Iraq Buys Gold In Large Quantities.. And An Expert Reveals The Reason, 7 DEC

 Iraq Buys Gold In Large Quantities.. And An Expert Reveals The Reason

Time: 2024/12/05 Read: 2,691 times  {Economic: Al Furat News} An economic expert revealed the reason behind Iraq’s import of large quantities of gold.

Manar Al-Obaidi said in a statement received by {Euphrates News} that "according to data on exports from countries, specifically the UAE, which has become the largest exporter to Iraq in terms of value, we find that more than 42% of the UAE's exports to Iraq are gold."

He explained that "the main reason for importing these quantities is due to its use as an alternative to the dollar in trade exchange with some countries that are prohibited from dealing with banks, and as a result of the lack of cash dollars in the markets, it is replaced by importing gold from outside Iraq, and then trade is carried out using this metal."

He pointed out that "the expected value of gold from the UAE until the end of 2024 will be between 12-18 billion dollars, in addition to mobile phones, the volume of their exports from the UAE alone ranges between 6-8 billion dollars."

Al-Obaidi continued, "There are approximately 20-24 billion dollars in goods that are imported, which are not used for local consumption, but are reused in foreign trade exchanges."

He pointed out that "inflation rates in Iraq have decreased to less than 3% as a result of the ability to import goods from various entities that are prohibited from dealing with banks using gold and mobile phones. "

He stressed that "the hedge that citizens are looking for for their savings in times of crisis tends to buy gold instead of keeping the local currency and also the disappearance of the cash dollar from the market."

The economic expert said, "As a result, Iraq has no alternative except by establishing an electronic clearing system between it and the countries that are prohibited from dealing with banks, and then there will be no need for these complex mechanisms to cover trade exchange without the need to go through the global banking system and the inability to cover imports from these countries."

The World Gold Council announced on November 6 that Iraq had raised its gold holdings to more than 152.5 tons.

According to a table published by the council for November 2024, "Iraq ranked 29th out of 100 countries listed in the table with the largest gold reserves," indicating that "Iraq ranked third in the Arab world after Saudi Arabia and Lebanon."

He added, "Iraq increased its gold holdings to 152.6 tons, after it had held 152.5 tons, which represents 11.5% of its remaining reserves."   LINK