Central is preparing to launch bonds in local currency and asserts: We have a surplus of foreign currency

Author: ASJ, BS
Editor: BS

2015/08/26 18:37

Long-Presse / Baghdad
An informed source at the Central Bank of Iraq, on Wednesday, for the last willing to put up bonds for sale in the local currency, while pointing to a surplus of foreign currency in the country.

The source said in an interview with the (long-Presse), that "Iraq needs funds in local currency and not in hard currency, so the central bank is preparing to launch bonds in local currency for sale in order to strengthen the local currency."

The source, who asked not to be named, said "bonds that will be put forward will be available to all citizens and the various classes in order to take advantage of it will be local and national," noting that "the mechanism of sale will be announced in the near future."

The source continued that "there is a surplus in foreign currency in the country and, therefore, he went to the Central Bank to sell bonds in the national local currency away from the dollar selling."

The Central Bank of Iraq announced earlier, to take the necessary measures to support liquidity in the banking system, and decided to facilitate the procedures for the sale of foreign currency "to sustain the exchange rate."

The Central Bank of Iraq, said in (the 18th of January 2015), that the financial reserves of Iraq is equivalent to one and half times the weakness of the currency bloc, returned as "best rates" in the countries of the world, and as he emphasized that Iraqi financial institutions are "unable" to cover the fiscal deficit, he stressed the need to reconsider the structure of the budget and spending and to diversify sources of income and achieve the investment more broadly to address the decline in oil prices.