Iraq's plan to stop the issuance of international bonds because of the high yield.
Alsumaria News / Baghdad
Announced the central bank, Sunday, for the extension of the sale of special bonds for the benefit of the Ministry of Finance one month, adding that he will sell the bonds in Iraqi dinars at a price of 1095 dinars per dollar.
The bank said in a statement received by Alsumaria News, a copy of which he "will extend the sales value nominal bond-term delivery in the currency of the US dollar on behalf of the Ministry of Finance to be up to 31 of October,rather than September, which announced it in advance, "adding that" Asdarih will be four categories (2,500 to 10,000 and 50,000 and 100,000) US dollars and the total amount of two billion dollars. "
The bank said it "will sell the bonds in Iraqi dinars at a price of 1095 dinars per dollar, and is payable by the Ministry of Finance in March 312 017 to be paid in dollars maturity".
And founded the Iraqi Central Bank independent bank under the law issued on the sixth of March of 2004, as an independent body, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies are being daily for the sale and purchase of foreign currencies sessions except public holidays which stops by the Bank for these auctions.
So one of three things is in play here…
1) They couldn’t sell the bonds (no one was interested)…
2) The yield was too high (as is the interest rate on these international loans)… I did say international investors would buy – but they would want a premium for this risk (as in BIG MONEY)…
3) They have another solution to their budget crisis they intend to move on… (which they always have had)… HINT – MONETARY REFORM.