How can Iraq address economic crises using gold?
How can Iraq address economic crises using gold?
2026-04-25
Shafaq News – Baghdad
On Saturday, economist Mohammed Al-Hassani revealed the benefits of Iraq possessing 174 tons of gold reserves, stressing that the yellow metal helps in confronting economic crises.
Al-Hassani told Shafaq News Agency that “the gold reserve places Iraq within the framework of defensive gold strategies, as some economies rely on the precious metal as a primary refuge to enhance financial stability and confront economic fluctuations.”
He added that “gold is not just a financial asset within central bank reserves, but represents a well-considered strategic choice linked to several considerations related to monetary stability and risk management in the global financial system.”
Al-Hassani explained that “behind every ton of gold in the vaults of central banks is a set of integrated economic policies, the most prominent of which is strengthening monetary credibility, as gold contributes to supporting confidence in the national currency, especially in economies that face challenges in their financial institutions or fluctuations in their monetary stability.”
He pointed out that among the essential functions of gold is also enhancing the ability to withstand financial sanctions, given the difficulty of freezing physical assets of gold bullion compared to foreign assets or other financial reserves, which gives countries a greater margin of flexibility in managing their crises.
Al-Hassani pointed out that gold plays an important role in diversifying the investment portfolios of central banks, as it is characterized by its low correlation with traditional financial assets, which contributes to reducing the severity of economic shocks and improving the stability of reserves during times of crisis.
The economist concluded by emphasizing that large gold reserves give countries greater ability to cope with financial pressures, whether related to exchange rate fluctuations, banking crises, or sudden capital outflows, making gold a pivotal element in assessing the strength and financial stability of sovereign economies.
The World Gold Council announced earlier on Saturday that Iraq maintained its position among the largest holders of gold reserves globally, remaining in 29th place out of 100 countries, with reserves amounting to 174.6 tons.
Statistics reviewed by Shafaq News Agency showed that Saudi Arabia topped the list with a reserve of 323.1 tons, followed by Lebanon in second place with 286.8 tons, while Iraq came in third with 174.6 tons, maintaining its advanced position in the Arab world.
shafaq.com
