42% of Iraq’s reserves have been transferred to US bonds… and Baghdad will benefit more than $1.5 billion
42% of Iraq’s reserves have been transferred to US bonds… and Baghdad will benefit more than $1.5 billion
2022-12-21
Yes Iraq: Baghdad
Iraq continues to raise its holdings of US bonds monthly, taking advantage of the rise in oil prices and the accumulation of its hard currency reserves, at a time when Iraq aims to benefit from the interest granted by the US Federal Reserve on bonds, which may exceed 4%.
And while Iraq’s possession of bonds amounted to $36.9 billion last September, up by 3.65% compared to August, to be the fourth largest Arab country after Saudi Arabia, Kuwait and the UAE in possession of US bonds, the data of last October came to show an increase in Iraq’s possession of bonds with a value of more than one billion dollars. extra.
In the latest table of the US Treasury, it was stated that “Iraq rose one place to reach the 31st rank among the countries with the largest possession of US Treasury bonds, of the 38 countries included in the table among the countries with possessions of more than 30 billion dollars.”
And she added, “Iraq’s possession of these bonds amounted to 37.968 billion dollars for the month of October, an increase of 2.71 percent over September of 2022, and an increase of 85.78 percent over the same month of last year 2021.”
She pointed out that “Iraq was the fourth largest Arab country after Saudi Arabia, the Emirates and Kuwait, while Japan came at the top of the countries with the largest possession of these bonds, followed by China second and the United Kingdom third,” noting that the total bonds of the countries of the world amounted to 7 trillion and 185 billion dollars.
Accordingly, Iraq owns 0.5% of the total bonds sold around the world, which are owned by other countries.
And while the Central Bank announced that its reserves of hard currency exceeded 90 billion, this means that more than 42% of Iraq’s reserves have been converted into US bonds.
The interest rate on US bonds is more than 4%, which means that Iraq can earn interest on these bonds in the amount of more than 1.5 billion dollars in interest from the US Treasury.
yesiraq.com
