Standard Chartered: Iraq’s reserves could fall to $60 billion by year’s end
Standard Chartered: Iraq’s reserves could fall to $60 billion by year’s end
2026-10-07
Shafaq News – Follow-up
An economist at Standard Chartered Bank suggested on Wednesday that Iraq might turn to the International Monetary Fund if oil revenues continue to decline and the devaluation of the dinar fails to achieve the desired results in supporting public finances.
Carla Slim, quoted by Bloomberg, said that any potential program with the IMF could include structural reforms, particularly regarding the public sector wage bill, to enhance the sustainability of public finances.
She indicated that Iraq’s foreign reserves could decline to about $60 billion by the end of the year, compared to about $100 billion at the beginning of it, if they continue to be depleted at the current rate.
She added that adjusting the dinar’s exchange rate again in the coming months remains an option, depending on developments in oil revenues and foreign reserves.
Iraq’s foreign exchange reserves currently stand at around $85 billion, according to the latest rankings based on data from the International Monetary Fund, which places Iraq 28th globally and third in the Arab world.
Standard Chartered Bank is a British multinational banking group, and is one of the oldest and largest global financial groups.
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