The Central Bank of Iraq (CBI) has held an extraordinary board meeting to review recent economic and financial developments and assess macroeconomic indicators and future outlooks in light of regional and global changes.
The board conducted a comprehensive review of conditions in the monetary and financial markets, including:
- Liquidity levels within the banking system;
- Developments in the money supply;
- The central bank’s foreign currency requirements;
- Financial stability indicators and banking sector performance;
- External trade movements and payment flows.
The meeting also evaluated potential risks associated with regional and international economic developments and their possible impact on the Iraqi economy.
The central bank said its foreign reserves currently cover around 12 months of imports, emphasising that it has sufficient policy tools and reserves to address potential challenges while maintaining stability in monetary and financial markets.
Following the review, the board highlighted several priorities:
- Maintaining strong foreign reserves and financial buffers to support monetary policy flexibility and absorb potential economic shocks.
- Ensuring the continued payment of public salaries and essential expenditures in the coming months to support economic and social stability.
- Supporting liquidity in the banking system to maintain stable daily banking operations and financial services for citizens and businesses.
- Ensuring smooth external financial transfers to facilitate imports and other international payments, supporting stable trade flows and market supply.
The central bank said the measures are intended to strengthen confidence in the banking sector and support continued economic activity.
