Iraq’s foreign currency reserves have declined over the past two years, raising concerns among economists over the impact of lower oil prices and the country’s continued dependence on crude revenues.
According to experts, Iraq’s reserves fell to around $97.8 billion in April 2026, down from $111.7 billion at the end of 2023. They warned that further declines could occur if oil prices remain low and government spending continues at high levels.
Economic analysts said Iraq’s heavy reliance on oil income leaves public finances vulnerable to fluctuations in global energy markets. They stressed the need for greater economic diversification, increased private sector investment, and stronger non-oil revenues.
Experts also noted that foreign reserves play an important role in supporting the Iraqi dinar, maintaining currency market stability, and ensuring access to foreign currency for imports. Any decline in confidence could increase demand for US dollars and put pressure on exchange rates.
However, financial officials said Iraq’s reserves remain within safe levels by international standards, providing enough coverage for imports and allowing the Central Bank of Iraq to support monetary stability.
Authorities emphasized that long-term economic stability will depend on factors including oil prices, government revenue management, banking sector reforms, and efforts to reduce dependence on a single source of income.
