Iraq boosts gold reserves as global prices hit record highs

Shafaq News – Baghdad

Iraq has increased its gold holdings, now accounting for nearly 15% of its foreign reserves, as global prices climb past $4,000 per ounce amid geopolitical tensions and waning confidence in the US dollar.

Prime Minister’s adviser Mudhir Mohammed Saleh told Shafaq News on Tuesday that the strategy is a “precautionary hedge” against currency risk. “Gold remains the most reliable store of value in unstable times,” he said.

Saleh added that Iraq’s diversification policy follows international standards and strengthens long-term monetary stability.

Domestically, 21-karat gold now sells for 820,000–833,000 dinars (around $625) per mithqal in Baghdad and Erbil, with demand rising as Iraqis seek protection from dinar volatility.

The rally reflects surging global demand as conflicts in Ukraine, the Middle East, and East Asia push investors and central banks toward bullion. In August, central banks added 19 tons to their reserves, led by China’s 300-ton gold purchases in 2024 to cut dollar exposure, according to the World Gold Council.