People have no means of storing their money except through purchasing gold due to the lack of a safe place.
NEW DELHI(BullionStreet): Just like people in neighbouring Iran, Iraqi's are fast converting thier money into gold as the country remained hit by terrorism and sectarian violence.
Analysts said most Iraqi's feared that the government may be unable to maintain economic stability as the country witnessing terrorist attacks on a daily basis.
Absence of a trustworthy banking system, especially in the northern regions also prompting people to converting their money into gold and stashing it in their homes.
People have no means of storing their money except through purchasing gold due to the lack of a safe place. Citizens do not trust banks, whether in the public or private sector.
Analysts also added that due to lack of a market for securities, stocks and bonds, citizens have no options for storing and saving money other than buying gold and keeping it in their homes.
Some analysts said improved economic situation in Iraq, despite growing violences, have pushed citizens to rely on gold as a way to save their money, given that it is easy to store.
Even gold shops become targets for armed robbery, and some jewelers have been killed, prompting many of them to move to cities in the Kurdistan Region.
The Department of Standards and Quality Control for Gold and Minerals in the Kurdistan Region acknowledges that, indeed, large quantities of gold are being imported and distributed.
The department said in the first six months of this year nearly 50 tons of gold have been imported into Iraq through the Erbil and Sulaimaniyah airports.Gold imports to Iraq are mainly from Turkey and UAE
The department is in charge of issues concerning silver and platinum as well as gold. The department licenses jewelers and gold companies and inspects jewelers' shops.
It controls the gold that comes into the region through testing, taking samples from shops and companies, and responding to complaints filed by citizens.