"REMEMBER SECURITY & STABILITY!!!" BY FRANK26, 21 OCT

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FRANK26: "REMEMBER SECURITY & STABILITY!!!".....F26

Financial Advisor: Increasing Iraq’s IMF Share Is a Step to Strengthen Dinar Stability

 

10/19/2024

 

The Prime Minister's Advisor for Financial Affairs, Mazhar Mohammed Salih, confirmed today, Saturday, that increasing Iraq's share in the International Monetary Fund represents an important step in confronting the economic challenges facing the country and stabilizing the value of the Iraqi dinar.

He explained that this increase constitutes an effective tool against exchange rate fluctuations and inflation problems, and contributes to enhancing investor confidence in the Iraqi economy.

Saleh pointed out that "Iraq maintains a reserve of gold within its foreign reserves, which is an important part of the official reserves of the Central Bank of Iraq."

He added: "Monetary gold is an essential means of supporting the value of the Iraqi dinar and achieving economic stability, especially in light of the economic turmoil that may affect foreign currencies."

 

He explained that rising inflation or depreciation of foreign currencies usually increases the price of gold, making gold an effective hedge against inflation and currency depreciation, adding that gold represents a long-term and stable investment compared to currency fluctuations, which enhances the diversification of the country's sovereign investment portfolio.

 

Saleh stressed that Iraq holds about 150 tons of gold, which constitutes a significant percentage of the country's foreign exchange reserves. He explained that these reserves are managed according to the standards of multilateral international financial organizations, which makes gold a suitable hedging tool and a safe haven for national currency reserves.

 

He also explained that the monetary authority in Iraq has worked in recent years to increase its gold reserves to ensure the stability of the Iraqi dinar and provide protection from economic fluctuations, noting that these economic policies have contributed to strengthening investors' confidence in the national economy.

 

The Iraqi Council of Ministers had previously approved increasing Iraq's share in the International Monetary Fund by the equivalent of 831.9 million Special Drawing Rights (SDR), or the equivalent of 1.45 trillion Iraqi dinars according to the exchange rate on October 8, 2024.

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