***** Aa treasury transfers and central levels to control liquidity

3/13/2014 0:00

Baghdad, Mustafa al-Hashemi


The sale transfers the central bank and the treasury transfers from one of the procedures and means of monetary policy taken by the central bank to deal with the levels of liquidity on a temporary basis , as it represents a risk-free investment and therefore play an active role in the secondary market .

In this regard, the economic expert said the appearance of Dr. Mohammed Saleh told the (morning ): The short-term treasury transfers expire at the end of the year which comes to finance the deficit of my time while the central bank bonds are long-term and will continue over the years.

And the benefit that transfers the bank belongs to the Iraqi Central Bank and treasury transfers back to the Ministry of Finance sold at an auction held by the Central Bank for this purpose , adding that the treasury transfers are handled internally ( inside Iraq), which is a bond issued by the government, of between three months and full year and this leaves do not bear interest but are sold at a discount to face value given the government gives them the benefit of cash is relatively low compared to the prevailing interest rate on bank loans because of the severity of the liquidity stemming from these cases could be deducted before the date of maturity at commercial banks .

 He noted that the participants in this auction as a fund retirement government departments or the Ministry of Labor .

He explained that the central bank raises Hawwalath sale to private banks and the amounts ranging between 100 to 150 billion dinars, the duration of a week or more, and the interest rate of a multi- highest discount rate of 5 percent .

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