Global Gold Hoarding Begins Over Dollar Stability

“Qu’ils mangent de la brioche,” is the most famous quote attributed to Marie-Antoinette, the queen of France during the French Revolution, words she probably never used. And still, she lost her head in the end.

Central banks are increasingly stockpiling gold, signaling growing apprehensions about the stability of the U.S. dollar.

Spearheaded by BRICS nations, the move aims to reduce reliance on the U.S. dollar in international trade, positioning gold as a strategic asset amidst fears of potential dollar depreciation and broader financial shifts.

The geopolitical landscape is rife with tension, presenting a narrative akin to a suspense thriller with far-reaching economic implications. Recent events, such as the devaluation of the U.S. dollar against the Iraqi dinar, underscore the urgency of these concerns.

In the Kurdistan Region, the value of the U.S. dollar plummeted to its lowest level in over ten months, sparking speculation about the potential parity of the IQD/USD exchange rate. Iraq, one of the central banks accumulating gold reserves, is positioning itself for economic resurgence, particularly upon reinstating its currency on the Forex Market.

The Investment Law of 2006 (amended in 2015) seeks to attract foreign investment across various sectors, yet challenges persist, including security risks and bureaucratic obstacles. Amidst these developments, the Iraq Parliamentary Finance Committee recently reassured employees and retirees about their financial entitlements in the 2024 budget.

However, these initiatives hinge on a crucial factor: the new exchange rate.

As Iraq prepares to unveil its 2024 budget, expectations are high for changing economic measures. The budget schedule includes infrastructure investments and enhanced financial entitlements, including those outlined in the Hydrocarbon Law (HCL.)

The HCL, a constitutional mandate, aims to allocate revenues from Iraqi oil and gas exports to its citizens, adding to their purchasing power and economic stability.

As President Joe Biden allegedly said as he gave taxpayer monies away, “Let them eat ice cream.” And while he has not lost his head, neither did he suffer brain freeze. And why he doesn’t is still a mystery to legacy media.