Al-Sudani’s advisor: Increasing foreign reserves boosts market confidence in Iraq’s monetary policy
Al-Sudani’s advisor: Increasing foreign reserves boosts market confidence in Iraq’s monetary policy
6-2-2025
Al-Maalouma/Baghdad…
The financial advisor to the Prime Minister, Mazhar Mohammed Salih, confirmed on Monday that there is a direct proportional relationship between the current account surplus of the balance of payments and the development of the Central Bank’s foreign currency reserves, noting that this surplus has been positively reflected in the increase in foreign currency reserves during the current year.
Salih told Al-Maalouma Agency, “Achieving a surplus in the current account of the balance of payments during the current year was directly reflected in the increase in the Central Bank’s foreign currency reserves, as the reserve recorded an increase of more than 20% compared to 2020.”
He added, “This accumulation of reserves enhances the foreign currency coverage of the base currency and provides the monetary policy of the Central Bank of Iraq with a powerful tool to confront inflationary pressures and support monetary and economic stability.
” Salih continued, “The strength of the current foreign reserve gives the Central Bank a comfortable and effective ability to intervene in the exchange market, through open monetary policy tools, in a way that maintains the stability of the exchange rate and enhances the purchasing power of the Iraqi dinar.”
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