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Specialists: fears of sanctions behind the reduction of US bonds
Economical 2023/07/26
Baghdad: Hussein Thaghab Al-Tamimi
Economic specialists suggested that fears of US sanctions on the Iraqi banking and monetary system were behind Baghdad's move to reduce US bonds, while
others considered it an important step towards diversifying the investment portfolio.
Iraq reduced its holdings of US bonds to more than $8 billion during the first five months of 2023, to reach the 36th rank among the 38 countries with the largest holders of US Treasury bonds.
This comes days after the US Treasury announced imposing new sanctions on 14 Iraqi banks, months after imposing similar sanctions on 4 important banks.
Financial expert Aqil Jabr Ali al-Muhammadawi told Al-Sabah,
"Reducing Iraq's holdings to more than $8 billion indicates that it senses economic risks involving continuous international sanctions from the US Treasury, in light of the restrictions of the Federal Bank and the US Treasury on the electronic transfer platform and its impact on the instability of the parallel exchange rate market." He added,
"The reality of the situation requires an objective assessment of the risks and penalties and their impact on the economic and financial reality and the restriction of monetary policy, in light of the availability of spaces available for investment in bonds and assets in other countries that are safer and less risky, including China, India, East Asia, Europe and others." He pointed out that
"the monetary policy of the Central Bank of Iraq is not free-handed nationally, as is evident from the American pressures,"
explaining that the latter is exercising the hidden hand controlling the reality of Iraqi banks.
For his part, Hassan Ali Abd, an expert in financial affairs, explained that
"safe and qualitative investment enhances Iraq's financial capabilities, and confronts the challenges that occur in more than one detail." He added to "Al-Sabah" that
"despite the decline in Iraq's possession of US bonds, it is still in an advanced position among the Arab countries," pointing out that
"the diversification of the investment portfolio represents an important step in economic performance and reduces risks in financial investment work." And he hinted that
"reducing the possession of US bonds sometimes comes from heading to the safest investment, and
here gold may be one of the most important destinations that the country is heading towards, and
this is one of the obvious things that creates flexibility in financial investments."
As for the consultant in development and investment, Amer Al-Jawahiri, he told Al-Sabah: He explained that
"the method of managing the country's resources and its development projects and moving to diversify its economy improves the credit capabilities of Iraq and the extent to which it attracts direct investments, both local and foreign, and that means moving the Iraqi economy."
Al-Jawahiri called on "the government and the central bank to disclose the investment of the reduction amounts for those bonds in terms of transparency related to the generational reserve and the extent of the benefit of these investments."
https://alsabaah.iq/81228-.html
Economical 2023/07/26
Baghdad: Hussein Thaghab Al-Tamimi
Economic specialists suggested that fears of US sanctions on the Iraqi banking and monetary system were behind Baghdad's move to reduce US bonds, while
others considered it an important step towards diversifying the investment portfolio.
Iraq reduced its holdings of US bonds to more than $8 billion during the first five months of 2023, to reach the 36th rank among the 38 countries with the largest holders of US Treasury bonds.
This comes days after the US Treasury announced imposing new sanctions on 14 Iraqi banks, months after imposing similar sanctions on 4 important banks.
Financial expert Aqil Jabr Ali al-Muhammadawi told Al-Sabah,
"Reducing Iraq's holdings to more than $8 billion indicates that it senses economic risks involving continuous international sanctions from the US Treasury, in light of the restrictions of the Federal Bank and the US Treasury on the electronic transfer platform and its impact on the instability of the parallel exchange rate market." He added,
"The reality of the situation requires an objective assessment of the risks and penalties and their impact on the economic and financial reality and the restriction of monetary policy, in light of the availability of spaces available for investment in bonds and assets in other countries that are safer and less risky, including China, India, East Asia, Europe and others." He pointed out that
"the monetary policy of the Central Bank of Iraq is not free-handed nationally, as is evident from the American pressures,"
explaining that the latter is exercising the hidden hand controlling the reality of Iraqi banks.
For his part, Hassan Ali Abd, an expert in financial affairs, explained that
"safe and qualitative investment enhances Iraq's financial capabilities, and confronts the challenges that occur in more than one detail." He added to "Al-Sabah" that
"despite the decline in Iraq's possession of US bonds, it is still in an advanced position among the Arab countries," pointing out that
"the diversification of the investment portfolio represents an important step in economic performance and reduces risks in financial investment work." And he hinted that
"reducing the possession of US bonds sometimes comes from heading to the safest investment, and
here gold may be one of the most important destinations that the country is heading towards, and
this is one of the obvious things that creates flexibility in financial investments."
As for the consultant in development and investment, Amer Al-Jawahiri, he told Al-Sabah: He explained that
"the method of managing the country's resources and its development projects and moving to diversify its economy improves the credit capabilities of Iraq and the extent to which it attracts direct investments, both local and foreign, and that means moving the Iraqi economy."
Al-Jawahiri called on "the government and the central bank to disclose the investment of the reduction amounts for those bonds in terms of transparency related to the generational reserve and the extent of the benefit of these investments."
https://alsabaah.iq/81228-.html
