BGG Article quote: "Prime Minister, Dr. Haider al-Abadi, received in his office on Monday, the governor of the Central Bank on the Keywords. During the meeting, they discussed the work of the central bank’s strategy for the coming period and the control of the Iraqi dinar exchange rate against foreign currencies."
That statement is so powerful. Apparently they intend to have dinar exchanged against foreign currencies...not just a foreign currency...foreign currencies...plural...it means international.
I think the CBI governor is feeling the heat right now...will he play ball or will he be removed?
It was a one on one meeting and the fact that they are meeting and talking in that context is fantastic.
Millionday Article quote: "Prime Minister ", received in his office today, Governor of the Central Bank on the Keywords," noting that "During the meeting, they discussed the work of the central bank's strategy for the coming period and the control of the Iraqi dinar exchange rate against currencies foreign."
THIS IS A MEETING WITH ABADI AND CBI GOVERNOR.
ABADI IS STRESSING THE INDEPENDENCE OF CBI BUT IS STATING THAT THE ECONOMIC AND FINANCIAL REALITY AND ALL POLICIES NEED TO BE MOVED FORWARD TO REACH THEIR GOALS.
[WCW] The news has all been good. I see Iraq pushing this to get it done but no one knows what the trigger is that will give us our blessing but it s in Iraq s hands and time will tell
Frank26: KTFA Family ......... Look at DR WS post on ........ BONDS.
This was Your desert and is homework for 5 more days.
walkingstick » March 24th, 2015, 8:22 pm
Huge oil reserves will help Iraq to find buyers for international bonds is preparing to release
MARCH 24, 2015
Dubai / LONDON (Reuters) - despite the war waged by Iraq against insurgents organization «Islamic State» and falling oil prices that has plagued public Bmalith, still the country can rely on huge oil reserves to attract buyers to the first of its issuance of international bonds in nine years.
In the past week, Iraqi Finance Minister, Hoshyar Zebari, said in an interview that the central government is discussing with the bank «Citibank» and »Deutsche Bank» version potential bond dollar worth five billion dollars for five years, contributing Hsilthma in bridging the budget deficit.
It is believed a lot of fund managers that Iraq will fall short of selling such a huge amount of bonds at once, especially as he did not get a credit rating from one of the major agencies. The process of obtaining a credit rating that could take months.
It is true that the bond support specific oil revenues will boost investor demand, but the government did not say they would do so, may refuse to handcuff her hands in this way. So you may be offered a smaller version in the coming weeks, perhaps between $ billion and two billion.
But there is no doubt that Iraq still can enter the international debt market whenever he pleases. Oil Vahtiatath very huge, and his plans for the production of this oil is very ambitious, what makes it an attractive market for funds wanting exposure to political risk versus reap high returns.
And increased Iraq, the second largest producer in the Organization of Petroleum Exporting Countries (OPEC), its production to 3.4 million barrels per day in January from 3.05 million barrels a year ago.
Baghdad has said it aims to raise the total capacity to between 8.5 million and 9 million barrels per day by 2020.
Although this goal may be overly optimistic in light of security concerns and poor infrastructure and lack of liquidity and water, but the huge oil fields in Iraq, located in the southern region controlled by the Shiites to make them immune to the organization «Islamic State» relatively attacks.
The bet buyers of Iraqi bonds that production will increase in the coming years, enough to service its debts Iraq easily, even if fully implemented expansion plans.
Said Brian Carter, director of the conservative «Acadian» Asset Management in Boston «aspirations of the Iraqi oil production and high availability of a positive catalyst for the Iraqi debt.»
Refers trading in the secondary market for dollar-denominated bonds Iraqi maturing in 2028 to restore investor confidence in Iraq somewhat, after Thavthm on sale late last year with falling oil prices.
The yield on bonds jumped to a record high of 10.49 percent in mid-December from 7.2 percent in September, but it came down after that to 8.54 percent.
Usually yield rises with increasing sense of buyer Sindh inherent risk in the acquisition.
There are several factors behind this recovery. Iraqi government forces have made some gains in the face of the organization «Islamic state over the past few months, Baghdad is not directly exposed to the risk.
After reaching Brent crude to $ 45 a barrel of crude rose above $ 50 a barrel.
And put Zebari complex plan to address the projected deficit of $ 21 billion in this year's budget. The minister plans to take many actions, including the imposition of taxes on imports of cars and cards of mobile phones, providing two billion dollars by reducing the rewards of government employees who earn large salaries, collecting $ 1.8 billion using SDRs for Iraq from the International Monetary Fund.
If these steps have enabled the government to meet its obligations and increased oil production will be more of the state of public finances in the event of a lot better in a few years.
Iraq currently earns about $ 50 billion a year from oil exports. If oil prices stabilized, the production growth rate of 50 percent only Seder additional revenues of approximately $ 25 billion, enough to cover the deficit in the budget entirely.
Said Kevin Daly, portfolio manager at «Aberdeen» Asset Management, said the bond that Iraq intends to put forward would be attractive if involved a return around nine percent, and for ten years. The «There will be a demand for Iraq, but certainly will increase if they (the Iraqis) a credit rating.»
And the relationship between the Iraqi traded bonds and other emerging markets are very weak, including Iraq makes an attractive investment market for some money, especially with the approach of raising US interest rates, which adversely affect the emerging market bonds in general.
Fund managers noted also that the Iraqi traded bonds attractive price, compared with dollar bonds due in 2023 to Nigeria, which is facing major political and security problems, but its bonds are trading a yield at least 165 basis points (1.65 percent) from the Iraqi counterpart.
Said Sergei Dergachev, director of the Governor of emerging market debt in the «Union Investment Brivivondz» in Germany, that the chances of the great recovery of oil prices very low, while the chances of Iraq eliminate militants organization «Islamic State» almost non-existent.
