Governor of the Central Bank: The government is seeking to privatize the Rafidain and Rasheed

Governor of the Central Bank: The government is seeking to privatize the Rafidain and Rasheed

2015/9/9 17:34

Governor of the Central Bank - The government is seeking to privatize the Rafidain and Rasheed{Baghdad: Euphrates News} The governor of the Iraqi Central Bank on the Keywords 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 Rafidain and Rasheed.
He explained Keywords in a newspaper interview that the decline in dollar-denominated expenses also also reduced demand for foreign currency.
“The level of reserves in Iraq comfortable” but he also said that reserves are decreasing month but “not significantly.”
Downplayed Keywords down concerns that the continued downward push the Iraqi dinar, which sells for the central bank 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 a 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 its first issuance of international bonds 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 of dollar bonds but Keywords 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.
It also plans to Baghdad for the issuance of 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 regime International Financial after years of wars and sanctions.
He added that Iraq also needs to reform its banks through restructuring and privatization of the largest banks owned by the state: 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 through two or three years.
According to the law can not be the central bank lending to the Ministry of Finance but Keywords said the bank injected liquidity into the banking system of 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.

alforatnews.com