CBI increases gold reserves by 2% in one day
Gold bars at the plant of gold and silver refiner and bar manufacturer Argor-Heraeus in Mendrisio, Switzerland. Photo: Reuters
Baghdad (IraqiNews.com) – The Central Bank of Iraq (CBI) increased its gold reserves by about 2 percent in one day last week as part of a plan to increase stocks of gold, which is considered a traditional haven in times of economic crises, Bloomberg reported.
“Iraq bought 2.5 tons of bullion on Thursday to bring its reserves to 132.73 tons,” the director general of the CBI’s investments department, Mazin Sabah, told Bloomberg.
Sabah explained that the strategy is to buy more gold in the second half of 2023.
“Our current plan is to buy small quantities several times, not a large quantity at once,” Sabah added.
Central banks around the world are expanding their bullion holdings amid mounting geopolitical and economic risks.
Iraq, the second-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), resumed its purchases of gold in 2022 after a 4-year stoppage as part of a program to diversify its foreign assets, estimated at $100 billion.
The CBI bought 34 tons of gold last June, representing an increase of 35 percent in its holdings.
The bullion is stored at the Bank of England and the Bank of France.
Sabah clarified that the CBI’s approach is to increase its reserves of gold whenever the price of the precious metal reaches a level compatible with investment management guidelines.