But he added: «In times of very low returns, investors looking for credits with a reasonable return, even if there are risks».
walkingstick » March 24th, 2015, 8:46 pm
25/03/2015 (00:01 pm)
Iraq oil helps to attract international buyers for bonds
Range / Reuters
Despite the war being waged against al-Iraq "Daash" The decline in oil prices that has plagued public Bmalith still can rely on oil reserves to attract buyers to the first publications of international bonds in nine years.
Finance Minister Hoshyar Zebari said last week, "Reuters", "The central government is discussing with Citibank and Deutsche Bank version potential bond dollar worth five billion dollars for five years to help them bridge the budget deficit."
It is believed a lot of fund managers that Iraq will fall short of selling such a huge amount of bonds at once especially as he did not get a credit rating from one of the major agencies, and obtain a credit rating could take months.
It is true that the bond support specific revenue oil will boost investor demand but the government has not said it would do so tied her hands may refuse this way, so you may be offered a smaller version in the coming weeks, perhaps between $ billion and two billion.
But there is no doubt that Iraq still can enter the international debt market whenever he pleases. Oil Vahtiatath very huge and plans for the production of this oil is very ambitious as to make it attractive market for funds wanting exposure to political risk compared to reap high returns.
The increased Iraq's second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC) production to 3.4 million barrels per day in January from 3.05 million barrels a year ago. Baghdad has said it aims to raise the total capacity to between 8.5 million and 9 million barrels per day by 2020.
Maybe this goal overly optimistic in light of security concerns and poor infrastructure and lack of liquidity, but the huge oil fields in Iraq, located in the southern region including them in safe from the organization "Daash" relatively attacks.
In the same context, crude oil prices reversed direction, on Tuesday, and re-ascent towards $ 57 a barrel since delivered a weak dollar overshadowed the slowing growth in China and the approach of the Saudi oil production from its highest level ever.
The inn Dollar 0.25 percent against the euro to worsen the losses suffered in the previous session, which enhances commodity prices denominated in dollars which moves in the opposite direction of the US currency.
The price of Brent futures 64 cents to $ 56.56, while stepped up US crude 60 cents to $ 48.05 a barrel , the difference between the already allocated widened to $ 8.51 a barrel in favor of Brent.
and reduced crude gains data showed a decline in factory activity in China's second-largest economy and the largest net oil importer in the world in March.
recorded a preliminary reading of the index HSBC / Market purchasing managers 49.2 in March, down from the 50 level that separates growth activities and shrinking on a monthly basis, and analysts predicted Economists in a Reuters poll reading at 50.6.
The decline in the PMI in China after a report released last night reported that Saudi Arabia is the largest producer in OPEC pumps about ten million barrels a day, a figure approaching the highest on record and more than 350 thousand barrels per day from the figure provided by the Kingdom of OPEC production in February. LINK
Emailed to Recaps:
IMF Managing Director Meets Senior Chinese officials, Speaks at 2015 China Development Forum
Press Release No. 15/131
March 23, 2015
Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), today concluded a five-day visit to China and issued the following statement:
“It has been a great pleasure to be back in China once again and to witness the vibrancy of its economy and society, and the dedication of its people to a more open, confident and prosperous China.
“In Beijing, I had the privilege of meeting with Premier Li Keqiang, Vice Premier Ma Kai, and People’s Bank of China Governor Zhou Xiaochuan. In Shanghai, I met with Party Secretary Han Zheng and his colleagues.
“In my meetings with the authorities, we exchanged views on recent developments in the global economy, China’s ongoing reform efforts, strengthening the partnership between the IMF and China, and China’s upcoming presidency of the G20 in 2016.
The implementation of structural reforms as outlined in the 3rd Plenum Blueprint is underway. This should lead to slower, safer, and more sustainable growth--with a focus on innovation and entrepreneurship--which will be good for China and its people – and good for the world.
I noted the impressive efforts made by the Chinese government to reform in three key areas in particular: cleaning up the house, by promoting good governance through strengthening the legal framework and the anti-corruption campaign; cleaning up the air, by curbing pollution and preserving the environment; and clearing the path to even more engagement with the world, through China’s further participation in the multilateral dialogue and through more international investment and trade.
I welcomed China’s various initiatives in this area, including through the newly established Asian Infrastructure Investment Bank (AIIB).
“I am very impressed by the rapid internationalization of Renminbi (RMB) in recent years. The authorities’ commitment to accelerate reforms, particularly in the financial and external sectors, should further facilitate the international use of the RMB.
The authorities have also expressed interest in having the RMB included in the SDR basket. We welcome and share this objective, and we will work closely with the Chinese authorities in this regard.
“During our meetings, we also discussed the delays in implementing the IMF’s 2010 quota and governance reform. I share the authorities’ view that every effort should continue to be undertaken to ensure that these reforms can be made effective as soon as possible.
“During my visit, I was honored to speak at the 2015 China Development Forum where I met with Vice Premier Zhang Gaoli and other senior policymakers, business executives and thought leaders on pressing issues facing the world and China in the “New Normal”. Topics of discussion included monetary policy, fiscal reforms, and enhancing international cooperation.
“I had also a series of very interesting meetings in Beijing and Shanghai with a broad section of Chinese society, including young entrepreneurs, financial sector practitioners, accomplished Chinese women, and students at Fudan University--where I had the opportunity to engage with them in a conversation on creating new ingredients for growth and success.
“I would like to express my deep gratitude to the Chinese government and people for their wonderful hospitality. I look forward to visiting China again soon.”
IMF COMMUNICATIONS DEPARTMENT
Public Affairs Media Relations