Central Bank Says Foreign Reserves Meet Foreign Currency Demand
At a Glance
- The Central Bank of Iraq says it has sufficient foreign reserves to meet demand for foreign currency.
- The bank says it continues financing foreign trade, bank-card settlements and travelers' cash-dollar requests through approved channels.
- It attributed recent exchange-rate increases in local markets to speculation, market expectations and the use of regional geopolitical conditions to create economic and financial uncertainty.
- The CBI urged citizens to rely exclusively on official information and report violations or inquiries through its official channels.
The Central Bank of Iraq says its foreign reserves are sufficient to meet official demand for foreign currency and that it will continue financing foreign trade through approved channels. The bank attributed recent exchange-rate increases in local markets to speculation and market expectations, while urging the public to rely on official information.
Key Statements and Focus Area
"The Central Bank of Iraq has sufficient foreign reserves to meet requests for foreign currency."
The bank said its reserves cover foreign-trade financing, bank-card settlements and travelers' cash-dollar requests at the official exchange rate.
"The rise in the exchange rate in local markets is due to speculation in the markets and expectations."
The CBI also attributed part of the market pressure to what it described as the misuse of regional geopolitical conditions to disrupt economic and financial conditions.
"The Central Bank continues to finance foreign trade according to approved purposes and channels."
The bank said the policy is intended to ensure the smooth flow of imports and meet domestic market needs.
CBI Position
| Issue | Central Bank Position |
|---|---|
| Foreign reserves | Sufficient to meet official foreign-currency demand |
| Foreign trade | Financing continues through approved channels |
| Bank cards | Foreign-currency requests for card settlements continue |
| Travelers | Cash-dollar requests covered at the official exchange rate |
| Exchange-rate rise | Attributed to speculation and market expectations |
| Imports | Financing intended to maintain smooth import flows |
| Public guidance | Citizens urged to rely on official CBI information |
CBI SAYS RESERVES SUFFICIENT
The CBI has repeatedly emphasized the role of foreign reserves in supporting the Iraqi dinar and meeting official foreign-currency requirements. In March 2026, the bank said its reserves covered about 12 months of imports and that it had sufficient buffers and tools to respond to economic and financial developments.
The bank has also previously stated that it holds sufficient foreign reserves to meet official foreign-currency requests and has been shifting toward mechanisms based on strengthening the foreign-currency balances of licensed Iraqi banks at correspondent institutions.
FYI
The CBI statement comes as the Iraqi foreign-exchange market faces pressure between the official exchange-rate system and movements in local markets. The bank's message is that official foreign-currency supply for trade and other approved purposes remains available, while it attributes market-rate increases to speculative activity and expectations rather than a shortage of official reserves.
The distinction is important: adequacy of official reserves does not necessarily mean the parallel-market exchange rate will immediately move in line with the official rate. Market demand, access to formal banking channels, expectations and geopolitical uncertainty can affect the rate outside the official system. The CBI's recent policy has focused on maintaining foreign-trade financing while strengthening banking-sector compliance and capacity.
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