Iraq Central Bank Boosts Gold Reserves
The Iraqi Central Bank has adopted a policy of buying gold for its central reserve at a time when gold prices are at an all-time high, writes Omar al-Shaher.
Despite the attention given by Iraqi media to the increase of gold reserves, locals are still oblivious to the repercussions of such an act on their daily affairs.
The monthly statistical report of the International Monetary Fund stated that over the three months between August and October of last year, Iraq’s gold holdings quadrupled to 31 tons, the first time something like this has happened in years. The value of gold as a strategic reserve has grown over the past few years due to the continued instability of the U.S. dollar exchange rate.
International banks perceive gold as having long-lasting value that is not affected by rapid economic development. Gold can be used to compensate for insufficient cash reserves in the wake of political or economic crisis. In that context, Iraq is probably the country that is most in need of a great deal of gold reserves given its succession of political and economic crises.
“Gold is the first shelter for countries in times of crisis,” said the Iraqi economic analyst Majid al-Suwari.
