Baghdad – INA – Amna Al-Salami
The Prime Minister’s Advisor for Financial Affairs, Mazhar Muhammad Salih, confirmed today, Saturday, that increasing Iraq‘s share of international currency is a step to confront economic challenges and stabilize the dinar, while noting that it is a tool against exchange rate fluctuations and inflation problems and enhancing investors’ confidence in the Iraqi economy.
Saleh told the (INA): “Iraq maintains a gold reserve within its foreign reserves, and it is part of the official reserves of the Central Bank of Iraq, as monetary gold is a means to support the value of the Iraqi dinar and achieve the desired economic stability.”
He added: “When inflation rises and the value of foreign currencies decreases, the price of gold usually rises. Therefore, gold is a hedging tool against inflation or the decline in the value of currencies. It is also considered a type of long-term investment and contributes to diversifying the country’s sovereign investment portfolio, because it is an inherently stable asset compared to the fluctuation of the value of currencies.” “Currencies”.
He continued: “Our country reserves approximately 150 tons of gold, which constitutes a percentage of the country’s foreign currency reserve. This reserve is managed in accordance with the guidelines issued by multilateral international financial organizations, and it represents a hedging tool and a safe and appropriate haven as it is 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 confront economic challenges and ensure the stability of the Iraqi dinar.”
He stated that “gold remains a protection tool against fluctuations in exchange rates and inflation problems, and it also contributes to enhancing investors’ confidence in the Iraqi economy.”
Earlier, the Council of Ministers agreed to increase Iraq’s share in the International Monetary Fund by the equivalent of (831,900,000) SDR, or the equivalent of (1.45025127) trillion dinars, according to the exchange rate on October 8, 2024, provided that the increase amount is included in the allocations for the year 2025, The proposed increase will lead to an increase in Iraq’s share in the International Monetary Fund by 50% of the previous share, and to an increase in Iraq’s voting power.