hands of the Iraqi Ministry of Finance, and the absence of a financial crisis but rather a liquidity shortage, the drop in oil prices has created a double problem. The challenge is no longer limited to a liquidity shortage, but also to a shortage of revenues compared to the size of expenditures. Meanwhile, the Ministry of Finance is maneuvering to use any available liquidity outlet and recycle funds to meet its obligations, including by resorting to tax deposits.
burathanews.com
