Al-Kazemi’s advisor: Gold is a heavy commodity and its monetization is difficult

Al-Kazemi’s advisor: Gold is a heavy commodity and its monetization is difficult

2021-11-11 07:58

Al-Kazemis advisor - Gold is a heavy commodity and its monetization is difficultShafaq News/ The financial advisor to the Prime Minister, Mazhar Muhammad Salih, said today, Thursday, that the central banks’ reserves of gold come as part of a balanced basket with the rest of the currencies, considering the yellow metal “a heavy commodity and its liquidation is difficult.”

Saleh told Shafaq News Agency, “All central banks in the world hedge reserves of currencies that are securities whose credit rating is very high, in addition to gold, which these reserves must be of low risk,” noting that “there must be a balanced basket of different currencies.” to maintain the purchasing power of the reserves.

He added, “These reserves consisting of currencies and gold do not come randomly, but rather depend on global evidence that is mentioned and issued by the International Monetary Fund from time to time,” noting that “part of these reserves is monetary gold so that the country’s investment portfolio is low in risks and the so-called exchange rate fluctuations and decline The value of currencies, so the country hedges a diversified basket and part of the diversity is gold.”

Saleh pointed out that “gold is usually not hedged, and it is partial and does not exceed 10% of the reserves of central banks,” noting that “monetizing gold is difficult, and it is a heavy commodity, not like other currencies that can be bought and sold in moments.”

According to the World Gold Council, Iraq possesses in its reserves 96.4 tons of gold, which represents 9% of the rest of its other currencies. Iraq ranks 39th globally among the largest gold reserves, and fifth in the Arab world after Saudi Arabia, Lebanon, Algeria and Libya.

shafaq.com