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 ofsuch 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. Improved oil prices and stressed the fact that this helped the central bank to maintain the level of reserves that did not fall during 2017 compared to 2016, and the improvement in oil prices as a factor in addition to reducing government expenditures for the failure of the government to the Central Bank to buy money transfers, although this was in The budget law and part of the deficit covered through the purchase of the Central Bank of remittances Treasury, but so far the government has not resorted to this option. He said that the central bank’s reserve 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, which 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 one of the options. He pointed out that resorting to external financing is one of the options to cover the deficit, because the size of local domestic debt reached high levels that are difficult to expand because it affects the liquidity of banks that buy part of the treasury transfers and options to cover deficit and what is being discussed with the present or to decide the size of the possibility of external financing through the issuance of international bonds issued in the future encouraging the large turnout is not specified in the demand , which was on the bonds provided by Iraq , which amounted to six or seven times the amount required size in addition to the number of Large institutions important international banks requested an increase in the amount of the bond, but the amount within the specified general budget of the state.