“[Iraq’s] Gross reserves increased to USD 112 billion at end-2023 (11.4 months of imports or 82 percent of broad money), up from USD 97 billion at end-2022 (11.1 months of imports and 83 percent of broad money). Reserves are expected to remain at adequate levels in the short term,” the IMF said in the report.
The IMF projected the reserves to be $100.5 this year and $93.4 next year.
“The 2023 gross reserve level is considered adequate, surpassing the benchmark range of 100–150 percent of the Fund’s ARA metric (375 percent of the ARA metric adjusted for lower oil prices in 2023, up from 354 percent in 2022),” read the report.
“However, the projected decline in oil prices and the continuation of current fiscal policy could lead to reserves falling to USD 30.7 billion by 2029 (85 percent of the adjusted ARA metric)," it added.
The Iraqi government is dependent on oil revenues to cover its costs and pay the salaries of civil servants. Despite suffering in much of 2021 due to record low oil prices, the country’s economy is once again booming as oil prices are increasing globally.
Iraq said in September 2021 that its cash reserves were over $85 billion at the time, the highest since 2003.
