Fitch affirmed Iraq’s B- rating with a Stable Outlook. The rating reflects Iraq’s high commodity dependence, weak governance, and political risks, balanced by high FX reserves and a favorable debt profile. Despite large FX receipts, Fitch noted that the supply of USD in Iraq has been limited due to increased scrutiny over access to dollars through the central bank’s auctions. The US has also barred several Iraqi banks from conducting USD transactions to limit the flow of USD to neighboring countries under sanctions, mainly Iran and Syria.