Baghdad:The Central Bank of Iraq has announced a recovery in the country’s dollar reserves, which have reached nearly $80 billion during September and October. This comes as a reassurance to citizens that cash dollars remain available, with new shipments expected soon.

According to Iraqi News Agency, Mahmoud Dagher, adviser to the Governor of the Central Bank of Iraq, stated that the total dollar reserves, held both in the Central Bank’s accounts and the government’s account with the US Federal Reserve, improved after previously falling to $73 billion. The reserves have now returned to nearly $80 billion, driven by revenues from oil exports.

Dagher highlighted that the improvement in reserves was due to oil export revenues, which recently approached $6 billion. He noted the importance of reserve adequacy over absolute values, especially given Iraq’s heavy reliance on oil for public revenue and expenditure. The reserves, while fluctuating, are considered sufficient to support the country’s foreign trade.

Prime Minister Ali Faleh al-Zaidi has been monitoring the arrival of dollar shipments, with recent arrivals via two aircraft carrying US dollar banknotes. Further shipments are expected, although their arrival is contingent on stable security conditions. Dagher reassured that cash dollars are available, facilitating increased allocations for travelers.

The adviser emphasized that using reserves to cover national needs is economically unsound, urging the Ministry of Finance to seek alternative revenue sources. He also mentioned that Iraq’s reserves are primarily placed with the US Federal Reserve for protection, with additional reserves distributed across other international financial centers. Legal cases involving Iraqi banks remain unresolved, potentially affecting future reserve placements.