Iraq Economic News and Points To Ponder Saturday Morning 1-3-26
Map Of Arab Monetary Reserves: Iraq Ranks Third With $112 Billion
January 2, 2026 Baghdad/Iraq Observer With the acceleration of economic crises and trade tensions globally, questions arise about financial resilience and a country's ability to withstand the volatility of global markets. One of the safety valves and first lines of defense is the foreign exchange reserves a country holds. World Bank data even measures these reserves by the number of months of import coverage.
Countries’ policies on building or relying on reserves vary to a degree that is related to their exposure to different risks, population size, imports, international relations, and the international standing of their currency.
What if Egypt paid off all its debts? An unprecedented scenario for a debt-free economy.
In the Arab world, the picture begins in Riyadh, where Saudi Arabia tops the list with a massive reserve of nearly $463 billion. This figure is not merely a financial indicator, but a reflection of a robust oil-based economy and a strategic vision that seeks to diversify income sources through mega-projects within the framework of "Vision 2030."
The UAE occupies second place, amid rapid growth and strong reserve coverage of up to about 7 months with a balanced asset management policy between return and risk.
Iraq Pulls Off A Surprise
In October 2025, reserves reached $256.9 billion (AED 991.6 billion), according to central bank data.
The surprise comes from Baghdad. Despite years of turmoil, the Iraqi central bank has reserves of up to $112 billion, thanks to oil exports which remain the backbone of its economy.
In November 2025, Iraq's foreign currency reserves stood at approximately $112 billion, according to data from the Central Bank of Iraq. These reserves represent one of the highest levels in the region after Saudi Arabia and the UAE, covering more than 15 months of imports and providing Iraq with a significant safety net despite internal political and economic challenges.
Libya ranks fourth in the Arab world with large foreign currency reserves.
From the Gulf to the heart of Africa, despite political divisions, Libya maintains its fourth position in the Arab world with foreign currency reserves approaching $99 billion, covering about four years of imports.
Oil and gas exports define the features of economic power, as Arab countries' finances seize their windfall by increasing reserves and managing liquidity during periods of recession.
Qatar's central bank's foreign exchange reserves rose to $71.7 billion last November, covering 11 months of imports.
Egypt's substantial reserves exceeded $50.2 billion.
In Cairo, the most populous Arab country, foreign currency reserves stand at approximately $50.2 billion, a significant figure for supporting the Egyptian pound amidst import pressures and debt repayments. These reserves are now sufficient to cover more than six months of imports.
The figures at the Central Bank of Egypt improved during a year that witnessed an improvement in most indicators, and a rise in dollar revenues from exports, tourism and remittances from Egyptians abroad to more than $100 billion combined.
Reserves in Morocco and Algeria
Both Morocco and Algeria maintain similar levels of foreign exchange reserves, ranging between $39 billion and $41 billion.
These figures are not just data in central bank reports, but indicators of the strength of countries and their ability to withstand fluctuations in oil prices, the challenges of inflation, and to ensure the stability of local currencies.
The world's largest foreign exchange reserves
Globally, China has the largest foreign exchange reserves, exceeding $3.2 trillion, followed by Japan, which exceeds $1 trillion.
Ultimately, whoever holds the reserves holds the initiative, and in a world full of fluctuations, these treasuries are the first line of defense for the stability of Arab economies. LINK
Economist: The Rise Of The Dollar In Iraq Is Linked To External Fluctuations
Economy December 31, 2025 12:49 Information/Baghdad... Economic expert Duraid Al-Anzi confirmed on Wednesday that the recent fluctuations in the dollar exchange rate in Iraq are not a result of monetary policies, but rather reflect the direct effects of fluctuations in neighboring foreign currencies.
Al-Anzi told the Information Agency, "The dollar exchange rate is experiencing frequent, but limited, rises and falls. The main reason is the economic and political pressures in neighboring countries, which directly affect import activity and prices in the Iraqi market."
He added, "The Iraqi dinar is asserting its strength in the local market, making some imported goods relatively cheap at present," emphasizing that this process is beyond the control of the Central Bank or the Iraqi government.
Al-Anzi pointed out that "the stability of neighboring currencies could lead to a stabilization of the dollar exchange rate in Iraq at certain levels," explaining that the current situation reflects the actual demand for dollars in regional trade and not any internal changes in the Iraqi economy. End/25 LINK
Experts Stress The Importance Of Digital Banking Transformation
Economic 2025/12/31 Baghdad: Al-Sabah Economic experts have urged the need to redouble efforts in digital transformation of banking transactions, stressing that this step is capable of producing a package of positive results, including absorbing cash liquidity and eliminating bureaucracy, as well as enhancing financial inclusion and keeping pace with global competition.
