Iraq’s foreign exchange reserves cover 18 months of imports.
The Central Bank of Iraq revealed on Saturday that foreign currency reserves cover a year and a half of imports during the third quarter of 2024.
The bank said in a report on “monetary stability,” seen by Shafaq News Agency, that “Iraq’s foreign currency reserves, amounting to 143.35 trillion dinars for the third quarter of 2024, cover 18 months of imports if Iraq does not receive oil revenues by that time.”
He added, “These reserves decreased from 21 months of imports in the third quarter of 2023 to 18 months during the same period in 2024,” indicating that “the international standard used is for this percentage of imports to cover 6 months.”
Iraq decides to voluntarily reduce its oil production by 125,000 barrels per day.
Economist Nabil Al-Marsoumi announced on Friday that Iraq will voluntarily reduce its crude oil production by 125,000 barrels per day, starting from March until June 2026, due to its failure to comply with its production quota under the OPEC+ agreement. Al-Marsoumi stated that “this reduction will lead to a decline in Iraqi oil exports to approximately 3.2 million barrels per day, which will negatively impact oil revenues, causing losses estimated at $262 million per month and more than $3.19 billion annually.”
He also noted that “these losses will exacerbate the federal budget deficit for 2025, which could pose an additional challenge to the country’s financial and economic situation.”
On November 2, 2024, the Ministry of Oil reiterated its position to continue voluntary crude oil production cuts as part of the OPEC+ alliance, announcing that “Iraq has reduced its production and oil exports to 3.3 million barrels per day.”
He added, “This reduction will continue over the coming months to ensure production remains within the agreed limits and compensate for the surplus produced in the past months.”
Although this reduction may contribute to supporting global oil prices, it poses a dilemma for the Iraqi economy, as it struggles to balance international obligations with the country’s need for sustainable financial resources to finance government projects, pay salaries, and cover infrastructure and basic services.
