The Central Bank of Iraq’s Investment Department said the purchase was intended to increase its gold holdings in light of the economic and political conditions facing the world.
Central banks around the world are increasing their holdings of bullion amid growing geopolitical and economic risks. Iraq, the Organization of the Petroleum Exporting Countries (OPEC) second largest oil producer, resumed gold buying in 2022 after a 4-year hiatus, as part of a program to diversify its external assets amounting to approximately $100 billion.
The Central Bank of Iraq purchased 34 tonnes of gold last June, a one-time increase of 35% in its holdings. The bank stores bullion with the Bank of England and the Bank of France.
Gold, which was within walking distance of a record high earlier this month, suffered a third straight weekly loss as signs of resilience in the U.S. economy raised the possibility that the Federal Reserve would continue to weaken. raise interest rates. The metal is more attractive to investors for returns when prices are low.
Central bank demand for gold fell to 228.4 tonnes in the first quarter, down 40% from the previous three months, according to a report by the World Gold Council.
It should be noted that gold is one of the most important components of the reserves held by banks and international financial institutions, since these banks and institutions are constantly increasing their reserves of this metal, due to the positive impact of this measure on the financial solvency of these institutions and the solvency of their country.
The 10 countries with the most gold in the Arab world… by the end of 2022
Saudi Arabia topped the list of Arab countries with the most gold, with reserves amounting to 323.1 tons, followed by Lebanon in second place, with around 286.8 tons.
In third place came Algeria with reserves of 173.6 tons, and in fourth place came Iraq with reserves of yellow metal amounting to 130.3 tons.
While Egypt came in fifth place in the list of Arab countries with the most gold, with reserves amounting to 125.5 tons, followed by Libya, which has about 116.6 tons.
And in seventh place, Qatar came in the list of countries with the most gold reserves in the Arab region, with about 91.8 tons.
The United Arab Emirates came in eighth place with reserves of 79.9 tonnes, and Kuwait ranked ninth with around 79 tonnes, while Jordan concluded the list of Arab countries with the most gold with 43. 5 tons.
In 11th place, Syria arrived in the list of the most Arab countries with gold reserves amounting to 25.8 tons, according to data from the World Gold Council.
It was followed in the ranking by Morocco with reserves of 22.1 tons, followed by Tunisia with about 6.8 tons, while Bahrain ranked 14th with reserves of 4.7 tons.
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