Dollar Remains Dominant in Iraq’s Foreign Currency Reserves

Mazer Mohammed Saleh, financial adviser to the Iraqi prime minister, said diversifying the country’s foreign currency reserves within a balanced investment portfolio is a strategic monetary policy aimed at strengthening financial stability and reducing exposure to a single asset or currency. Saleh said the Central Bank of Iraq bases reserve management on liquidity, security and return. He noted that the dollar remains the main component of Iraq’s reserves because of its direct link to foreign trade. He added that the euro, yuan and gold are also included as part of diversification, alongside investment tools such as Treasury bonds and sovereign deposits. Gold is an important part of global diversification standards, he said, but cannot replace other external assets on its own.