Iraq now has over $60 billion in foreign currency reserves as a result of the country’s oil sales, according to a report from Azzaman.
Mudher Saleh, a consultant with Iraq’s Central Bank, said the reserves are the highest in the country’s history, and are more than enough to cover the total volume of national currency currently in circulation.
Saleh made the remarks following a surge in demand for the US dollar, fueled mainly by sanctions on neighbouring Syria and Iran, saying the Central Bank was determined to meet demand for dollars.
The bank had no problems selling dollars in return for dinars, he added, and this has boosted confidence in the local currency. External trade with the dinar as the currency of choice was on the increase.
Trade flow between Iraq and Iran and Syria has skyrocketed recently, according to Azzaman, with Iraq supplying the demand for sanctioned goods.