Dr. Abdulmahdi Raheem Hamza
Abstract:
This study analyses foreign exchange reserves in the Iraqi economy, focusing on their optimal levels and their role in public debt sustainability and economic stability during crises. The research evaluates the relationship between foreign exchange reserves and key indicators such as GDP, exports, and imports. It also examines public debt sustainability using metrics like its ratio to GDP, national income, and exports over the period 2013–2023. The findings reveal that Iraq’s foreign exchange reserves are significantly influenced by oil price fluctuations, geopolitical events, and financial and monetary policies, leading to challenges in managing public debt. Public debt in Iraq has shown a consistent increase, imposing substantial burdens on the economy, including rising servicing costs and constrained fiscal flexibility. These dynamics highlight the critical role of foreign exchange reserves in stabilizing the economy and mitigating external shocks.
[ FULL TEXT PDF 1-7] DOI: 10.30566/ijo-bs/2025.01.139
