What does it mean for Iraq to raise its balance from buying US Treasury bonds?

by **Rocky** Tue 24 Aug 2021, 7:07 am

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Post n°1

What does it mean for Iraq to raise its balance from buying US Treasury bonds?

by Rocky Tue 24 Aug 2021, 7:07 am

[size=36]What does it mean for Iraq to raise its balance from buying US Treasury bonds?[/size]

political| 11:39 - 24/08/2021

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Baghdad - Mawazine News

The US Treasury Department stated that Iraq raised its holdings of US bonds to 2.21 billion dollars during the month of June, bringing the total to more than 21 billion dollars, after it was nearly 17 billion dollars in December of last year 2020.
Adviser to the Prime Minister for Financial and Economic Affairs, Mazhar Muhammad Salih, said, "Raising Iraq's balance of purchasing US Treasury bonds by 23.98% to reach $21.187 billion is something expected, especially since Iraq is among the dollar region because of the nature of oil exports and their pricing in dollars, in addition to the largest Commercial transactions in Iraq are within the dollar area, whether in Asia or in the regional environment, at a rate of 80 to 85% of Iraq’s foreign transactions in dollars,” noting that “Iraq’s possession of the dollar is normal, noting that the US dollar constitutes about two-thirds of the official reserves of countries, and there are about 60% Of the global loans granted in dollars, about 84% of global trade is repaid in dollars.
He stressed that "the dollar has global dominance as well as dominance over Iraq's banking payments, and because Iraq is a dollar area, it always keeps bonds because other transactions may cause losses, so the proportion of reserves in the dollar is kept in the external centralization with the United States until it is invested as a predominant investment - that is Short term - from three months to six months, and it can be transferred during this period without losses and returns for managing these bonds.
And the government advisor added, “The process of investing and managing reserves in Iraq and in foreign currency is either by placing them within a fixed deposit that has interest or current accounts, if there is a withdrawal or part of it, by diversifying it, such as investing in American bonds and their returns,” and he explained that American bonds are classified as (A3). ) meaning that it does not accept loss and is 100% guaranteed, and this is universally recognized and many oil countries deal with it.” Ended 29/A43

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by **Rocky** Tue 24 Aug 2021, 7:25 am

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Post n°2

Two economic advisors: These are the benefits of raising Iraq's possession of US bonds

by Rocky Tue 24 Aug 2021, 7:25 am

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Baghdad- IQ

Two economic advisers revealed, on Tuesday (August 24, 2021) the benefits of the step taken by the government, to raise Iraq's balance from buying US Treasury bonds, while they saw it as a safe investment to improve our reputation in front of other investors.

Adviser to the Prime Minister for Financial and Economic Affairs, Mazhar Muhammad Salih, said in a statement to Al-Sabah newspaper, seen by IQ NWES , that “raising Iraq’s balance from purchasing US Treasury bonds by 23.98% to reach $21.187 billion is expected, especially since Iraq is one of the Within the dollar area, due to the nature of oil exports and their pricing in dollars.

Saleh pointed out that "the largest commercial transactions in Iraq are within the dollar area, whether in Asia or in the regional environment, with 80 to 85% of foreign transactions," noting that "Iraq's possession of the dollar is normal, noting that the US dollar constitutes about two-thirds of the reserves." There are about 60% of global loans granted in dollars, and about 84% of global trade is paid off in dollars.

For his part, the financial advisor to the Secretary-General of the Council of Ministers, Obaid Mahal, confirmed, in a statement to Al-Sabah newspaper, seen by IQ NWES , that “raising Iraq’s possession of US bonds is largely in the interest of the financial situation in Iraq, especially that it is properly invested and the result of it.” Benefits, so the increase in our investment assets in the US Treasury is good, and it is a safe and non-risk investment.”

He pointed out that "this increase improves the financial situation in Iraq, as well as its positive impact on our reputation in front of investors and others."

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