View Full Version : Iraqi Central Bank is expected to increase its activity for treasury bonds in 2010

03-11-2010, 12:09 AM
Central Bank of Iraq

Iraqi Central Bank is expected to increase its activity for treasury bonds in 2010

BAGHDAD: The Ministry of Finance and the Central Bank of Iraq in a letter of intent to the International Monetary Fund said Iraq is expected to increase its activities in the area of treasury bonds in 2010 to help bridge the budget deficit continues to support a secondary market for Treasury instruments.

Iraq has said in the letter that he wanted to encourage the development of the foreign exchange markets outside of the usual dollar auctions held by the Central Bank of way, including the interbank market and futures market in dinars.

Iraq stated in the letter submitted to arrange a standby loan of $ 3.6 billion dated on the eighth of February he had just come from years of sectarian fighting that followed the US-led invasion in 2003 and he would not return to a surplus in the budget before 2012.

Wrote central bank governor and finance minister in the letter say "at a time when our financial needs will continue in 2010, large Fsnazz our efforts to mobilize domestic financing through the market of treasury bonds.

"To this end we will hold auctions periodically and will abstain in the suppression, while we allow that the market is set for interest rates. This would have the additional benefits of identifying a key interest rate, while allowing the development of a secondary market for treasury bonds to banks to improve their management of liquidity."

They said that the country is planning to develop a sales tax "in the coming years."

The letter said that the gross domestic product of Iraq has increased four percent in 2009 compared with almost ten percent in the previous year. He said GDP growth would increase to about seven percent this year and between 7.5 and eight percent in 2011 and 2012.

Will be based on the improvement to increase oil production to 3.1 million barrels per day by 2012 from about 2.5 million bpd now, and increase exports to 2.5 million barrels per day from the level of slightly more than two million barrels at this time.

The report said the Iraqi Central Bank intends to create a market for foreign exchange outside of the dollar auctions held by the central bank now. The bank uses these auctions to determine the exchange rate remained constant at 1170 dinars to the dollar for several months.

The letter said "to improve the performance of foreign exchange auctions intend to develop markets outside the Exchange organization's central bank, including the foreign exchange market between banks.

"Our goal is to establish a futures market on the Iraqi dinar in
the near future."

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03-11-2010, 12:38 AM

Iraq has said in the letter that he wanted to encourage the development of the foreign exchange markets outside of the usual dollar auctions held by the Central Bank of way, including the interbank market and futures market in dinars.


1) FOREIGN EXCHANGE MARKETS (FYI) The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter (http://www.dinarspeculator.com/wiki/Over-the-counter_(finance)) financial market for the trading of currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends.
The purpose of the foreign exchange market 'Forex' is to assist international trade and investment. The foreign exchange market allows businesses to convert one currency to another foreign currency. For example, it permits a U.S. business to import European goods and pay Euros (http://www.dinarspeculator.com/wiki/Euros), even though the business's income is in U.S. dollars (http://www.dinarspeculator.com/wiki/U.S._dollars). Some experts, however, believe that the unchecked speculative movement of currencies by large financial institutions such as hedge funds impedes the markets from correcting global current account imbalances. This carry trade may also lead to loss of competitiveness in some countries.

(2) INTERBANK TRADING (FYI) According to an April 2004 report by the Bank for International Settlements, the foreign exchange market has an average daily volume of close to $2,000 billion, making it the largest market in the world. Unlike most other exchanges such as the New York Stock Exchange or the Chicago Board of Trade (http://www.dinarspeculator.com/), the FX market is not a centralized market. In a centralized market, each transaction is recorded by price dealt and volume traded. There is usually one central place back to which all trades can be traced and there is often one specialist (http://www.investopedia.com/terms/s/specialist.asp) or market maker (http://www.investopedia.com/terms/m/marketmaker.asp). The currency market, however, is a decentralized market. There isn't one "exchange" where every trade is recorded. Instead, each market maker records his or her own transactions and keeps it as proprietary information. The primary market makers who make bid and ask spreads in the currency market are the largest banks in the world. They deal with each other constantly either on behalf of themselves or their customers. This is why the market on which banks conduct transactions is called the interbank market (http://www.investopedia.com/terms/i/interbankmarket.asp).

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(3) CURRENCY FUTURES MARKET (FYI) Currency futures are futures markets (http://www.dinarspeculator.com/od/futures/a/WhatAreFutures.htm) where the underlying commodity is a currency exchange rate, such as the Euro to US Dollar exchange rate, or the British Pound to US Dollar exchange rate. Currency futures are essentially the same as all other futures markets (index and commodity futures markets), and are traded (http://www.dinarspeculator.com/od/futures/a/HowAreFuturesTr.htm) in exactly the same way.
Futures based upon currencies are similar to the actual currency markets (http://www.dinarspeculator.com/od/currencies/a/WhatAreCurrenci.htm) (often known as Forex), but there are some significant differences. For example, currency futures are traded via exchanges, such as the CME (Chicago Mercantile Exchange), but the currency markets are traded via currency brokers, and are therefore not as controlled as the currency futures. Some day traders prefer the currency markets, and some day traders prefer the currency futures. I recommend the currency futures as they do not suffer from some of the problems that currency markets suffer from, such as currency brokers trading against their clients, and non centralized pricing.

03-11-2010, 05:08 AM
thanks med this is great

03-11-2010, 06:34 AM
Wonderful news!Thnaks Med!!

Got-UR-back dino
03-11-2010, 07:36 AM
If you are thinking of trading currency futures and options, do your homework. Be advised of the risks. You can easily lose it all. Easily.

03-11-2010, 08:00 AM
thanks Med. We are greatful for the info you bring to us. we depend on you to keep us up to date on the info circulating over there while we are at our day jobs. THANKS !!!!!!!!!!!!!!! To you and your team