Iraq has not tapped its foreign currency reserves to fill a budget gap but the issue is being discussed, the country's central bank governor has said.

Sinan Al Shibibi made the comments on the sidelines of a meeting of Arab central bank governors in Abu Dhabi, according to a report in our sister newspaper Gulf Daily News.

Asked whether Iraq had used its reserves to plug budget holes, he said: 'No, it hasn't. There are discussions. The reserves cannot be touched except for foreign exchange stability.'

Last May, the central bank said the government should keep away from its reserves as the oil-reliant country scrambles to plug budget shortfalls after a decline in crude prices.