The Prime Minister’s Advisor for Financial Affairs, Mazhar Mohammed Salih, confirmed on Saturday, that increasing Iraq’s share in the international monetary fund is a step to confront economic challenges and stabilize the dinar, while he pointed out that it is a tool against exchange rate fluctuations and inflation problems and to enhance investors’ confidence in the Iraqi economy.
Saleh told the Iraqi News Agency (INA): “Iraq maintains a reserve of gold within its foreign reserves, which is part of the official reserves of the Central Bank of Iraq, as monetary gold is a means of supporting the value of the Iraqi dinar and achieving the desired economic stability.”
He added: “When inflation rises and the value of foreign currencies falls, the price of gold usually rises, so gold is a hedge against inflation or the devaluation of currencies, and is also a type of long-term investment and contributes to diversifying the country’s sovereign investment portfolio, because it is originally stable compared to the volatility of currency values.”
Saleh continued: “Our country holds about 150 tons of gold, which constitutes a percentage of the country’s foreign currency reserves. This reserve is managed according to the guidelines issued by multilateral international financial organizations it represents a hedging tool and a suitable safe 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 explained that “gold remains a protective tool against fluctuations in exchange rates and inflation problems, and it also contributes to enhancing investor confidence in the Iraqi economy.”
Earlier, the Council of Ministers approved increasing 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 amount of the increase is included in the allocations for the year 2025, and that 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.
