Central bank buys 36 tons of gold

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By Shaymaa Adel

Azzaman, March 27, 2014

The Central bank has almost doubled its gold reserves after a large purchase of 36 additional tons of the precious metal.

“This month (March) the Central Bank purchased 36 tons of god,” said a statement issued by the bank. “The purchase is a corner stone of the country’s financial policy to achieve stability for the dinar’s exchange rate.”

Last year, the bank put its gold reserves at 30 tons and hard cash at $76 billion.

The purchase of gold of a high degree of purity and in accordance with international standards is a key pillar in Iraqi Central Bank policies for the stabilization of the exchange rate, the statement said.

It added: “The target behind purchasing gold is to administer the country’s foreign reserves to achieve stability and safety” for the Iraqi economy and the dinar’s value vis-à-vis the dollar.

The bank is issuing gold bars of different weights from 5 grams to one kilogram and offers them to goldsmiths and the ordinary Iraqis willing to save their reserves in gold.

The gold is priced and exchanged locally in Iraqi dinars.