The Central Bank of Iraq has announced an increase in its capital to 5 trillion dinars ($3.42 billion)
Iraqi media reports said recently that the bank decided to its capital from 3 trillion dinars to 5 trillion dinars.
“This increase comes to enhance the results of its balanced policies with a conservative investment management, and to emphasize the importance of the bank’s capital and its reflection on its financial position,” the reports said and added “the capital of central banks and their financial centers reflect the sobriety of these institutions, the solidity of their assets, and their ability to support the banking sector and the economic sector in general”.
The office also added, “The increase was made using part of the profits achieved by CBI in 2021.”
The International Monetary Fund recently advised Iraq to maintain fiscal discipline and taper the central bank’s lending support to the real estate sector to avoid adding to inflationary pressures.
“In addition, despite large reconstruction and other investment needs, limited near-term absorptive capacity, fiscal vulnerability to oil price volatility, and the challenges of the global energy transition call for building buffers for the future by saving a portion of oil revenues via a carefully designed sovereign wealth fund,” the IMF said.