Foreign Exchange Reserves and Their Role in Achieving Public Debt Sustainability: An Analytical Study of the Iraqi Economy (2013–2023)

International Journal of Business Society, Vol. 9, Issue 1
Dr. Abdulmahdi Raheem Hamza
foreign exchange reservespublic debt sustainability
PDFRegular IssueDOI: 10.30566/ijo-bs/2025.01.139
9Volume
1Issue

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.

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Article Information

Article Details
Volume & IssueVol. 9, Iss. 1
Publication DateJan 30, 2025
Authors
Dr. Abdulmahdi Raheem Hamza
DOI
10.30566/ijo-bs/2025.01.139
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Foreign Exchange Reserves and Their Role in Achieving Public Debt Sustainability: An Analytical Study of the Iraqi Economy (2013–2023) | International Journal of Business Society