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The Iraqi government reveals the reasons for the lack of gold in its reserves compared to other currencies
Economy Iraq breaking gold
2024-11-13 03:23
Shafaq News/ Mazhar Muhammad Saleh, the financial advisor to the Prime Minister, revealed on Wednesday the reasons for the lack of gold in the state’s reserves compared to other hard currencies. Saleh said in an interview with Shafaq News Agency,
“Some countries still only hold quantities of gold as part of their cash reserves, as the greatest
focus today is on other assets that can be quickly and easily converted into productive assets that generate returns in the long term.” He added,
"Countries are moving away from using gold as the main store of their cash reserves for several reasons related to
international economic developments and
changes in the nature of modern financial systems, which are restricted by the following main reasons, including
low returns compared to other assets such as:
investing in deposits, or
government bonds with a very high credit rating."
“And it is risk-free, so gold does not achieve fixed returns like government bonds.” Saleh continued, Therefore,saying:
“the majority of countries prefer to keep assets that generate a fixed and stable income, such as: American or European treasury bonds that can truly generate annual interest, and the difficulty of
dealing with gold in times of crises is difficult, as
it is difficult to convert gold into liquidity quickly.” Compared to other financial assets such as foreign currencies and bonds. He explained that
"the changes in the global financial system since World War II have imposed conditions in which most countries have come to rely on the US dollar as a major reserve, given that
it is the most accepted and used global currency in international transactions, which makes
keeping the dollar or assets associated with it a more flexible option."
The advisor to the Prime Minister pointed out that
“the cost of storing gold requires safe spaces to protect it from theft or damage, which may represent an additional burden compared to digital financial assets or liquidity.” He pointed out that
"countries are seeking to diversify their reserves to include different currencies and various financial assets to achieve greater stability, instead of relying solely on gold to avoid the cycle of gold assets and its problems.
Therefore, the standard rule is that gold should not exceed, on average, 10% of the total value of countries' reserves."
Iraq has a hard currency reserve of about 100 billion dollars, and 152 tons of gold in its reserves, which is equivalent to about 12 billion dollars.
https://shafaq.com/ar/اقتصـاد/الحكومة-العراقية-تكشف-سباب-قلة-الذهب-في-احتياطياتها-زا-العملات-الاخرى
Economy Iraq breaking gold
2024-11-13 03:23
Shafaq News/ Mazhar Muhammad Saleh, the financial advisor to the Prime Minister, revealed on Wednesday the reasons for the lack of gold in the state’s reserves compared to other hard currencies. Saleh said in an interview with Shafaq News Agency,
“Some countries still only hold quantities of gold as part of their cash reserves, as the greatest
focus today is on other assets that can be quickly and easily converted into productive assets that generate returns in the long term.” He added,
"Countries are moving away from using gold as the main store of their cash reserves for several reasons related to
international economic developments and
changes in the nature of modern financial systems, which are restricted by the following main reasons, including
low returns compared to other assets such as:
investing in deposits, or
government bonds with a very high credit rating."
“And it is risk-free, so gold does not achieve fixed returns like government bonds.” Saleh continued, Therefore,saying:
“the majority of countries prefer to keep assets that generate a fixed and stable income, such as: American or European treasury bonds that can truly generate annual interest, and the difficulty of
dealing with gold in times of crises is difficult, as
it is difficult to convert gold into liquidity quickly.” Compared to other financial assets such as foreign currencies and bonds. He explained that
"the changes in the global financial system since World War II have imposed conditions in which most countries have come to rely on the US dollar as a major reserve, given that
it is the most accepted and used global currency in international transactions, which makes
keeping the dollar or assets associated with it a more flexible option."
The advisor to the Prime Minister pointed out that
“the cost of storing gold requires safe spaces to protect it from theft or damage, which may represent an additional burden compared to digital financial assets or liquidity.” He pointed out that
"countries are seeking to diversify their reserves to include different currencies and various financial assets to achieve greater stability, instead of relying solely on gold to avoid the cycle of gold assets and its problems.
Therefore, the standard rule is that gold should not exceed, on average, 10% of the total value of countries' reserves."
Iraq has a hard currency reserve of about 100 billion dollars, and 152 tons of gold in its reserves, which is equivalent to about 12 billion dollars.
https://shafaq.com/ar/اقتصـاد/الحكومة-العراقية-تكشف-سباب-قلة-الذهب-في-احتياطياتها-زا-العملات-الاخرى
