Building bonds
We have often referred to the importance of employing the hoarded monetary mass in dealing with the financial crises that the country has witnessed, and we have repeated in more than one article the possibility of directing this employment in directions aimed at revitalizing the market movement and getting out of the successive cases of downturn that the local markets witnessed during the successive financial crises that followed the country after the year 2014 following the entry of terrorism and the escalation of the need for spending in order to finance the war machine and the logistical effort in conjunction with the drop in oil prices, and then the urgent need to finance the construction and reconstruction machine in the provinces affected by terrorism, and the subsequent stages that were crowned by the Corona pandemic with a global closure that led to economic stagnation and a decline in The rates of global trade movement, which caused a drop in oil prices again, as well as a clear depression in the movement of local markets due to the depreciation of the currency exchange rate local.
Now with the rise in oil prices, whose revenues can be scientifically employed according to a national program to advance the macroeconomic scene, the indebtedness file can be addressed and foreign debts that can confiscate the Iraqi national decision can be confiscated in the context of creditors’ requirements, at a time when other available financial tools can be employed. , and this was demonstrated through the launch of building bonds, which is a wonderful idea to move the hoarded cash mass, which the Central Bank estimates at about 70 percent of the issued cash amounting to 44 trillion Iraqi dinars.
Bonds are debt instruments that governments and companies resort to to finance their projects, as these bonds are issued as securities of a certain value, so that the bond owner is a creditor to the issuer of the bond, in return for a financial return in a specific period of time, and this method is one of the investment vessels to collect a certain amount with the aim of financing a project What, in what can this method be employed in the case witnessed by the Iraqi financial market, which suffers from the decline of the monetary mass from the banking circulation arena, as only 30% of the issued monetary mass moves, which is a major imbalance in the monetary and financial system, so the bonds here are a tool From the toolkit to withdraw the chunky cash block.
The success of the bond issuance experience will not only contribute to the movement of hoarded funds, but will also contribute to strengthening the state of trust between the banking sector and the public, in addition to devoting a culture of savings and spreading banking awareness. The exchange rate, to refute what is said in this regard, and to encourage the public to trade and exchange.