Economy News – Baghdad
The Prime Minister’s Advisor for Financial Affairs, Mazhar Mohammed Saleh, confirmed on Saturday that increasing Iraq’s share of international currency is a step towards facing economic challenges and the stability of the dinar, while pointing out that it is a tool against exchange rate fluctuations, inflation problems and enhancing investor confidence in the Iraqi economy.
Saleh told the official agency, followed by “Economy News”, that “Iraq keeps a reserve of gold within its foreign reserves, which is part of the official reserves of the Central Bank of Iraq, as cash gold is a means of supporting the value of the Iraqi dinar and achieving the desired economic stability.”
He added: “When inflation rises and the value of foreign currencies decreases, the price of gold usually rises, so gold is a hedge tool against inflation or currency depreciation, and is also a pattern of long-term investment and contributes to diversifying the country’s sovereign investment portfolio, because it is a stable asset compared to currency volatility.”
He continued: “Our country keeps about 150 tons of gold and constitutes a percentage of the country’s foreign currency reserves, as this reserve is managed according to the guidance evidence issued by international multilateral financial organizations, and it represents a hedging tool and a safe and suitable haven as an important part of the national currency cover.”
He pointed out that “the monetary authority in our country has sought in recent years to increase its gold reserves, in order to face economic challenges and ensure the stability of the Iraqi dinar.”
He pointed out that “gold remains a protective tool against fluctuations in exchange rates and inflation problems, and also contributes to strengthening investor confidence in the Iraqi economy.”
Earlier, the Council of Ministers approved an increase in Iraq’s share in the International Monetary Fund equivalent to (831.900000) SDR, or the equivalent of (1.45025127) trillion dinars, according to the exchange rate on October 8, 2024, provided that the amount of increase in the allocations for 2025 is guaranteed, and that the proposed increase will lead to an increase in Iraq’s share in the International Monetary Fund by 50% of the previous quota, and to increase Iraq’s voting power.
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Added 2024/10/19 – 11:26 AM
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