Baghdad (IraqiNews.com) — Official financial statements from the Central Bank of Iraq (CBI) show that Iraq’s foreign exchange reserves declined to $86.175 billion at the end of June 2026, marking a decrease of $11.257 billion (-11.6%) compared to the $97.432 billion recorded at the close of 2025.
According to reserve records published on Monday, August 24, 2026, the contraction followed an early-year peak above $102 billion before downward momentum set in through the second quarter.
Monthly Reserve Trajectory (H1 2026)
End of 2025 Baseline: $97.432 billion
January 2026: $101.082 billion
February 2026 (Peak): $102.131 billion
March 2026: $100.341 billion
April 2026: $97.809 billion
May 2026: $93.673 billion
June 2026:$86.175 billion(Month-over-month drop of $7.498 billion)
The overall drop reduced the local currency value of the total portfolio from 126.661 trillion IQD at the end of 2025 to 112.027 trillion IQD by June 30, 2026—a net decline of 14.634 trillion IQD (-11.6%).
Reserve ComponentEnd of 2025 (IQD)End of June 2026 (IQD)Net ChangeChange (%)Investments & Securities93.266 Trillion81.998 Trillion-11.268 Trillion-12.1%Monetary Gold Reserves31.488 Trillion29.415 Trillion-2.073 Trillion-6.6%Cash Vault Holdings1.907 Trillion0.614 Trillion-1.293 Trillion-67.8%Total Equivalent Value126.661 Trillion112.027 Trillion-14.634 Trillion-11.6%
The reserve reduction aligns with broader fiscal pressures in the first half of 2026, during which lower oil revenues widened the state budget deficit and prompted the central bank to meet elevated domestic foreign currency demand.
While liquid investment instruments fell by 11.268 trillion IQD to absorb trade financing and foreign wire settlements, cash assets held in central bank vaults rebounded moderately in June (up to 614 billion IQD from 366 billion IQD in May), even as overall foreign exchange reserves adjusted downward to $86.175 billion.