Iraqi Central Bank

[dbcooper]

I hope this is not a repeat article..dbcooper

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."

http://www.darabeen.com/index.asp?fn...209:43:54%20PM

[lifechanging]

Thanks for posting this DBC ...

[usc73man]

Thanks for the Post. RON

[IcemanSC]

Thanks for the post.