🏦💰 Central Bank Shocker: Gold Surges as Debt Holds Iraq Hostage! 💥🌟

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 🏦💰 Central Bank Shocker: Gold Surges as Debt Holds Iraq Hostage! 💥🌟

Highlights:

  • 📉 Securities Drop: From 37% in 2022 down to 27% in 2025, reducing banks’ liquidity tools and flexibility.

  • 🥇 Gold Soars: Gold holdings double from 6% to 12.6%, signaling a flight to safety amid market fragility.

  • 💸 Bank Deposits Rise: Other bank deposits increased to 26%, boosting the Central Bank’s maneuverability.

  • 🏛️ Government Debt Remains High: Ministry of Finance dues stay steady, showing deep ties between monetary policy and government finances.

  • ⚠️ Loans to SMEs Up: From 5% to 7%, offering hope for growth but risks if repayments fail.

  • 🌍 Foreign Investments Decline: From 62% to 53%, reflecting inward reallocation but lost returns from global markets.

  • 🔄 Monetary Stability at Risk: Over one-third of assets are loans/liabilities, tying the Central Bank’s fate to government debt.

  • 🔑 Need for Reform: Gold and liquidity provide safety margins, but only a clear fiscal-monetary decoupling can restore true stability.


Source: Manar Al-Obaidi (Economic Expert), Baghdad Today
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