Digital transformation in banking transactions is also a key factor in providing integrated banking services without the need for direct interaction in all banking operations, as well as its role in creating greater value for customers and achieving strategic goals for banks.
Economic expert Dr. Mahmoud Dagher believes that the current stage requires a serious shift from traditional methods to adopting advanced banking applications that encompass all operations and services without exception.
He emphasized that it is no longer worthwhile to continue working with the current core banking systems in their old forms; rather, it is necessary to upgrade them and move to newer “Tier One” systems capable of keeping pace with rapid developments.
In The Banking Sector. Integrated Banking Services
Dagher added to Al-Sabah that this transformation requires competent human resources who possess the technical expertise and ability to manage and operate systems and applications with high efficiency, noting that achieving these requirements will open the way for providing integrated banking services without the need for direct contact, in line with the nature of modern banking products, whether Islamic or traditional, which are managed today via mobile phone or computer, and contribute to improving the quality of services and enhancing the confidence of customers in the banking sector.
Key Pillars Of Transformation
For his part, banking expert Dr. Nabil Rahim Al-Abadi questioned whether updating traditional systems was sufficient to create a genuine financial future. He pointed out that banks suddenly found themselves in a race against time and against evolving customer expectations.
Their lives have been completely digitized.
Al-Abadi answers his own question, in an interview with Al-Sabah, by saying that technical upgrades alone will not create a miracle, pointing out that what we need at this critical juncture consists of three basic pillars.
He explained that what banks need is a smart infrastructure, not just an electronic one, noting that the goal is not merely to digitize current transactions, but to build flexible and interoperable systems capable of anticipating customer behavior, providing proactive financial solutions, and seamlessly integrating with the broader digital economy (including e-commerce).
Towards smart cities). Furthermore, investing in secure cloud infrastructure and big data systems and their analysis is the backbone.
This Stage. Staff Rehabilitation
The expert added that the second pillar is the existence of a digital mindset before digital applications, explaining that the biggest challenge is the corporate culture and human affairs, as the banking system needs a new generation of leaders who think like tech-first companies, and radical development programs to rehabilitate the current staff, as the transformation is a transformation in organizational thought and behavior, and not in the programming code alone.
The banking expert identified the third pillar as contingent upon the availability of a legislative framework and national coordination, emphasizing that banks cannot operate in isolation. He stressed the need for flexible and rapidly evolving legislation that regulates digital payments, financial data, and cybersecurity, and keeps pace with innovations such as open banking. Furthermore, coordination between the central bank and other government entities (such as tax and trade authorities) is crucial for breaking down barriers and creating a unified experience.
For The Citizen. The Option... A Big Leap
Al-Abadi stated that the path forward is not about upgrading outdated systems, but rather a radical redesign of the value proposition.
He emphasized that the banks that will survive and thrive are those that understand they are transforming from places you go to into services available everywhere, at all times, and in a personalized way. This is the essence of the transformation we are waiting for. Time waits for no one, and the only option is a giant leap, not small steps.
Rapid Transformations
It is noted that Iraq is witnessing an accelerated digital transformation in the banking sector, led by the Central Bank, with the aim of enhancing financial inclusion and reducing reliance on cash through the launch of projects such as the instant payment system and local cards, the establishment of new digital banks, and the development of infrastructure, with a focus on cybersecurity and raising community awareness to meet the growing challenges of financial technology in order to achieve a more transparent and efficient economy. LINK
Saleh's Appearance: The Revenue Improvement Is Temporary, And The Solution Lies In Diversifying The Economy And Boosting Productive Spending.
Time: 2025/12/30 {Economic: Al-Furat News} Economic expert Mazhar Muhammad Saleh confirmed on Tuesday that the efficiency achieved in managing public liquidity, fulfilling basic obligations, and controlling deficit levels when revenues improve and work to maximize them, is a periodic improvement, not a structural one, due to its direct link to the price cycle of the basic resource, namely oil.
Saleh explained in his interview with Al-Furat News Agency that "this reality constantly calls for a move towards financial strengthening as a preventive option, which is based in essence on examining public spending, analyzing the structure of expenditures, and raising their efficiency to the highest possible level, before thinking about resorting to financing through borrowing."
He explained that “the steps taken to diversify the sources of national income cannot bear fruit through isolated or circumstantial financial measures, but rather require a comprehensive strategy based on an investment budget guided by results and economic impact, not by being satisfied with the logic of allocations, and the transformation from a spending state to a production state, in which public resources are employed to generate sustainable added value, in addition to linking the financial policy with a clear industrial and commercial policy, capable of stimulating the productive sectors and enhancing the competitiveness of the national economy.”
He concluded by saying that "the general budget will remain, otherwise, hostage to the cycle of a single resource, no matter how much its management tools improve in the short term, and no matter how high the level of situational financial discipline." From... Ragheed LINK
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