Article quote: “Iraq plans to sell local bonds to the public for the first time since 2003, with a 5 trillion dinar ($4.24 billion) issue expected this year, the finance minister said on Thursday, as the country seeks to cover a widening budget deficit.”
IT APPEARS THAT IRAQ…OFFERING NATIONAL/LOCAL BONDS IS TRYING TO PULL IN IQD.
BY IRAQ OFFERING BONDS IN LOCAL CURRENCY, THE ATTEMPT IS TO DRAW IN IQD BY OFFERING THE BONDS FOR SALE IN THE VALUE OF THE LOCAL CURRENCY…
THE ARTICLE STATES AT “1180”.
BY BRIDGING THE DEFICIT IN THE BUDGET, (BY PROXY) THEY’RE ATTRACTING IQD AND INVESTORS WHO ARE HOPING TO REAP PROFIT BY PURCHASING THE BONDS AT A (TBD) INTEREST RATE.
THIS IMHO, WILL TEST THE CONFIDENCE OF IRAQI’S AND ALSO PULL IN IQD…it appears to me that they do this by buying foreign currency reserves.
Once the cbi stops this intervention And people continue to buy dinar This will cause the exchange rate to go up – that is the hope anyway.