Central Bank Reassures Citizens on Incoming Dollar Shipments
The Central Bank issued a reassurance to citizens on Tuesday regarding the availability of physical US dollars in the local market, confirming the continued arrival of new shipments of the American currency in the coming days. Mahmoud Daghir, advisor to the Central Bank governor and official spokesperson, explained that the total dollar reserves, whether in the Central Bank’s account or the government’s account at the Federal Reserve, improved during September and October of 2026 after having dropped to 73 billion dollars, with the reserves now close to 80 billion dollars. He pointed out that the gold reserves remain unchanged at 170 tons. He clarified that the improvement in dollar reserves during September and October was due to oil export revenues reaching nearly 6 billion dollars, which is considered an acceptable level amid the current crisis. He emphasized that Iraq’s main challenge lies in its heavy reliance on oil as a source of public revenue, especially in financing public spending and salaries, making it difficult to have a fixed reserve figure, but rather what is known as reserve adequacy. He added that if oil exports were to stop, as happened in April, May, and June, the reserves were sufficient for about one year, though they dropped to nine months, and now have started to return to previous levels. He stressed that reserves are not measured by absolute value but by their ability to support foreign trade, as Iraq heavily depends on foreign trade, noting that relying on reserves to cover needs is neither easy nor logical. He called on the Ministry of Finance to exert efforts to find revenue sources that reduce dependence on reserves. He noted that the Prime Minister personally monitors the arrival of dollar shipments, with each shipment carrying nearly half a billion dollars. He revealed that two planes carrying dollars have arrived, with more shipments expected in the coming days according to the Prime Minister’s statements. Daghir reassured citizens that physical dollars are available at the Central Bank, allowing travelers to obtain six quotas annually instead of two as was the case four months ago. He explained that there is an agreement to continue sending shipments in the upcoming period, considering that their arrival depends on security conditions. He warned that any outbreak of conflict could pose challenges in securing the arrival of cash shipments, especially since each shipment carries about half a billion dollars, requiring adequate protection for safe transport. He expressed hope that conditions remain normal to avoid imposing additional burdens on citizens. Regarding the deposit of Iraqi reserves at the US Federal Reserve, Daghir confirmed that this choice is based on logical, scientific, and technical considerations rather than political ones, noting that there are unresolved legal cases abroad involving Iraqi government banks. He added that resolving these cases might open other options for where to deposit reserves. He pointed out that Iraq deposits a large portion of its reserves at the US Federal Reserve for the protection it provides to these funds. He concluded by stating that Iraq holds reserves distributed among several global financial centers including Europe, Basel, the UAE, and China, but the majority is held at the US Federal Reserve for safeguarding these reserves.
