Iraq’s Central Bank reports growth in gold reserves, low inflation

Shafaq News/ Iraq’s Central Bank (CBI) announced significant growth in its gold reserves, describing the country’s inflation rates in August and September 2024 as among the lowest in the region.

In a statement outlining third-quarter economic indicators, the Central Bank attributed the positive developments to its monetary policies implemented throughout 2024.

The bank reported a 57% increase in gold reserves, which reached 16.8 trillion dinars in the third quarter, compared to 10.7 trillion dinars during the same period in 2023.

It also noted that Iraq’s annual inflation rates were 3.7% in August and 3.1% in September, reflecting what the bank called “price stability and effective monetary policy.”

“Total deposits in Iraqi banks grew by 4.2% in the third quarter of 2024, amounting to 127.6 trillion dinars compared to 122.4 trillion dinars in the same quarter of 2023. Credit extended by public banks rose by 11.6%, reaching 72.7 trillion dinars, up from 65.1 trillion dinars a year earlier.” CBI said.

Private banks also saw notable growth, with deposits “increasing by 14% to 18.7 trillion dinars and credit rising by 15.1% to 12.2 trillion dinars.”

“These figures reflect growing trust in private banking institutions.”

In addition, deposits from the private sector increased by 3% to 56.1 trillion dinars, while credit extended to the sector grew by 8.6%, reaching 42.8 trillion dinars in the third quarter of 2024.

The Central Bank reported a 4.1% increase in narrow money supply, which totaled 158.6 trillion dinars, compared to 152.4 trillion dinars in 2023. The broad money supply rose by 3.3% to 179.8 trillion dinars.

The bank highlighted the growth in reserves and credit as indicators of economic stability and increased confidence in the financial sector.