Iraq boosts its reserves of "precious metal"
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Experts and researchers in the economic affairs considered the purchase of new quantities of the yellow metal as a "right direction" by the Central Bank of Iraq, pointing out that many countries of the world are striving to possess it in support of their reserves due to the state of apprehension resulting from the geopolitical and economic instability that dominates the global scene. .
The Central Bank of Iraq recently announced the purchase of new quantities of gold of approximately 2.3 tons, which resulted in an increase in its possession of this metal by 1.79 percent, bringing the total that Iraq possesses (132.74) tons, maintaining its sequence in the rank (30) in the ranking. Possession of gold for the countries of the world.
Economist Dr. Nabil Al-Marsoumi said to "Al-Sabah": "The trend towards the acquisition of the precious metal represents an important and desirable matter in monetary policy, in addition to being a wise act by the Central Bank of Iraq that simulates the behavior of central banks in the world."
Al-Marsoumi added, "The United States of America has the largest gold reserves in the world, estimated at 8,000 tons, followed by Germany, and Iraq is currently moving in this direction to diversify its investment portfolio," noting that "gold constitutes about 9 percent of international reserves."
The spokesman believes that the acquisition of gold represents a correct global trend by central banks as a result of its continuous rise, so that global central banks go to buy more of it in support of international reserves due to fears of an imminent economic recession, which leads to preferring hedging from it to avoid global inflation.
Al-Marsoumi indicated that it is expected that central banks will continue to purchase the precious metal in the short term due to the state of geopolitical and economic instability that dominates the global scene as a result of the Ukrainian war and before that the Corona pandemic, pointing out that Iraq is working to maintain its thirtieth position in the ranking of countries in possession of gold. In turn, the researcher in economic affairs, Imad Al-Muhammadawi, told Al-Sabah: Several countries are seeking to possess gold, with the aim of doubling their reserves of the precious metal and thus increasing their hedges to confront inflation due to their apprehension about the future of the global economy, pointing out that Iraq is not the only country that seeks that, but most International banks tend to support their international reserves.
Al-Muhammadawi confirmed that the data issued by the World Gold Council indicated that international investment funds purchased 32 tons of gold last March for the current year 2023, which is equivalent to $1.9 billion.
It is noteworthy that the Investments Department of the Central Bank of Iraq made it clear that the purchase process came with the aim of increasing its possession of gold in light of the economic and political conditions that the world is witnessing, noting that gold is one of the most important components of the reserves held by banks and international financial institutions, as these banks and institutions deliberately To increase its reserves of this metal on an ongoing basis, because this procedure has a positive impact on the financial solvency of these institutions and the creditworthiness of their countries.
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