Iraq gold reserves reported a major rise in its gold reserves, marking a 45.1% increase in the last quarter. Reserves jumped from IQD 12.29 trillion to IQD 17.83 trillion, which equals $13.6 billion. This rise came from two main factors: more gold purchases and rising global gold prices.
The Central Bank of Iraq explained that this sharp increase will help the country’s financial system in several ways. First, it adds strength to economic and financial stability. Second, it reduces risks in times of market uncertainty. Third, it supports Iraq’s currency if market conditions demand intervention.
This move reflects a growing trend among central banks worldwide. Many countries now seek to protect their economies by boosting gold reserves. For Iraq, the strategy also supports long-term stability in its financial system.
Moreover, this gold reserve growth provides Iraq with more tools to manage inflation and defend the dinar. Currency market intervention becomes easier when reserves are strong. Therefore, this increase gives policymakers more flexibility in shaping economic responses.
At the same time, Iraq gold reserves global gold prices continue to climb. As a result, Iraq’s existing gold became more valuable. The timing of Iraq’s reserve buildup shows careful planning by financial leaders. It allowed the country to benefit from both quantity and price gains.
This policy shift shows a broader effort by Iraq to protect its financial future. Building gold reserves is part of a larger strategy to reduce dependence on oil revenue. It also helps Iraq build buffers for external shocks, such as trade issues or currency pressure.
Central banks often turn to gold during uncertain times. As markets change quickly, gold remains a trusted store of value. Iraq now follows this path, aiming to create a safer and stronger economy for the long term.
Looking ahead, Iraq may continue to boost reserves as part of its economic reforms. The move supports efforts to attract investment and boost confidence in Iraq’s financial system. It also signals that the country is serious about managing risk and creating growth.