IMF: Iraq strengthens gold reserves for the first time in years

Iraq has taken the first big step in the years to strengthen its reserves of gold in the past few months to join other central banks of emerging market economies such as Brazil and Russia to diversify its foreign reserves.

The central bank purchases one of the main reasons behind the rise in gold prices since 2010, a year which saw central banks turned to buyers exclusive of the precious metal ahead for the first time in twenty years with growing doubts about the stability of the dollar’s status as the largest reserves in the world.

The monthly report showed the statistics of the International Monetary Fund on Thursday that during the three months between August and October this year doubled Iraq balances of gold to four-fold to $ 31.07 tons, according to the Reuters news agency.

In the first change in the reserves for years Iraq has bought about 23.9 tons in August, bringing the total to 29.7 tons. This was followed by an increase of 2.3 tons in September, bringing the total to 32.09 tons and stocks fell 1.02 tonnes in October to 31.07 tons. No information was available for the month of November.

Among other central banks raised Brazil balances of the yellow metal for the third consecutive month in November to promote by almost a third to 67.199 tons.

Russia has also added 2.86 tons to 937.82 tons and it reserves the eighth largest balances of gold in the world.

The data showed the World Gold Council that the United States, the largest stock in the world hold more than 8100 tonnes of the precious metal.

But some countries have reduced their holdings of gold, such as Turkey, Sri Lanka, Mexico and Mongolia.