Iraq has achieved a major achievement in the launch of foreign bonds

10/10/2017

BAGHDAD / Tariq al-Araji
The Central Bank of Iraq expressed its readiness to launch foreign Treasury bonds in the event that the next year's budget requires 2018 after the Central Bank achieved great success in the issuance of foreign bonds through the previous global confidence gained in dealing with Iraq, revealing the high reserve bank of foreign currency compared to With the previous year.

Governor of the Central Bank d. Ali Al-Allaq said that the launch of such bonds may have a positive impact on the reserves of the Central Bank, considering that the amounts received in foreign currency, if not have a positive impact does not have a negative impact,

because the dollar bonds are transferred by the Ministry of Finance to the dinar by The Central Bank is the case is neutral, and there is no negative impact, but positive, as it is a strengthening of the reserves of the Central, which is the agent of the government and manages such

operations. Positive indicators


"The decision to launch the bonds is not done by the government through the public budget because it is launched only by law, and there are positive indicators in the case of the need to issue such bonds, and there is a successful experiment if it is decided in the budget for 2018 there will be foreign bonds.

The Central Bank has succeeded in performing its tasks through internationally known indicators through the rate of inflation and maintain the exchange rate and reserves.

He said: There has been a state of adjustment to the financial situation of the country, and there was a shock in 2016 difficult to adjust directly, so the central bank tried to bridge the gap and the deficit and the large deficit, to absorb this shock by playing a key role in coordination with the government to overcome this shortage

And has been able to deduct money transfers in very large amounts now with the state of adjustment and measures taken by the government to control expenditure and increase domestic revenues and not to resort to the Central Bank so far this year to buy money transfers or

other. The price of oil improved and stressed that this helped the Central Bank to maintain the level of reserves, which did not fall during 2017 compared


By 2016. The improvement in oil prices was a factor in addition to the reduction of government expenditures because the government did not resort to the central bank to buy treasury transfers, although this was found in the budget law and part of the deficit covered by the purchase of the Central Bank of remittances, but so far the government did not resort to this
Option.

He said that the central bank reserves now stood at 48 billion and the previous year fell to 45 billion. Therefore, this level of inflation and reserves currently measured by international standards as reserves convenient for Iraq compared to the local currency, and this exceeded the expectations of the International Monetary Fund for reserves of more than 7 billion dollars In addition to the Fund's expectations and estimates. External financing is an option


He pointed out that the resort to external financing is one of the options included in the deficit coverage, because the size of domestic domestic debt reached high levels difficult to expand, because this affects the liquidity of banks that buy part of the remittances of the treasury and options to cover the deficit and what is discussed At the present time,

the size of the possibility of external financing through issuing international bonds and issuing them in the future has not been determined or encouraged, due to the large

demand in the volume of demand which was on the bonds provided by Iraq,

which amounted to six or seven times the amount required in addition to the large number of institutions and international banks It requested an increase in the amount of bonds but the amount was within the limits of the
state budget.


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