Central Bank plans to issue bonds in local currency for the first time since 2003

12/11/2013 20:59


The central bank governor said that the first tranche of bonds is expected to be worth three billion Iraqi dinars


BAGHDAD / obelisk: Abdul Basit Turki said Governor of the Central Bank of Iraq on Tuesday that Iraq plans to issue bonds in local currency for the first time since the overthrow of Saddam Hussein, which would allow the country's new tool of monetary policy.

Turki said on the sidelines of a conference in Geneva that the first tranche of bonds is expected to be worth three billion Iraqi dinars ($ 2.58 million).

He added that this will be the first time that the issuance of bonds for fiscal policy and not for the purpose of funding.

Turki said he expected that the first version of the new bonds will give a good response has been followed by more versions and that the total size of the issue will depend on demand.



The bonds will increase for five years and the central bank hopes to issue the first tranche before the end of the year, despite that the decision on this will be made with the participation of the Ministry of Finance.

Said said that the bond interest is expected to be less than the benchmark interest rate of the Central Bank of 6 percent.

He added that Iraq's inflation rate of 2 percent, describing it as a rare and very good.


He said there were no plans to issue international bonds, although it may happen in the future if there are ambitious plans for the development of needed funding.

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