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Gold reserves enhance confidence in the national currency
Economical 11/12/2024
Baghdad: the mainstay of the emirate
Gold plays a vital role in countries' monetary reserves for several reasons related to
financial stability,
hedging economic risks, and
enhancing confidence in the national currency, as well as
being an effective tool for hedging against inflation.
Which called on the Central Bank of Iraq several times and in successive years to enhance its balance of gold reserves, which reached 148 tons and 305 ounces.
Regarding the reason that prompted banks to rely on the yellow metal alone, financial expert Mahmoud Dagher explained to “Al-Sabah” that
the reason for central banks, including the Central Bank of Iraq, to increase their purchase of monetary gold is because it is suitable as a reserve compared to industrial gold, indicating that the
Chinese Central Bank and the Indian Reserve One of the largest buyers of gold in the world. Dagher added that the
Total reserves
Iraqi Central Bank increased its acquisition of gold more than once during the last two years, most recently in the first quarter of 2024, until the total reserves of gold reached 148 tons and 305 ounces after the last deal in May of 2024, amounting to 2 tons and 644 ounces. He explained that
Bank assets
although gold is not considered the best asset for achieving returns when investing compared to the currencies, deposits, and securities that are allowed to be acquired within the assets of central banks, it is a haven for balance among other assets whose values are affected by the nature of the economic cycle (recession and inflation), indicating that
gold is declining. Its price during recession and rises during inflation, reflecting its balancing role. He continued that
Global trend
gold is also a haven when currencies fluctuate against each other greatly, as happened in the last two years for the ruble, yuan and rupee currencies, and
thus reduces the impact of the so-called currency risks, pointing out that the
Iraqi Central Bank did not deviate from the global trend in purchasing gold despite The rise in its price accompanied the global inflation wave that hit the major economies until it approached 10%. Because
the rule for purchasing assets by central banks is based on the principle of buying an asset when its price falls in the hope of selling it when it rises, which did not happen in gold because expectations during the last two years were for gold prices to rise, in addition to the continued significant fluctuation of currencies among them.
Avoid inflation
For her part, the specialist in economic affairs, Dr. Ikram Abdel Aziz, said that
Iraq is the fourth Arab country in possessing large quantities of gold as an element indicative of the health of the Iraqi economy, indicating that
gold and hard currency reserves become a supportive means and an important framework for hedging and avoiding inflation and high prices.
Abdel Aziz added, in an interview with “Al-Sabah”: that
gold and foreign currency work to preserve the value of currency and the interest it accrues;
Therefore, countries seek to possess large quantities of gold, noting that possessing large quantities of gold reserves in light of the current fluctuations, geopolitical changes, and the situation of the Iraqi economy would be a safe haven to preserve value and hedge against inflation. She explained that the
Developmental paths
presence of large quantities of gold with the Central Bank of Iraq is an important element in reducing dollar control and reducing instability, noting that
Iraq achieved this increase in its gold reserves to serve development paths. She continued that the
Central Bank of Iraq has a variety of reserves, including gold, whose stock is an effective means and a basic pillar for maintaining purchasing power, stressing that the
presence of strong reserves and their diversity in the investment portfolio of the Central Bank of Iraq is a basic pillar and a factor restraining the rise in prices and hedging against inflation, and
thus confidence in the economic system is achieved. Al-Qaim.
https://alsabaah.iq/105777-.html
Economical 11/12/2024
Baghdad: the mainstay of the emirate
Gold plays a vital role in countries' monetary reserves for several reasons related to
financial stability,
hedging economic risks, and
enhancing confidence in the national currency, as well as
being an effective tool for hedging against inflation.
Which called on the Central Bank of Iraq several times and in successive years to enhance its balance of gold reserves, which reached 148 tons and 305 ounces.
Regarding the reason that prompted banks to rely on the yellow metal alone, financial expert Mahmoud Dagher explained to “Al-Sabah” that
the reason for central banks, including the Central Bank of Iraq, to increase their purchase of monetary gold is because it is suitable as a reserve compared to industrial gold, indicating that the
Chinese Central Bank and the Indian Reserve One of the largest buyers of gold in the world. Dagher added that the
Total reserves
Iraqi Central Bank increased its acquisition of gold more than once during the last two years, most recently in the first quarter of 2024, until the total reserves of gold reached 148 tons and 305 ounces after the last deal in May of 2024, amounting to 2 tons and 644 ounces. He explained that
Bank assets
although gold is not considered the best asset for achieving returns when investing compared to the currencies, deposits, and securities that are allowed to be acquired within the assets of central banks, it is a haven for balance among other assets whose values are affected by the nature of the economic cycle (recession and inflation), indicating that
gold is declining. Its price during recession and rises during inflation, reflecting its balancing role. He continued that
Global trend
gold is also a haven when currencies fluctuate against each other greatly, as happened in the last two years for the ruble, yuan and rupee currencies, and
thus reduces the impact of the so-called currency risks, pointing out that the
Iraqi Central Bank did not deviate from the global trend in purchasing gold despite The rise in its price accompanied the global inflation wave that hit the major economies until it approached 10%. Because
the rule for purchasing assets by central banks is based on the principle of buying an asset when its price falls in the hope of selling it when it rises, which did not happen in gold because expectations during the last two years were for gold prices to rise, in addition to the continued significant fluctuation of currencies among them.
Avoid inflation
For her part, the specialist in economic affairs, Dr. Ikram Abdel Aziz, said that
Iraq is the fourth Arab country in possessing large quantities of gold as an element indicative of the health of the Iraqi economy, indicating that
gold and hard currency reserves become a supportive means and an important framework for hedging and avoiding inflation and high prices.
Abdel Aziz added, in an interview with “Al-Sabah”: that
gold and foreign currency work to preserve the value of currency and the interest it accrues;
Therefore, countries seek to possess large quantities of gold, noting that possessing large quantities of gold reserves in light of the current fluctuations, geopolitical changes, and the situation of the Iraqi economy would be a safe haven to preserve value and hedge against inflation. She explained that the
Developmental paths
presence of large quantities of gold with the Central Bank of Iraq is an important element in reducing dollar control and reducing instability, noting that
Iraq achieved this increase in its gold reserves to serve development paths. She continued that the
Central Bank of Iraq has a variety of reserves, including gold, whose stock is an effective means and a basic pillar for maintaining purchasing power, stressing that the
presence of strong reserves and their diversity in the investment portfolio of the Central Bank of Iraq is a basic pillar and a factor restraining the rise in prices and hedging against inflation, and
thus confidence in the economic system is achieved. Al-Qaim.
https://alsabaah.iq/105777-.html
