Brother - Baghdad
Governor of the Central Bank of Iraq on the Keywords said that the decline in oil revenues reduced the country's foreign exchange reserves to about $ 60 billion, adding that the level of reserves this comfortable, revealing that Iraq also needs to reform its banks through restructuring and privatization of the Rafidain and Rasheed.
Keywords said in a newspaper interview that the decline in dollar-denominated expenses also also reduced demand for foreign currency.
He added that "the level of reserves in Iraq comfortable" but he also said that reserves are decreasing month but "not too much".
Keywords and reduced down concerns that the continued downward pressure the Iraqi dinar, which the central bank sells to banks and dealers who obtained licenses at a price fixed in 1166 dinars to the dollar.
"If we look at the markets these days .. we will see that the price is very stable .. and very reasonable, so no need to worry about this at the moment."
As part of efforts to help bridge the budget deficit, the Iraqi government is seeking to have a version of the first international bond in nine years in Europe and the United States this week.
The government hopes to raise up to six billion dollars in a series of versions Keywords dollar bonds but said that the first phase will be to collect two billion dollars.
He predicted that the interest rate exceeds the eight percent because of security concerns.
Baghdad also plans to issue local bonds worth five billion dollars starting from the last quarter of the year.
Keywords and said that the issuance of bonds in international markets would help in the reintegration of Iraq, the global financial system after years of wars and sanctions.
He added that Iraq also needs to reform its banks through restructuring and privatization of the largest state-owned banks: the Rafidain Bank and Rasheed Bank.
"This is a major change that could lead to change the entire sector. These two banks dominate about 80 or 90 percent of the whole sector."
He pointed out that foreign banks may take possession of shares in the two banks in two years or three.
According to the law it can not lend to the Central Bank and Ministry of Finance Keywords but said the bank injected liquidity into the banking system through the purchase of Treasury bills and bonds by up to five trillion Iraqi dinars (4.38 billion dollars) this year in the secondary market.
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